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.
Very true, most try to see themselves as an internation entity above petty states. Time to reign them back into reality.
America and Britian were trading partners in 1812. Russia and England were 300 year trading partners and had the Crimean War. All the nations of WW1 were trading partners. You are right, rediculous. Japan and America were huge trading partners, then came WW2.
Of course, the voluntary quotas were to protect the Big 3 from their Japanese competition. And now Toyota is one of the Big 3. Lots of help, that was.
And just like now, they had to 'retool' their skill sets.
Can't find a job? There is a serious shortage of IT Auditors. Retool.
And if you think the communist party of America is sitting on its hands, you are fooling yourself.
To get around the quotas, the foreign companies built plants in America that employ Americans. This is not insourcing, this is building at the point of the market place. They do not then ship American built Toyotas back to sell in Japan.
Really, how many, 100,000 to absorb all the lost IT positions? How about the 400,000 lost textiles positions with minimal education? The autoplants were across the street from the buggy whip makers employing only Americans. Small transfer. These jobs are now in India employing NO Americans. Apples and oranges made to deceive the masses.
I agree. Myself, and everyone I work with or know in tech, are not optimistic at all, because we see it happening every day right in front of us. The posters who trash talk us and say we are crazy, don't see it first hand.
The CEOs and those in the executive suite are part of the "global community". most do not see themselves as americans, the US is simply a market they can exploit for profits - nothing more.
NAFTAs original idea - to use Mexico as a source of lower cost labor for low skilled manufaturing, attempting to build an economy there that would lessen immigration to the US - was a good idea.
But free trade with China destroyed that idea, as investments in those factories went to China, not to Mexico. So now businesses want Mexico to be the source of low cost labor for the service industry instead - and since those jobs require the physical presence of the worker, massive immigration is what we have.
the tariff on light trucks (as an example), is that propping up the unprofitable pickup truck industry in the US?
and what's this about education? we are losing knowledge jobs now, replacing them with service jobs. If anything, college education is becoming over-rated, given what it costs, and the salary you can earn when you get out. You would do better being an auto mechanic, and that does not require 4 or 5 years of college.
the point is, they build the cars in the US, employing our workers.
So foreign company building plant here to service local market = good, and U.S. company building plant there to service local market = bad?
Sorry, outsourcing is not building a plant in a foreign country to service that market. Outsourcing is building a plant in a foreign country to service your own market. Lets try to keep these facts straight, ok?
The article I read in ComputerWorld stated there was a market for approximately 225,000 IT Auditors. (With the offshoring of development, the need for IT Auditors has skyrocketed.)
"How about the 400,000 lost textiles positions with minimal education?"
Over what time period have these been lost? Textile positions have been moving overseas for a long time - this is nothing new. Nevertheless, these folks can 'retool' their skill sets as well, if they so choose.
"Apples and oranges made to deceive the masses."
The evolution of the U.S. economy is nothing new. As technology has advanced, and as global markets have opened up (that's not new either), some job markets have fallen away, while others have increased in size or new ones have been born. The problem comes in when people don't want to change along with the job market.
When they refuse to change, they only have themselves to blame.
Well, there goes the whole China argument.
We have a member here who regularly laments that kids in the U.S. no longer want to study Engineering. The highest-paying jobs in the U.S. after graduating from a four-year program? You got it . . . Engineering. Go figure.
Who again will pay for the retooling of the poor and the lower classes? And who will pay for them to eat and have a home while they "retool"?
2.When they refuse to change, they only have themselves to blame
That was what the British and French said as they bit into free trade in the late 1800s. They are now the super power industries that they are today thanks to that. Once England was the prime industrialized nation of the world: today shop keepers and importers and nothing much else.
The technology hasn't changed that much in manufacturing, the plants have simply moved out of the country. Nothing has come to replace them, not in manufacturing. But there is always the $7/hr jobs of Walmart and McDees, the positions that the illegals haven't grabbed up yet.
As for technology, don't worry, eventually the US will suffer what it suffered onto England, France, Germany and Soviet Union/Russia, brain drain. When the proportional pay is down and the opportunity is too, those with skills immigrate out. R&D is already leaving the US for India, so the new tech will be from there, as will be the industry producing it. The 30% drop in enrollment in tech should be a flash of reality, but I guess for to many it is not.
You mean all those factories built in China are only for the Chinese market? I must have been dreaming about all those container ships and all the things that say made in China.
Take GM for starters. How many cars does GM import here from China?
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