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traditional ten…course Chinese dinner at a local hotel; the mayor told me how far 
Dalian has come and just where he intends to take it。 〃We have twenty…two universities 
and colleges with over two hundred thousand students in Dalian;〃 he explained。 More 
than half those students graduate with engineering or science degrees; and even those 
who don't; those who study history or literature; are still being directed to spend 
a year studying Japanese or English; plus computer science; so that they will be 
employable。 The mayor estimated that more than half the residents of Dalian had access 
to the Internet at the office; home; or school。 
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〃The Japanese enterprises originally started some data processing industries here;〃 
the mayor added; 〃and with this as a base they have now moved to R & D and software 
development。。。 In the past one or two years; the software companies of the U。S。 are 


also making some attempts to move outsourcing of software from the U。S。 to our city 。 。 。 
We are approaching and we are catching up with the Indians。 Exports of software 
products 'from Dalian' have been increasing by 50 percent annually。 And China is now 
becoming the country that develops the largest number of university graduates。 Though 
in general our English is not as competent as that of the Indian people; we have a 
bigger population; 'so' we can pick out the most intelligent students who can speak 
the best English。〃 
Are Dalian residents bothered by working for the Japanese; whose government has still 
never formally apologized for what the wartime Japanese government did to China? 
〃We will never forget that a historical war occurred between the two nations;〃 he 
answered; 〃but when it comes to the field of economy; we only focus on the economic 
problems…especially if we talk about the software outsourcing business。 If the U。S。 
and Japanese companies make their products in our city; we consider that to be a good 
thing。 Our youngsters are trying to learn Japanese; to master this tool so they can 
compete with their Japanese counterparts to successfully land high…salary positions 
for themselves in the future。〃 
The mayor then added for good measure; 〃My personal feeling is that Chinese youngsters 
are more ambitious than Japanese or American youngsters in recent years; but I don't 
think they are ambitious enough; because they are not as ambitious as my generation。 
Because our generation; before they got into university and colleges; were sent to 
distant rural areas and factories and military teams; and went through a very hard 
time; so in terms of the spirit to overcome and face the hardships; 'our generation 
had to have more ambition' than youngsters nowadays。〃 
Mayor Xia had a charmingly direct way of describing the world; and although some of 
what he had to say gets lost in translation; he gets it…and Americans should too: 
〃The rule of the market economy;〃 this 

Communist official explained to me; 〃is that if somewhere has the richest human 
resources and the cheapest labor; of course the enterprises and the businesses will 
naturally go there。〃 In manufacturing; he pointed out; 〃Chinese people first were 
the employees and working for the big foreign manufacturers; and after several years; 
after we have learned all the processes and steps; we can start our own firms。 Software 
will go down the same road 。 。 。 First we will have our young people employed by the 
foreigners; and then we will start our own companies。 It is like building a building。 
Today; the U。S。; you are the designers; the architects; and the developing countries 
are the bricklayers for the buildings。 But one day I hope we will be the architects。〃 
I just kept exploring…east and west。 By the summer of 2004;1 was in Colorado on 
vacation。 I had heard about this new low…fare airline called JetBlue; which was 
launched in 1999。 I had no idea where they operated; but I needed to fly between 
Washington and Atlanta; and couldn't quite get the times I wanted; so I decided to 
call JetBlue and see where exactly they flew。 I confess I did have another motive。 
I had heard that JetBlue had outsourced its entire reservation system to housewives 
in Utah; and I wanted to check this out。 So I dialed JetBlue reservations and had 
the following conversation with the agent: 


〃Hello; this is Dolly。 Can I help you?〃 answered a grandmotherly voice。 
〃Yes; I would like to fly from Washington to Atlanta;〃 I said。 〃Do you fly that route?〃 
〃No; I'm sorry we don't。 We fly from Washington to Ft。 Lauderdale;〃 said Dolly。 
〃How about Washington to New York City?〃 I asked。 
〃I'm sorry; we don't fly that route。 We do fly from Washington to Oakland and Long 
Beach;〃 said Dolly。 
〃Say; can I ask you something? Are you really at home? I read that JetBlue agents 
just work at home。〃 
〃Yes; I am;〃 said Dolly in the most cheerful voice。 (I later confirmed with JetBlue 
that her full name is Dolly Baker。) 〃I am sitting in my office 
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upstairs in my house; looking out the window at a beautiful sunny day。 Just five 
minutes ago someone called and asked me that same question and I told them and they 
said; 'Good; I thought you were going to tell me you were in New Delhi。'〃 
〃Where do you live?〃 I asked。 
〃Salt Lake City; Utah;〃 said Dolly。 〃We have a two…story home; and I love working 
here; especially in the winter when the snow is swirling and I am up here in the office 
at home。〃 
〃How do you get such a job?〃 I asked。 
〃You know; they don't advertise;〃 said Dolly in the sweetest possible voice。 〃It's 
all by word of mouth。 I worked for the state government and I retired; and 'after 
a little while' I thought I have to do something else and I just love it。〃 
David Neeleman; the founder and CEO of JetBlue Airways Corp。; has a name for all this。 
He calls it 〃homesourcing。〃 JetBlue now has four hundred reservation agents; like 
Dolly; working at home in the Salt Lake City area; taking reservations…in between 
babysitting; exercising; writing novels; and cooking dinner。 
A few months later I visited Neeleman at JetBlue's headquarters in New York; and he 
explained to me the virtues of homesourcing; which he actually started at Morris Air; 
his first venture in the airline business。 (It was bought by Southwest。) 〃We had 250 
people in their homes doing reservations at Morris Air;〃 said Neeleman。 〃They were 
30 percent more productive…they take 30 percent more bookings; by just being happier。 
They were more loyal and there was less attrition。 So when I started JetBlue; I said; 
'We are going to have 100 percent reservation at home。'〃 
Neeleman has a personal reason for wanting to do this。 He is a Mormon and believes 
that society will be better off if more mothers are able to stay at home with their 
young children but are given a chance to be wage earners at the same time。 So he based 
his home reservations system in Salt Lake City; where the vast majority of the women 
are Mormons and many are stay…at…home mothers。 Home reservationists work twenty…five 
hours a week and have to come into the JetBlue regional office in Salt Lake City for 
four hours a month to learn new skills and be brought up to date on what is going 
on inside the company。 
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〃We will never outsource to India/' said Neeleman。 〃The quality we can get here is 
far superior 。 。 。 'Employers' are more willing to outsource to India than to their 


own homes; and I can't understand that。 Somehow they think that people need to be 
sitting in front of them or some boss they have designated。 The productivity we get 
here more than makes up for the India 'wage' factor。〃 
A Los Angeles Times story about JetBlue (May 9; 2004) noted that 〃in 1997; 11。6 million 
employees of U。S。 companies worked from home at least part of the time。 Today; that 
number has soared to 23。5 million…16% of the American labor force。 (Meanwhile; the 
ranks of the self…employed; who often work from home; have swelled during the same 
period…to 23。4 million from 18 million。) In some eyes; homesourcing and outsourcing 
aren't so much competing strategies as they are different manifestations of the same 
thing: a relentless push by co

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