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Protectionist Backlash Against Outsourcing
The Associated Chambers of Commerce and Industry of India ^ | July 2003 | ASSOCHAM

Posted on 07/30/2003 9:44:14 PM PDT by RockyMtnMan

ASSOCHAM Bulletin July 2003 (The Associated Chambers of Commerce and Industry of India)

PROTECTIONIST BACKLASH AGAINST OUTSOURCING IN THE U.S AND EUROPE

What should be India’s Response?

ASSOCHAM REPRESENTATION TO THE MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY

The proponents of complete liberalization of trade and full market access have often sited economic efficiency to substantiate their viewpoint. Multilateral trade bodies like WTO are also based on these non-discriminatory principles. Ironically, the recent criticism of outsourcing, a concept based on efficiency criterion, comes from the patrons of trade liberalization i.e. U.S and U.K.

Form of the outsourcing backlash

Implication: Anti-Outsourcing Bills:

L-1 Visa Bill:

Reaction of the Indian ITES Industry

ASSOCHAM had forwarded a 4-point strategy to ITES industry in the survey on what could be India’s response to the proposed anti-BPO legislations in the U.S. and U.K. An analysis of the survey responses shows:

ASSOCHAM initiated a discussion within its BPO Steering Committee on what could be India’s multi-faceted strategy on this subject. Accordingly, an 8-point strategy model is presented below:

The 8-Point Strategy Model



TOPICS: Business/Economy; Foreign Affairs; Government
KEYWORDS: backlash; india; offshoring; outsourcing
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To: RockyMtnMan
Most sales folks bypass techies and go straight to the check writer only to learn later the techies killed the deal because it didn't match their requirements.

Not the good ones.

But, I'm not going to argue with you. I'm confident in my career. Products are largely commodities in today's market. "Check-writers" buy value, ROI, perception, and company reliability and viability.

I've moved from one company to another, both selling performance management software, and displaced the product I sold previously.

The decision-maker trusted me; he could care less what I was selling.

61 posted on 07/31/2003 8:47:49 AM PDT by sinkspur ("Boy, watch that knife!'" Rev. Capt. Samuel Johnston Clayton in "The Searchers")
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To: sinkspur
Sounds like my company could use a guy like you. Our software has a significant ROI and the industry analysts are fawning over our value proposition.
62 posted on 07/31/2003 8:50:29 AM PDT by RockyMtnMan
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To: RockyMtnMan
The reason they don't have any is because they lack the creativity, perseverance, ingenuity and overall skills we have developed here in the USA.

You really should stop. TRW will tell you that the Indian developers implementing SAP globally are BETTER than their American counterparts, outwork them, and understand requirements better.

Why should companies trust their develop efforts to a country who has no track record? Sounds like shareholders should be concerned about the long-term viability of their investments.

Shareholders are concerned about companies remaining competitive, and Indian development is enabling them to achieve that objective.

63 posted on 07/31/2003 8:51:02 AM PDT by sinkspur ("Boy, watch that knife!'" Rev. Capt. Samuel Johnston Clayton in "The Searchers")
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To: sweetjane
Big time lefties feel that leftist policies only apply to everyone else. How many congresscritters' kids go to public schools? And then there is the opposition to windmill power in the bay if it is in the view of the democrats. The Texas Dems shirking their duties of elected officials. It's always a case of do as I say, not as I do.
64 posted on 07/31/2003 8:53:49 AM PDT by freeangel (freeangel)
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To: sinkspur
TRW will tell you that the Indian developers implementing SAP globally are BETTER than their American counterparts, outwork them, and understand requirements better.

I'll ask my cousin he works for TRW.

Shareholders are concerned about companies remaining competitive, and Indian development is enabling them to achieve that objective.

They will be competitive in the short-term but in the long term it will bite them hard. The "working-class" is also the investment class, without investment stock prices will fall and companies will be short of capital.

65 posted on 07/31/2003 8:55:38 AM PDT by RockyMtnMan
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To: sinkspur
”Listen, bub, NOTHING happens in this country until somebody sells something.”

LOL! That’s the honest to God truth! You should also add that when you are good at selling the only time you will run out of work is when there is nothing left to sell.

If my industry collapses I will go sell something else. If I can’t sell something in the US I will sell it overseas. If no company wants to employ me, I will buy things on my own and sell them for more than I paid.

66 posted on 07/31/2003 9:31:46 AM PDT by SouthParkRepublican
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To: RockyMtnMan
There is nothing that can stop this. It is not just that the foreigners are cheaper. Based on what I have seen coming out of CS depts in this country, it will soon be the case that only foreigners will be able to do the work. Already it is well-known that IIT in Madras is more difficult to get into than MIT.
67 posted on 07/31/2003 9:46:50 AM PDT by eniapmot
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To: Dissident1
Not true.

We make the world's most popular dog food.

68 posted on 07/31/2003 9:49:52 AM PDT by eniapmot
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To: RockyMtnMan
”Oh, and you've got to know a bit about cost of money and ROI today to close deals”

As well as RFP’s, RFQ’s, needs evaluation, presentation skills, markups, budgets, third party billing, invoicing, non-accrual billing, customs, international shipping, interstate taxation of goods and services and so on and so on...

