"Mr Outsource" Hired to Lead GM

A recent headline from NBC Los Angeles read "Can'tworld." Doctors too can be outsourced 8000 miles
We Build Cars the Way We Make Chips?" Theaway.
premise of the article was that we could hire a fewIn China, people play for money the on-line games of
computer aided draftsmen to put automobile designs"World of Warcraft" and "Magic Land" so that affluent
onto a computer, and then have the car manufacturedonline gamers, who lack the skill, don't have to earn
overseas, and this would result in a healthy domestictheir way into the upper levels of the games. The
auto industry.locals call this occupation "gold farming". We have
Outsourcing manufacturing is how much of the chipeven outsourced our play.
industry operates, and in addition, much of theWhitacre to Lead GM
engineering is also being outsourced overseas.President Obama recently hired Ed Whitacre, the
Companies like AT&T, LSI Logic, Hewlett-Packardformer head of AT&T, to take over General
and others no longer manufacture anything. They areMotors (GM). Whitacre was chairman and CEO of
"fabless", meaning they hire a third party foundryAT&T from 1990 to 2007. During his tenure,
overseas to manufacture something for them, andWhitacre led the company through several acquisitions
then they put their name on the item.and sales, and earned the moniker "Mr. Outsource", by
We now outsource almost anything. In a bizarreeliminating all of AT&T's manufacturing, and
example last year, some Jack-in-the-Box franchisesoutsourcing as much as possible of the operation.
tested a process where the order was taken at theDoes this move mean that President Obama wants
drive-through window by an operator located morethe auto industry to become "fabless" while subsidizing
than 8000 miles away in India. The customers werethe operation by an estimated $20 billion? GM's
never aware, except for a few complaints about thereorganization plan calls for the closing of 16
operator's non-southern accent (the test was inmanufacturing facilities in the U.S., including four
Charlotte, North Carolina). With a little automation, aassembly plants.
fast food store could conceivably be staffed locally byAccording to the Detroit News, "General Motors Corp.
as few as two people, with the support of order entrywill shift more production of vehicles bound for the U.S.
from low-wage locales. One advantage of amarket to China, Mexico, South Korea and Japan, but
centralized order processing system: it becomeswill keep total imports at roughly one-third of all sales
easier to provide multi-lingual services.here.
An estimated 80% of tech support calls to AT&TIn a confidential 12-page presentation to members of
are now answered in India and the Philippines. TheCongress, obtained by The Detroit News on Friday,
Academy Award movie "Slumdog Millionaire" wasGM said it will boost U.S. sales of vehicles built in those
about these tech support sweatshops . Dellfour countries by 98 percent -- or about 365,000
Computers charges an additional fee if the customervehicles -- while shrinking production in Canada,
wants tech support from a "North American" techAustralia and European countries by about 130,000
support person.vehicles.
Doctors can now diagnose patients over the Internet.GM also disclosed it will start importing vehicles made
This is useful for people who live in areas too remotein China in 2011, reaching 51,546 vehicles in 2014.
to support a local physician. Even remotely controlledImports from South Korea to the United States will
surgery (also known as telesurgery) has beenjump from 36,967 vehicles in 2010 to 157,126 in 2014."
demonstrated through the use of robotics. One of theThe list of jobs that will ultimately prove difficult to
earliest remote surgeries was conducted in 2001, withoutsource overseas includes: policemen, firemen,
a surgeon in New York performing a gallbladderparamedics, plumbers, electricians, nurses, child-care,
operation on a patient in France. Dr. Jacquesfarmers, and landscapers. However some of these
Marescaux, who led the team, said the operationjobs could be filled by permitting more guest workers
demonstrated "the third revolution we've seen in theinto the country legally. The H-2A visa program has
field of surgery in the past 10 years". "It lays thebeen updated to make it easier to hire foreign workers
foundations for the globalization of surgical procedures,for this purpose.
making it possible to imagine that a surgeon couldWhat is wrong with this picture?
perform an operation on a patient anywhere in the