Friday, February 02, 2007

MSM loves outsourcing?

How rich! From QandO:
Your news:
In a windowless office in central Bangalore, dozens of employees are arriving to work on the night shift.

They are journalists employed by the world's biggest news agency, Reuters.

Their job is to cover US financial news.

And they are working overnight so that they can report company news live as it happens on the New York Stock Exchange - from India.

But why in the world is Reuters covering Wall Street from Bangalore?

In a word: salaries.

These Indian financial journalists can be employed by Reuters for a fraction of the cost of employing a journalist at their New York office.

Reuters Editor-in-Chief, David Schlesinger, says that the move meant that they could broaden their coverage of US companies without incurring crippling costs.
Welcome to the global economy and the facts of economic life. Labor cost remains a cost of doing business and is reflected in the cost of goods sold. In an increasingly competitive environment, moves like this make sense. A predominantly English speaking country with journalists who will work for much less than journalists in the US coupled with almost instant communication and access to the same info and their US peers can easily replace the US workers.

Of course David Schlesinger puts as good a face on it as he can and notes that instead of laying off people in the NY office, they can be assigned to different types of stories and "broaden their coverage" of the news.

So despite editorials in major dailies lamenting outsourcing in general, it seems that the news industry has suddenly discovered its benefits. Remember that the next time you read a story in the NYT or WaPo agreeing with a politician condemning outsourcing.

It may have been written in India.
"Good enough for me, but not for thee", MSM?