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'LET THEM EAT CAKE,' CEOS SAY AS LAYOFFS CONTINUE - 'WILL HIGHER-UP HEADS ROLL?' ASKS REPORT FROM ERANOVA
MOUNTAIN LAKES, NJ - Sept. 22, 2003 (Send2Press Newswire) -- Like
pre-Revolutionary France, America is being squeezed, possibly to a flash
point. "Back then the trigger word was bread, now it's jobs, but the
issue is the same," says Richard W. Samson, author of a report from think
tank EraNova Institute (www.eranova.com). "A revolution - let's be sure
it's peaceful -- may be on the horizon."
The report, "Surviving the Great Global Brain Drain," deals with the
dilemma of layoffs even as business improves, and offers a roadmap to new
and better jobs. It singles out information technology (IT) as a key cause
of the jobless recovery and, ironically, as its most prominent victim.
The report cites the IT mechanisms that let companies send jobs offshore
and eliminate tasks entirely: corporate computing, cheap global
telephony, and advances such as Web Services. "CEOs are just trying to
stay competitive," says Samson. "They don't see the consequences." Many
economists warn that America‚s growing wealth gap invites social
"IT job casualties are a bellwether, leading the way to white-collar
carnage," says Samson. A Gartner Inc. study shows that 10% of
software-development and IT service-provider jobs will be moved offshore
by the end of 2004. Following suit, banks, brokerages, and insurance
companies plan to move more than 500,000 jobs overseas within five years,
according to AT Kearney.
The EraNova report documents a shift of know-how work into electronics,
paralleling an earlier shift of muscle work into machinery. This lets
white-collar jobs, like blue-collar ones, be transferred to low-wage
foreign workers or to fully automated systems.
Available at http://www.eranova.com/braindrain.pdf, the report offers a
fix: recasting work to leverage "hyper-human" skills not easily
transferred via, or into, electronics. "CEOs had better lead the
revolution by creating new and better jobs," says Samson. "Otherwise
they'll be assaulted by legislation, union resurgence, and activism of all
"The future will belong to companies that -- recent aberrations aside --
have traditionally placed a high value on their people," he says, "like
GE, 3M, IBM, Disney, Johnson & Johnson, Kellogg, Xerox, Intel, Readers'
Digest, FedEx, Microsoft, and WL Gore."
EraNova Institute, 142 Morris Avenue - Mountain Lakes, NJ 07046 -
Source of News:
New Jersey Business Newswire
Career and IT Employment Newswire
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