Anyone who is considering sales as a career should start with a commission vs. draw pay structure. You learn pretty quickly whether or not you’re cut out for it.

69 posted on 07/31/2003 9:51:04 AM PDT by SouthParkRepublican
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To: sinkspur
Writing code in Java is like cutting someone's lawn. It's easy to do, as long as you know how to crank a lawnmower.

I am not sure what you mean by that. What I do know is that I have hired people who had a full two semesters of Java and presumably could "write code in Java," but who couldn't write the programs I wanted. There is no language that is so difficult that one can't learn the basic syntax. What counts is your grasp of algorithms and how to put simple code together to make a real program.

70 posted on 07/31/2003 9:55:49 AM PDT by eniapmot
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To: superloser
re: Legislation can stop this trend by adding a tax on foreign labor. )))

Worth a try--at least it'd level the field a bit. India doesn't have workman's comp, lawsuit craziness--we do. Or, perhaps a tariff leveled on the finished goods. We could also try getting rid of our legislated competitive disadvantages. Either that, or tariffs.

71 posted on 07/31/2003 9:56:34 AM PDT by Mamzelle
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Comment #72 Removed by Moderator

To: RockyMtnMan
Without products their can be no sales, this isn't a chicken-egg conundrum, one always comes before the other.

Ever heard of "vaporware"?

73 posted on 07/31/2003 10:01:38 AM PDT by dfwgator
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To: sinkspur
The decision-maker trusted me; he could care less what I was selling.

BINGO! You just said the magic word, "trust." Great book called "The Internet Weather" that talks about the reality of today. There are basically four value propositions: Time, Truth, Privacy and Trust, that basically remain the same no matter what happens. Time, truth and privacy can all be purchased and managed by individual effort. Trust, on the other hand can only be built over time. In a world where it is increasingly easier to get quick access to information (and disinformation) and knowledge, and those barriers to entry are quicker knocked down, the people and businesses that will succeed in the long run are not going to be the smartest or the most innovative, they are the ones that can build the most trust.

And in my opinion, that is where offshoring is most vulnerable, in the trust factor. Who is coding your mission -critical applications? Could they actually be Al-Qaeda agents masquerading as software developers intentionally placing "trojan horses" in the application? Eventually the offshore companies are going to get called on this. Can they reassure the companies that indeed they screen their employees?

74 posted on 07/31/2003 10:18:50 AM PDT by dfwgator
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To: freeangel
Of course God is responsible for Christ's crucifixion and resurrection. The Pharisees and Romans who made it happen were purely mechanical devices of God's sovereign will and man's free will. The point in my response is that there are historical references available, other than the Gospels. Some people would like to see the evidence. What the book I was quoting does is offer additional historical evidence for those who need it. I wholeheartedly agree that Jesus' atonement is for all of us who are willing to accept it. Doesn't matter whether we are Jews, Romans, whatever.

Seeing into Pilate's life at the time does not affect my spirituality or religion.

It is interesting to note, of course, that Rome, where Christians were so persecuted early in the Church, has been the home to the Catholic church. Something happened there.

I'm of the protestant persuasion, but I love to see God's irony and work in the world. It really hits home.
75 posted on 07/31/2003 9:36:23 PM PDT by sweetjane
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To: freeangel
Oops, I accidently just sent the wrong response to your message. Please excuse me!

But, at the same time, I know where your coming from about lefties.
76 posted on 07/31/2003 9:39:36 PM PDT by sweetjane
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To: RockyMtnMan
Strategy #8: Make a case under various WTO agreements that these bills will act as trade barriers and not allow a fair movement of services. However, the opinion of BPO Steering Committee members and survey responses indicate this option should be used only as a secondary measure.

Note they are now contending how our GOVERNMENTS spends their tax-payer money is a 'trade barrier'. They don't seem to mind that there will be no tax-payers footing the bills for these jobs if we don't protect jobs.

77 posted on 08/10/2003 1:36:30 PM PDT by Paul Ross (A nation which can prefer disgrace to danger is prepared for a master, and deserves one!-A. Hamilton)
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To: RockyMtnMan
Strategy #8: Make a case under various WTO agreements that these bills will act as trade barriers and not allow a fair movement of services. However, the opinion of BPO Steering Committee members and survey responses indicate this option should be used only as a secondary measure.

Note they are now contending how our GOVERNMENTS spends their tax-payer money is a 'trade barrier'. They don't seem to mind that there will be no tax-payers footing the bills for these jobs if we don't protect jobs.

78 posted on 08/10/2003 1:36:30 PM PDT by Paul Ross (A nation which can prefer disgrace to danger is prepared for a master, and deserves one!-A. Hamilton)
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To: RockyMtnMan

This is the beginning of the end for the "working class" unless government intervenes.>>>>>

I would say you are behind the curve, it is more like the tail end of the heyday of the American working class.


79 posted on 07/21/2005 8:56:01 AM PDT by RipSawyer
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To: RipSawyer

RipVanWinkle


80 posted on 07/21/2005 9:00:05 AM PDT by HiTech RedNeck (No wonder the Southern Baptist Church threw Greer out: Only one god per church! [Ann Coulter])
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