Q
HOW can we change things so we don't have to outsource to India and other countries any more?
A
WE CAN'T . . . and we shouldn't. Look, the debate over outsourcing should be over by now.
It was pretty much politics to begin with. The real question now is not "How do we stop outsourcing?" but "How do we use outsourcing to enhance competitiveness in what is, and forever will be, a global marketplace?"
Of course, outsourcing has not been painless: layoffs hurt. But they have to be seen as part of a broader picture, one in which outsourcing is not only integral to the world economy, it's good for our own economies.
Integral because economies always respond to consumer demands. People have come to expect the lowest price and the highest quality in one package . . . and companies can only deliver that by moving around the world to capture cost advantages and innovative minds.
If you look at the impact of all this on the US, for instance, it's pretty hard to criticise. Since mid-2003, the US economy has grown about 20%. That's by more than $2.2 trillion . . . equal to the size of the total economy of China. Seven million jobs have been added.
Wage growth has accelerated from 1.5% in early 1994 to more than 4% in the last year.
These statistics, you can be sure, mean that the opponents of outsourcing (many of whom disappeared into the woodwork even before the 2004 election) will not be out there in the 2006 campaign.
Those foes had predicted that jobs in the American technology sector would migrate in huge numbers. In fact, tech jobs have increased 17% from their pre-bubble 1999 level.
No wonder most politicians now tout the overall benefits of an integrated global system. If there is a problem with the US economy right now, it is not the loss of jobs because of outsourcing, it is the difficulty filling vacancies for skilled jobs because of immigration restrictions.
Indeed, if you really want to find a way to make the US economy . . . or those of other western countries . . .
more competitive, it would be to raise the limits on visas for certain categories of skilled workers, making it easier for educated foreign workers to enter and work.
Ideally, the whole skilled worker visa programme in the US could be replaced by a permanent Green Card system, which would draw skilled workers into a more positive, long-term relationship with the American culture . . . and ultimately build a better economic future for all of us.
So forget outsourcing. America's labour challenge today is talent insourcing.
Q
I am a 29-year-old biochemist who works in a small company founded by my father 32 years ago. We haven't grown for some time, and I worry we could disappear altogether. My father and I have no management experience and can't seem to make our dreams come true. Will it help if I get an MBA or update my technical knowledge?
Marcio Luz de Oliveira Jr, Vitoria, Brazil.
Unlikely. Your problem is too big and time is too short. Instead, you need to accept the fact that you have reached a moment of truth juncture that comes in the evolution of many start-up and family-run ventures. A unique technology or product, plus passion and momentum, can take you only so far. Now, you need help -- from the outside.
Don't panic. Get out there and find a star chief executive. Yes, that step can be an anathema for owners and entrepreneurs in your situation, but it usually only hurts at the beginning as you iron out new roles and relationships. After that, outsiders . . . with their experience and hunger for change . . . may well find the route to the growth that has eluded you.
Incidentally, you are in a very fortunate position. The star you need could come from your own industry. "Big Pharma" is having its own growth problems and there are lots of talented executives who would likely jump at the chance to transform a floundering family-operated biotech company.
Of course, to attract such a change agent, you will need to give something up. You and your father may have to let go of daily operations, hiring and strategic planning. You will also have to let go of some equity. You simply cannot reel in a great outside chief executive without giving him or her a piece of the action. The good news is that, if your new star does the job well, you all win, financially and otherwise, as the company thrives.
Letting go can be scary, but there's really nothing to fear, since you and your father will retain majority control. Just be sure to use that control judiciously.
Remember, the plan is to hire a star not to obey you but to save you!
Jack and Suzy Welch are the authors of the international best-seller, Winning. They are eager to hear about your career dilemmas and challenges at work, and look forward to answering your questions in future columns. You can email them questions at Winning@nytimes. com. Please include your name, occupation, city and country.
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