October 11th, 2003

Andy Grove on Outsourcing

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Andy Grove, CEO of Intel, warns the danger of outsource:

The U.S. software industry is about to lose jobs and market share to foreign competitors unless the government acts quickly to fight protectionist trade policies and double U.S. productivity, he said.

Actually, I wrote about the trend of outsourcing in Predicting the future a month ago.

I argued that protectionist policy won’t work in our global society anymore. Protectionist policies will only make U.S companies less competitive globally and hence a slow and silent death for the industry.

What U.S software industry should do, really, is to move up the value chain, from programming to design. This is no different from products been prototyped and designed in U.S but manufactured in China or Taiwan. Update 12/10:

Another article published by Forbes on the same topic.

Wall Street Journal runs an article about the white-collars workers movement to free trade. Sound very much like Trade Unions of blue-collars workers. Seem my prediction is coming true…

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