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The Offshoring of Engineering: Facts, Unknowns, and Potential Implications (2008)

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42
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The Offshoring of Engineering: Facts, Unknowns, and Potential Implications

Additional Reading

Amiti, M., and S.-J. Wei. 2004. Fear of Service Outsourcing: Is it Justified? International Monetary Fund Research Paper WP/04/186. October. Washington, D.C.: IMF. Available online at www.imf.org/external/pubs/ft/wp/2004/wp04186.pdf.

This literature review takes a positive view of offshoring.

Antràs, P., L. Garicano, and E. Rossi-Hansberg. 2005. Offshoring in a Knowledge Economy. National Bureau of Economic Research Working Paper 11094. January. Cambridge, Mass.: NBER. Available online at http://papers.nber.org/papers/w11094.pdf.

Uses a two-country model of offshoring to explain impacts on wages, consumption, and trade.

Arora, A., and A. Gambardella. 2004. Globalization of the Software Industry: Perspectives and Opportunities for Developed and Developing Countries. National Bureau of Economic Research Working Paper 10538. June. Cambridge, Mass: NBER. Available online at http://papers.nber.org/papers/w10538.pdf.

Concludes that offshoring is unlikely to pose a threat to long-term U.S. leadership in S&T.

Bardhan, A.D., and D.M. Jaffee. 2005. R&D, Innovation, and Offshoring. Fisher Center for Real Estate and Urban Economics, University of California at Berkeley Research Report 1005. Available online at http://repositories.cdlib.org/cgi/viewcontent.cgi?article=1035&context=iber/fcreue.

Uses a firm survey to explore offshoring in the context of the historical development of industrial R&D.

BusinessWeek Online Feature on Commerce Department Offshoring Study. October 2005. Describes a Commerce Department study where the original staff version critical of offshoring was revised by political appointees to portray offshoring as an unalloyed good. Available online at http://www.businessweek.com/magazine/content/05_42/c3955025.htm#ZZZ24WZQGEE.

Collins, S.M., and L. Brainard, eds. 2006. Offshoring White-Collar Work—The Issues and the Implications: Brookings Trade Forum 2005. Washington, D.C.: Brookings Institution. Available online at http://www.brookings.edu/press/books/brookingstradeforum2005.htm.

The 2005 conference and forthcoming conference volume focus on offshoring. Committee member Lori Kletzer has a paper in this volume that is listed separately under coauthor J. Bradford Jensen.

Criscuolo, C., J.E. Haskel, and M.J. Slaughter. 2005. Global Engagement and the Innovation Activities of Firms. NBER Working Paper 11479. June. Cambridge, Mass.: National Bureau of Economic Research. Available online at http://nber15.nber.org/papers/w11479.pdf.

Firms that export and MNCs are better innovators.

Dedrick, J., and K.L. Kraemer. 2005. Is Production “Pulling” Knowledge Work to China? A Study of the Global Computer Industry. Personal Computer Industry Center Working Paper. University of California, Irvine. Available online at http://www.pcic.merage.uci.edu/pubs/2005/isProductionPulling.pdf.

Dutta, A., and R. Roy. 2005. Offshore Outsourcing: Counteracting Forces and Their Dynamic Effects. Proceedings of the 38th Hawaii International Conference on Systems Sciences. New York: Institute of Electrical and Electronics Engineers. Available online at http://ieeexplore.ieee.org/iel5/9518/30166/01385770.pdf?tp=&arnumber=1385770&isnumber=30166.

Models outsourcing in a two-country context.

Economist Intelligence Unit. 2004. Scattering the seeds of invention: the globalisation of research and development. White paper sponsored by Scottish Development International. September. Available online at http://graphics.eiu.com/files/ad_pdfs/RnD_GLOBILISATION_WHITEPAPER.pdf.

Overview of the globalization of R&D.

Florida, R. 2005. The world is spikey. Atlantic Monthly (October): 48–51. Available online at http://www.creativeclass.org/acrobat/TheWorldIsSpiky.pdf.

Frames globalization of innovation in terms of “have” and “have-not” regions.

Florman, S. 2005. My Profession and the Nation: A Worrisome Confrontation. The Bent of Tau Beta Pi. Summer. Available online at http://www.tbp.org/pages/publications/BENTFeatures/FlormanSu05.pdf.

Global Insight Inc. 2004. Executive Summary: The Comprehensive Impact of Offshore IT Software and Services Outsourcing on the U.S. Economy and the IT Industry. Arlington, Va.: Information Technology Association of America. Available online at www.itaa.org/itserv/docs/execsumm.pdf.

