12 October 2003

Intel Founder Says Government Intervention is Necessary To Stem Tech Job Siphon to Asia

Intel chairman Andrew Grove acknowledges that the offshore job migration that Intel itself has embraced threatens economic recovery and growth in the United States.
Grove acknowledged under questioning that the tech industry itself is responsible for numerous jobs leaving the United States, as firms take advantage of considerably cheaper labor costs in India and elsewhere.

Grove said he is torn between his responsibility to shareholders to cut costs and improve profits, and to U.S. workers who helped build the nation's technology industry but who are now being replaced by cheaper labor. Grove did not offer a solution, saying only that the government needs to help decide the proper balance between the two. Otherwise, he said, companies will revert to their obligation to increasing shareholder value.

Interesting that Grove is basically saying that without a public policy plan on this critical matter, the U.S. will continue to hemorrage information technology jobs and the resultant displacement is a serious threat in many ways...


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