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.
Problem is, that private business insurance costs are picked up by Uncle and so is their defense (diplomatic, military, and law) is also picked up by Uncle. A corporation is not an independent entity, it is a contractual agreement between citizens and their nation and is thus bound on both ends.
First, not everyone can retrain, that is a lie. Half the population has an IQ at or below average. Second, who do you think pays for that retraining? What do they retrain to?
Apparently you don't read or report so well. Following the link you posted, the median incomes show an overall decline across the board from 2000 through 2003, when the real value is displayed in constant dollars (2003 dollars in your linked sample).
sure, we lost jobs to China et al before. But no great nation is built on those who make toys, christmas tree lights, shoes and shirts.
talk to me when IT, semiconductors, and communications equipment are gone.
Ahem, median incomes also showed declines in 1970, 1973-1975, 1979-1981, and 1989-1993.
If you restrict your data to those time periods, it won't look so good.
If, on the other hand, you view the data from 1967 to 2003, the latest recession doesn't look to be any different than the ones that came before, leaving us, as I said, on an upward march, median household income wise.
Ahhh, good point - hadn't thought of that one.
Here in the SF bay area, we lost 300 thousand jobs. I'm talking to you right now. How many TVs are made here in the US? How many VCRs? Those jobs are gone. We never even had a chance to lose the DVD jobs, because the INDUSTRY has moved overseas.
Virtually every IT, communications, and semiconductor company has a majority of employment positions overseas, with negative job growth projected into the next 2 decades. Those jobs are essentially gone. Your job could be next -- and that flush of arrogance you feel right now that says, "I'm much more valuable than that" is exactly what the software engineers and test engineers and design engineers felt just a few short years ago. I guess the only thing to say is, come and talk to us when that happens. There are some plumber apprenticeships opening up with a waiting list of only 200.
They can retrain to be retrainers.
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.
***Those automotive manufacturing jobs only returned to the U.S. by virtue of the tariffs and quotas that keep foreign autos at the shores, protecting that industry. We need to do more to protect the electronics industries. The point that you make actually reinforces what I'm saying.
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.
***Mostly true, but there is plenty of room to maneuver here. We take as much good as we can and attenuate the bad. We can do something to stem the tide of lost jobs and help people during this transition phase. I would prefer to see the tab picked up by the companies that are reaping the most rewards.
So we (the developed nations) are gradually (and painfully) expanding the world fishery, if you will.
***This is nice conceptually, but my experience (plus that of hundreds of thousands of others) is that the world fishery is still the same size as before. If this is your position, it needs to be developed further. I'm open to seeing it as worthwhile, but it strikes me as a faith position, i.e., we know that it HAS to be true, but there isn't any real evidence to support it.
We are ALL involved in some way in the stock and bond markets, everyone benefits when it performs well....
***This part is getting too complicated for me. I think the biggest concern of the present administration is that in an "upswinging" economy there has been very little job growth. That old faith position might not hold any longer.
...we are part of the changes going on and no one can stop it.
***The automotive industry is an excellent example of stopping the bleeding, and it didn't happen by Americans making better cars at cheaper prices as much as it was a negotiated political solution. We are part of the changes going on, but we can slow it down. Saying that we can't stop it is the false dilemma fallacy.
And, no I cannot relate to someone who has been down-sized, but we cannot stop what we started a long time ago.
***It's evident that you can't relate, it comes across plainly. This lack of compassion causes us republicans to lose the debate even before it begins. WE CAN stop what we started -- you can get off the elevator at any floor. People don't stay in the stock market when they are in an untenable position, they liquidate and move on. I think this faith position is no longer well founded, hoping that these lassez faire approaches ultimately raise the level of economic activity. It used to be true, but it may not be true any longer.
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?
***And I feel that some govt intervention in business can be a positive thing, just as your own position on manufacturing jobs shows. We are not reaping enough benefits from the free trade to warrant the hands-off attitude. We can be as "compassionate" as we have been in the past, hopefully with short-lived programs that don't end up causing generations of dependency like the welfare programs.
Well said. I think there is a hint of internationalist loyalty in these companies that ship jobs (and now whole industries) overseas. This may not be what's best for America. I guess I'm selfish in that way.
What a time bomb.
And that puts the buggy whip BS to bed.
"sure, like China - stealing US nuclear secrets and helping North Korea get nukes - and using NK as a nuclear proxy to check US power. They are really behaving themselves alright."
Did I say they were behaving themselves? What's with the hostility? I simply asked how practical it is to expect a boycott.
Man, this is the kind of response I'd expect from a wild leftie on GU.
Excuse me for asking a practical question, then.
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