This industry association-commissioned consultant’s report says that the benefits outweigh the costs.

Page
42
Front Matter (R1-R10)
Executive Summary (1-4)
Part I: Consensus Report, 1 Introduction (5-9)
2 Offshoring and Engineering: The Knowledge Base and Issues (10-19)
3 Effects of Offshoring on Specific Industries (20-32)
4 Workshop Findings and Discussion (33-41)
Additional Reading (42-44)
Part II: Commissioned Papers and Workshop Presentations, Commissioned Papers, Implications of Globalization for Software Engineering--Rafiq Dossani and Martin Kenney (45-48)
Implications of Globalization for Software Engineering--Rafiq Dossani and Martin Kenney (49-68)
The Changing Nature of Engineering in the Automotive Industry--John Moavenzadeh (69-102)
Offshoring in the Pharmaceutical Industry--Mridula Pore, Yu Pu, Lakshman Pernenkil, and Charles L. Cooney (103-124)
Impact of Globalization and Offshoring on Engineering Employment in the Personal Computing Industry--Jason Dedrick and Kenneth L. Kraemer (125-136)
Offshoring of Engineering Services in the Construction Industry--John I. Messner (137-148)
Semiconductor Engineers in a Global Economy--Clair Brown and Greg Linden (149-178)
Workshop Presentations, Implications of Offshoring for Engineering Management and Engineering Education--Anne Stevens (179-183)
An Academic Perspective on the Globalization of Engineering--Charles M. Vest (184-190)
Keynote Talk on the Globalization of Engineering--Robert Galvin (191-194)
Software-Related Offshoring--Alfred Z. Spector (195-201)
Implications of Offshoring for the Engineering Workforce and Profession--Ralph Wyndrum (202-208)
Industry Trends in Engineering Offshoring--Vivek Wadhwa (209-212)
Offshoring in the U.S. Telecommunications Industry--Theodore S. Rappaport (213-218)
Appendix A: Workshop Agenda (219-222)
Appendix B: Workshop Participants (223-228)
Appendix C: Biographical Information (229-230)

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The Offshoring of Engineering: Facts, Unknowns, and Potential Implications Additional Reading Amiti, M., and S.-J. Wei. 2004. Fear of Service Outsourcing: Is it Justified? International Monetary Fund Research Paper WP/04/186. October. Washington, D.C.: IMF. Available online at www.imf.org/external/pubs/ft/wp/2004/wp04186.pdf. This literature review takes a positive view of offshoring. Antràs, P., L. Garicano, and E. Rossi-Hansberg. 2005. Offshoring in a Knowledge Economy. National Bureau of Economic Research Working Paper 11094. January. Cambridge, Mass.: NBER. Available online at http://papers.nber.org/papers/w11094.pdf. Uses a two-country model of offshoring to explain impacts on wages, consumption, and trade. Arora, A., and A. Gambardella. 2004. Globalization of the Software Industry: Perspectives and Opportunities for Developed and Developing Countries. National Bureau of Economic Research Working Paper 10538. June. Cambridge, Mass: NBER. Available online at http://papers.nber.org/papers/w10538.pdf. Concludes that offshoring is unlikely to pose a threat to long-term U.S. leadership in S&T. Bardhan, A.D., and D.M. Jaffee. 2005. R&D, Innovation, and Offshoring. Fisher Center for Real Estate and Urban Economics, University of California at Berkeley Research Report 1005. Available online at http://repositories.cdlib.org/cgi/viewcontent.cgi?article=1035&context=iber/fcreue. Uses a firm survey to explore offshoring in the context of the historical development of industrial R&D. BusinessWeek Online Feature on Commerce Department Offshoring Study. October 2005. Describes a Commerce Department study where the original staff version critical of offshoring was revised by political appointees to portray offshoring as an unalloyed good. Available online at http://www.businessweek.com/magazine/content/05_42/c3955025.htm#ZZZ24WZQGEE. Collins, S.M., and L. Brainard, eds. 2006. Offshoring White-Collar Work—The Issues and the Implications: Brookings Trade Forum 2005. Washington, D.C.: Brookings Institution. Available online at http://www.brookings.edu/press/books/brookingstradeforum2005.htm. The 2005 conference and forthcoming conference volume focus on offshoring. Committee member Lori Kletzer has a paper in this volume that is listed separately under coauthor J. Bradford Jensen. Criscuolo, C., J.E. Haskel, and M.J. Slaughter. 2005. Global Engagement and the Innovation Activities of Firms. NBER Working Paper 11479. June. Cambridge, Mass.: National Bureau of Economic Research. Available online at http://nber15.nber.org/papers/w11479.pdf. Firms that export and MNCs are better innovators. Dedrick, J., and K.L. Kraemer. 2005. Is Production “Pulling” Knowledge Work to China? A Study of the Global Computer Industry. Personal Computer Industry Center Working Paper. University of California, Irvine. Available online at http://www.pcic.merage.uci.edu/pubs/2005/isProductionPulling.pdf. Dutta, A., and R. Roy. 2005. Offshore Outsourcing: Counteracting Forces and Their Dynamic Effects. Proceedings of the 38th Hawaii International Conference on Systems Sciences. New York: Institute of Electrical and Electronics Engineers. Available online at http://ieeexplore.ieee.org/iel5/9518/30166/01385770.pdf?tp=&arnumber=1385770&isnumber=30166. Models outsourcing in a two-country context. Economist Intelligence Unit. 2004. Scattering the seeds of invention: the globalisation of research and development. White paper sponsored by Scottish Development International. September. Available online at http://graphics.eiu.com/files/ad_pdfs/RnD_GLOBILISATION_WHITEPAPER.pdf. Overview of the globalization of R&D. Florida, R. 2005. The world is spikey. Atlantic Monthly (October): 48–51. Available online at http://www.creativeclass.org/acrobat/TheWorldIsSpiky.pdf. Frames globalization of innovation in terms of “have” and “have-not” regions. Florman, S. 2005. My Profession and the Nation: A Worrisome Confrontation. The Bent of Tau Beta Pi. Summer. Available online at http://www.tbp.org/pages/publications/BENTFeatures/FlormanSu05.pdf. Global Insight Inc. 2004. Executive Summary: The Comprehensive Impact of Offshore IT Software and Services Outsourcing on the U.S. Economy and the IT Industry. Arlington, Va.: Information Technology Association of America. Available online at www.itaa.org/itserv/docs/execsumm.pdf. This industry association-commissioned consultant’s report says that the benefits outweigh the costs.

