Professor Norm Matloff On Offshoring And The Future Of American Engineering
Professor Norm Matloff [email] wrote this to his mailing list, and it appears on his website, [the original is here. and an archive of previous postings is here]
Professor Matloff writes:
On October 23, IS Associates, an industry affiliates program in the UCLA Anderson School of Management, held a panel discussion on the future of U.S. IT professionals, given the rise of H-1B and offshoring.
This is one of the few panel discussions I’ve ever participated in that gave everyone a chance to speak in full. Instead of the usual one hour, we actually had three hours (including a break and a Q&A period) in which to thoroughly debate the issues. That sounds like hardship for both speakers and audience alike, but the debate was quite lively and the audience seemed quite engaged.
Enclosed below is a blog report on the event by Don Tennant, editor of Computerworld, who served as the moderator. He posed some excellent questions, and included a couple of small excerpts of the ensuing discussion in his blog.
Though Don is correct in stating that much of the debate consisted of exchanges between Prof. Ravi Aron and me, it’s important to point out that there were two other panelists, Jesus Arriaga, Interim CIO of Bosley Medical, Inc. and Mitch Stern, Director Human Capital, Deloitte Consulting. Mr. Stern, an HR expert, did have quite a bit to say, and Mr. Arriaga made some interesting comments as well.
As you will see in his remarks below, Prof. Aron takes the libertarian point of view. He admits that the H-1B program is used for cheap labor rather than for remedying a labor shortage, and over lunch before the event he also admitted that the H-1Bs are mainly brought in so that employers can avoid hiring older, i.e. 40+, Americans; indeed, he brought this up before I did. (He also mentioned that to prep for the debate, he talked to his former colleague at Wharton, Peter Cappelli, whose writings on the non-shortage of labor I’ve often quoted.) He put forth the usual argument, spoken with religious fervor and mathematical certainty, that purely laissez faire economic policies make the world better.
For my part, I stated that I respect the libertarians because at least they are honest about issues like this. However, I also stated that I believe most people (including those in the audience) aren’t libertarians. My willingness to participate in forums such as this is motivated mainly by a desire to get the facts out in the open; then each listener can apply his own political/economic philosophy to forming his stance on the issues.
The nature of the audience, consisting of CIOs, IT managers, IT entrepreneurs and the like, made for quite a different type of discussion than one usually finds in these forums. They KNOW these issues. This is the first such forum I’ve seen in which NO ONE (if I remember correctly) challenged my point that H-1B is about cheap labor and replacement of older workers. Even Stern and Arriaga, both of whom strongly asserted a tech labor shortage, did not dispute these points, and as mentioned, Aron did not dispute them either.
One thing that got a big laugh and several references in the subsequent discussion was that I said, “Paraphrasing Shakepeare, I say `First thing we do is kill all the HR people.’”
After the event, several people told me some of their own favorite HR horror stories. HR people tend to be zealous gatekeepers, a major obstacle to good hiring. Mitch Stern, a very personable guy, took the kidding good naturedly.
Ravi Aron was personable too. Though the discussion between him and me got a bit heated at times (I do get irritated when offered false choices such as “Who would you rather believe on H-1B, Paul Krugman or Charles Grassley?”), I look forward to another pleasant chat with him when we bump into each other again.
Yet it’s clear that Ravi and I differ sharply in, literally, our views of the world. It’s not just ideology, but also a sense of nationality–or lack of one, as the case may be. I get the impression that Ravi is a member of a growing class of immigrants to the U.S. who consider themselves transnationals, not tied to any particular country. Just as many big firms view themselves multinational, and Harvard economist Richard Freeman says even his university thinks of itself as multinational, there are now many individuals who have a multinational mentality too. The trend has been noticeable enough for UC Berkeley anthropologist Aihwa Ong to write a book on it, titled Flexible Citizenship.
Before coming to the U.S. for study and later work, Ravi was a consultant in Malaysia, and for a while ran a software firm in his native India. It wouldn’t surprise me if Ravi’s next job were in the UK or China, say. This has to color his views of offshoring and H-1B.
His stance on those issues is also presumably impacted by his outside consulting work on offshoring, which I’m told has been quite lucrative for him. (Speaking of which, one of the people writing comments on Don Tennant’s blog asserted that I have a “vested interest” against H-1B; but it ought to be clear that the status of the H-1B program has no substantial impact on me one way or the other.)
By the way, I posited three points that I thought everyone could agree on as to the desirability/necessity of keeping a major fraction of this profession American. Two are in Don’s excerpt below–military work and the need for innovation. The third one was the point that whether we think the importation of foreign programmers and engineers is good or not, they’re not going to keep coming here in the future. Tech careers in the U.S. are becoming less attractive, due to stagnant wages and a roller coaster job market, while jobs in India and China are on the upswing. Even Mitch Stern, the HR expert, seemed very concerned when I mentioned this. Yet Ravi dismissed it, saying that we (he may have said “you”) can grow this labor force internally if things come to that. Mitch replied, no, this is not a feasible solution, as an economy takes many years to make such adjustments.
In a somewhat comic twist (whether deliberate or unwitting), all of us speakers were presented with special clocks, with a map of the world and 24 time zones, perfect for the globalist future.
I did notice, though, that in order to see the U.S. one needs to hold the clock upside down.
Norm
Matloff vs. Aron on the loss of U.S. IT jobs to non-U.S. workers
By Don Tennant on Mon, 11/05/2007 - 11:39am (more…)

