Posted on 10/03/2004 4:22:37 PM PDT by Willie Green
For education and discussion only. Not for commercial use.
New Delhi, Oct 3 (UNI) Top 100 global financial companies will offshore jobs worth over 200 billion dollars to India and other countries in 2005, says a new research by Deloitte and Touche.
''Financial institutions are moving business functions to India because they are recognising compelling cost advantages and they are able to lock in savings and manage risks effectively,'' Mr Peter Lowes, the US leader of Deloitte's outsourcing practice, said.
In 2005, Deloitte expects the top 100 global financial companies to offshore a total of 210 billion dollars of their operating costs, saving on average, 700 million dollars.
The survey, covering 43 financial services companies around the world, suggests that the number of firms taking the offshore option increased by 38 per cent last year.
Deloitte also estimated that by 2010, 20 per cent of the operating costs of global financial institutions would be centred abroad, reducing costs by about 37 per cent.
Analyst Datamonitor also said earlier this year that outsourced, offshore call centre positions will more than double by 2007 to 241,000, from close to 110,000 at the end of last year.
However, the Deloitte survey said most of the companies sending jobs to India and other countries had concerns about risk management. Half of those surveyed had contingency plans if the offshore operation went wrong.
''Risks related to government change and policy changes are prompting companies to have a multiple-country strategy, which makes it easy for them to migrate services if there is a problem in any operation,'' Mr Lowes said.
Apart from India, other countries with high proficiency in English are emerging as popular destinations, including Malaysia and the Philippines, the report added.
That's easy to say if it is not your money or job.
The only reason why the auto manufacturing jobs are returning to the U.S. is because of the quotas that stop cars at the border from coming in. If the cars are built here, they are exempt from the quotas.
We should do as much for the electronics and software industries as we have for the automotive guys.
Who died and put you in charge of supply and demand?
I see that you are still posting this crap, Willie.
Some things never change.
Does that big "L" on your forehead influence you? Mr. 54 year old, 6'4 engineer? (Yeah, right)
The international economic accounts encompass the international transactions accounts (balance of payments) and the international investment positions accounts (the accumulated stocks of U.S.-owned assets abroad and of foreign-owned assets in the United States), as well as estimates of U.S. direct investment abroad and foreign direct investment in the United States.
http://www.bea.gov/bea/about/AcctIntros/Overview_Intl.htm
http://www.informationweek.com/shared/printableArticle.jhtml?articleID=47902662
As with 95% of Wal-Mart's IT projects, the Information Systems Division will manage the work from programming to process reengineering, relying very little on commercial software and not at all on outsourcing. Indeed, programmers are right now putting the finishing touches on intelligent RFID middleware to handle the influx of data to be generated as the first wave of 100-plus suppliers begins sending RFID-tagged cases and pallets of products through the doors of Wal-Mart's Sanger, Texas, distribution center. Yet Wal-Mart spends below the average on IT for retailers--less than 1% of worldwide revenue, which reached $256.3 billion in 2003. "The strength of this division is, we are doers and do things faster than lightning," says Dillman, the owner of a Mercedes SLK 320 convertible that gives her the opportunity to drive in the fast lane in her private life, too. "We can implement things faster than anyone could with a third party. We run the entire world out of the facilities in this area at a cost that no one can touch," she says. "We'd be nuts to outsource."
It takes a particular kind of conceited, America - centrist view of the world to assume that all of the biggest 100 financial institutions referred to in this report are located in the U.S. It may surprise many to learn that the largest financial institutions in the world, with one or two exceptions are in Europe and the Far East.
When you are talking about shipping financial industry jobs to India, you have to remember that one of the big advantages of India is the large pool of English-speaking people who work for low wages.
To Japan's Mizuho or the Bank of Tokyo-Mitsubishi, this English ability is no advantage at all, and I don't believe that any Japanese financial institutions have any plans to outsource to India. (Do any freepers in Japan's financial services see any move to going this way?)
In fact, having some experience in the area, I would say that such a command of English is only important only to American and English financial companies, and those large financial companies who have a large presence in the U.S. or London. (Do any freepers over in European financial services see it on the ground differently?)
210 billion and you only save 700 million? That's less then .5% not even 1%. The risk and theft compensation alone will eat those savings up, not to mention bad publicity.
Don't forget giving missiles and nukes to Pakistan who is now possibly passing it on to Saudi Arabia and Iran.
The fact that the US lost 100,000+ development jobs. The fact that university programs in IT are 30% off on enrollment, nation wide.
Then why don't they update their skills a little bit and go for an IT auditor job?
I read an article in ComputerWorld two weeks ago that there was a serious shortage of IT auditors, and with the outsourcing going on, most companies were beefing up their IT security staffs.
It's like what happened with buggy whip makers when cars started being built. I'm sure they were freaking out - only to find later that the economy had merely undergone a transition.
Service jobs are almost always less payinng, less skill intensive (thus also open to Mexican take over) and have fewer benefits. Take away the US endless credit system and the whole house of cards collapses. Sooner or later it will happen anyways, as almost all the credit is financed by foreign investment and that has been dieing off from low interest rates.
Actually, it is not that they didn't want to fight, they could no longer breed as quickly as the Germans. While we do this volunterly, they had lead piping to blame (in the Western Empire not the Eastern, which lived 1000 years longer). Also, due to slave labor (read now cheap Mexican labor) the small farmer and businessman became dirt poor and indebted and thus lost his investment in the system and reason to uphold it.
The WTO and other treaties we support have made any argument that "when jobs go abroad, America loses" antiquated. While 1000s of US jobs have been outsourced abroad, 1000s of new manufacturing jobs have been created in the US by foreign companies like Honda, Toyota and Mercedes.
The scary thing is that so many IT jobs have gone abroad because of the Internet, but this is the world we bargained for when we started taking down trade barriers, and I would say that now no President of party can turn the tide. You cannot prevent computer programers in India working for US companies via the Net, if you want to keep the Internet as a global, public domain information "highway". We have to take the good and the bad.
So we (the developed nations) are gradually (and painfully) expanding the world fishery, if you will.
We are ALL involved in some way in the stock and bond markets, everyone benefits when it performs well. Corporations are publically owned, and every shareholder (no, they're not just rich guys in nice suits on Wall Street), employee and all of the businesses they patronize, every retirement account and pension fund benefits. This also creates more venture capital to start more businesses and create more jobs.
We're global and we are all connected. There is no honest way to make an argument for rolling back the tax breaks and trade agreements, for good or bad, we are part of the changes going on and no one can stop it.
And, no I cannot relate to someone who has been down-sized, but we cannot stop what we started a long time ago.
I feel that less govt intervention in business and lower taxes would allow us to reap the benefits from free trade. How much more "compassionate" can we be?
Thinking price only ignores the social cost those prices get you. What is social cost? Why the unemployment, welfare, retraining programs, school lunch programs, higher crime and addiction rates and the police/hospital investments to fight that. The decline in property values, the cost of having to pay debt payments on foreign debt, the cost of losses in tax revenues from salaries paid overseas. You know, all those that you will get to pay for in higher taxes, while you save on cheap chinese plastic crap.
Or we've actually lost jobs before, and realized that it's not the end of the f***ing world.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.