ELECTRONICALLY IMPORTED LABOR 

(Editor's note: In the beginning computers could only communicate in capital letters. This is one of 20 columns from Dr. Tomorrow's original series, included here to indicate change as well as describe it. Those columns also hold another story, that change is swift and offers both disaster and opportunity.)

IF YOU WERE IN AN INDUSTRY HURT BY THE VAST FLOW OF HIGH QUALITY AND INEXPENSIVE GOODS FROM THE FAR EAST YOU KNOW HOW QUICKLY THAT DEVASTATING TORRENT OF IMPORTS DEVELOPED.

NOW THE FIRST SMALL WAVES OF A POTENTIALLY LARGER THREAT JUST OVER THE HORIZON ARE ALREADY HITTING THE SHORES OF NORTH AMERICA.

IN AN AGE OF INSTANT AROUND-THE-WORLD-COMMUNICATIONS, OLD THOUGHTS, POSSIBILITIES AND APPARENTLY STABLE PROCEDURES BECOME SUBJECT TO RAPID CHANGE. TODAY IT IS NOT THE RAW MATERIALS AND THE MANUFACTURING PLANTS THAT ARE ESSENTIAL. IT IS THE INFORMATION ABOUT A PRODUCT OR SERVICE THAT IS MOST IMPORTANT. THAT CAN BE SENT ANYWHERE -- AND WITH THE SPEED OF LIGHT.

PRODUCTION COSTS, OF HARDWARE AND SOFTWARE ARE VERY EXPENSIVE IN NORTH AMERICA DUE TO OUR HIGH WAGE SCALES. THE BLUNT FACT IS THAT IN THE NEW AGE WHERE WE HAVE TO COMPETE WITH THE WORLD WE ARE OVERPAID AND WE UNDERPRODUCE. IN THE REST OF THE WORLD ALMOST ALL COSTS ARE INFINITELY LOWER. AND WE ARE NAIVE IF WE THINK OTHERS CAN'T DO IT JUST AS WELL AND AT LOWER COST. IT WAS ONLY A MATTER OF TIME UNTIL LABOR WAS "IMPORTED ELECTRONICALLY". THAT DAY HAS DAWNED.

IN A SMALL WAY THIS HAS BEEN HAPPENING FOR SOME TIME. SOME NORTH AMERICAN COMPANIES STARTED YEARS AGO TO SEND KEYBOARD PUNCHING OPERATIONS OVERSEAS, MAINLY TO THE CARIBBEAN. SOUTHERN WAGE RATES FOR THE DULL, ROUTINE JOBS WERE A FRACTION OF WHAT HAD TO BE PAID NORTH OF THE RIO GRANDE.

SOFTWARE DEVELOPERS HAVE FOUND HIGH GRADE PROGRAMMERS ELSEWHERE -- AND AT TWENTY CENTS ON THE DOLLAR COMPARED TO THEIR U.S. EQUIVILANT. THE FIRST USE WAS CENTERED IN ENGLAND WHERE COMPETENT PROGRAMMERS WERE AVAILABLE AT HALF THE COST OF THEIR NORTH AMERICAN COUNTERPARTS.

A LARGER THREAT COMES FROM -- INDIA.

EASTERN SYSTEMS TECHNOLOGY, INC. OF MADRAS HAVE SET UP A U.S. SUBSIDIARY IN CAMPBELL, CALIFORNIA TO SELL OFFSHORE SOFTWARE DEVELOPMENT. A SECOND INDIAN COMPANY RABA CONTELL OF NEW DELHI HAS ALSO ENTERED THE FIELD.

ALTHOUGH FOREIGN COMPETITION MIGHT ALSO COME FROM SINGAPORE, HONG KONG OR EVEN JAPAN IT SEEMS THE LACK OF A LANGUAGE BARRIER IS INDIA'S BIG ADVANTAGE. MOST OF THOSE INVOLVED, NOW BACK IN INDIA, HAVE BEEN EDUCATED IN THE U.S. OR CANADA. THEY KNOW THE REQUIREMENTS HERE, ACCORDING TO RAM MANI, PRESIDENT OF EASTERN SYSTEMS, A COMPUTER SCIENCE GRADUATE OF STANFORD UNIVERSITY AND A "SILICON VALLEY" CONSULTANT FOR THE PAST EIGHT YEARS.

EXPERIENCED SOFTWARE ENGINEERS CAN LIVE IN INDIA ON A FRACTION OF WHAT THEY WOULD BE PAID IN NORTH AMERICA. AN INDIAN SOFTWARE ENGINEER WITH THREE-TO-FIVE-YEARS' EXPERIENCE AND A MASTER'S DEGREE MAKES LESS THAN $1,000 A MONTH BUT CAN ENJOY A LUXURIOUS LIFESTYLE ON THAT INCOME, SAYS MANI.

ALTHOUGH THIS POSES STILL ANOTHER THREAT TO NORTH AMERICAN EMPLOYMENT LEVELS IT ALSO PROMISES AN EVENTUAL DROP IN THE PRICE OF SOFTWARE AS SUCH SAVINGS FILTER DOWN THE SUPPLY PIPELINE. IT ALSO SHOWS THAT A NEW TYPE OF THINKING WILL SHORTLY BE IN B I G DEMAND HERE.

MORE INFORMATION:

RAM MANI, PRESIDENT, EASTERN SYSTEMS TECHNOLOGY, INC., 501 EAST VANDELLWAY, CAMPBELL, CALIFORNIA 95008.

PHONE: (408) 446-3866.

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