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- Newsgroups: comp.software-eng
- Path: sparky!uunet!ornl!styx!jov
- From: jov@styx.ornl.gov (Judd Jones)
- Subject: SE going offshore?
- Message-ID: <1992Nov13.142754.12335@ornl.gov>
- Summary: Claim: US will lose software industry. Opinions?
- Sender: usenet@ornl.gov (News poster)
- Organization: Oak Ridge National Lab
- Date: Fri, 13 Nov 1992 14:27:54 GMT
- Lines: 22
-
-
- Yesterday, Rustum Roy, Professor of Materials Science at Penn State,
- gave a lecture here entitled "Is American Science Policy the Enemy
- of American Technology?" (He concluded that it is.)
-
- One of his many claims was that just as the US has virtually lost
- the DRAM industry (global market share down from 100% in 1976 to
- 15% today), it will also lose the software industry.
-
- His basic argument is that there are plenty of clever, well-trained
- people in developing countries willing to work for less than their
- US-based competitors. One example is the HP software shop in Bombay.
- It will be economically inevitable that this labor-intensive
- industry will be exported to places where labor is cheap.
-
- What do you think?
-
- (I note that even a 20:1 productivity differential cannot overcome
- a greater than 20:1 cost differential, so greater per capita domestic
- productivity may not be terribly relevant.)
-
- judd jones -- oak ridge national laboratory -- jonesjp@ornl.gov
-