Outsourcing to intelligent computers Thursday, June 24, 2004 Look past the impacts of outsourcing. A recent report projects that the use of computers with embedded intelligence technologies -- such as voice recognition -- will begin displacing lower end customer service jobs. The conclusion: technology, not outsourcing, is the biggest threat to jobs. You can already see this trend. Call directory assistance. Chances are, a computer will answer the phone and ask you for a number. (A customer service person actually looks up your number, but this task soon will be automated as voice recognition gets better.) According to the report, in the past ten years, about ten million manufacturing jobs involving physical labor and repetitive activities worldwide were lost due to machines replacing humans. In the next wave, the employment threat involves the substitution of embedded intelligence for many first-level jobs in service industries. The impact will generate a net loss of customer service, help desk, directory assistance, and related customer support positions. As the author of the report notes, "Looking forward, we don't really see the big threat in the long run being outsourcing to India. We see the real threat from outsourcing to intelligent [computers]." Read more. These technologies will shift the skill mix needed to support a specific business activity. The overall impact will be higher productivity levels. This trend will continue to place pressure on the low end of the workforce. People wilth lower skills will see their wages continue to stagnate or erode. Real wages for high school graduates, for example, have not increased in the past decade. This trend will continue. The result: a high school education is no longer a ticket to the middle class. To ern middle class wages (above $12 per hour) young people need post secondary education. posted by Ed Morrison |		This work is licensed under a Creative Commons License. links Some Background on EDPro Weblog The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it. One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information. So, spread the word...Share the knowledge. Tell a friend about EDPro Weblog. If you are using a news reader, here is the link to syndicate this site: Here's the link if you are a bloglines subscriber: Speaking and workshops on Open Source Economic Development As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking. Background on Ed Morrison Download some background information on me here.

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