OCR for page 43
The Offshoring of Engineering: Facts, Unknowns, and Potential Implications Gupta, A.K., and D.E. Westney, eds. 2003. Smart Globalization: Designing Global Strategies, Creating Global Networks. Hoboken, N.J.: Jossey-Bass. Available online at http://www.amazon.com/gp/product/0787965324/qid=1133984042/sr=1-2/ref=sr_1_2/002-9456996-1835242?s=books&v=glance&n=283155. A compendium of recent global business strategy articles. Lynn, L., and H. Salzman. 2005. The “New” Globalization of Engineering: How the Offshoring of Advanced Engineering Affects Competitiveness and Development. Paper presented at the 21st European Group for Organizational Studies Colloquium. June. Available online at http://www.urban.org/UploadedPDF/411226_new_globalization.pdf. Discussion of engineering offshoring in the context of business innovation and corporate strategy literature. Markusen, J. 2005. Modeling the Offshoring of White-Collar Services: From Comparative Advantage to the New Theories of Trade and FDI. NBER Working Paper 11827. Cambridge, Mass.: NBER. Available online at http://nber15.nber.org/papers/w11827.pdf. Draws on a number of modeling approaches to analyze offshoring. Mataloni, R.J. Jr. 2005. U.S. Multinational Companies: Operations in 2003. Survey of Current Business. Available online at http://www.bea.gov/bea/ARTICLES/2005/07July/0705_MNCs.pdf. Mitra, D., and P. Ranjan. 2005. Y2K and Offshoring: The Role of External Economies and Firm Heterogeneity. NBER Working Paper 11718. Cambridge, Mass.: NBER. Uses economic modeling to explain how Y2K served as a catalyst for IT offshoring. Available online at http://nber15.nber.org/papers/w11718.pdf. OECD (Organization for Economic Cooperation and Development). 2005. OECD Science, Technology and Industry Scorecard 2005: Towards a Knowledge-Based Economy. Paris: OECD. Available online at http://hermia.sourceoecd.org/vl=2279336/cl=27/nw=1/rpsv/scoreboard/. Special focus on globalization of R&D. Parker, G.G., and E.G. Anderson Jr. 2002. From Buyer to Integrator: The Transformation of the Supply-Chain Manager in the Vertically Disintegrating Firm. Production and Operations Management 11(1): 75–91. Available online at http://ggparker.net/papers/SCIntegratorPOMpages.pdf.

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