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.
This is just the tip of the iceberg. Much more will be outsourced to India, and India will in due time become a key player with the US in keeping the planet stable. It is an excellent investment. How much has the unemployment rate in the US skyrocketed up again in the last couple of years given the hydra head evils of outsourcing?
That's horrible!
the unemployment rate is meaningless - sure, people are working, they are moving from $70K/yr tech jobs to working at Lowes.
Not necessary. For one thing, countries dependent on US business behave themselves. This helps to keep them nuclearly sane.
Just out of curiosity, Willie, what do you do for a living?
People who think it is would have believed the world was flat 400 years ago.
that's a lot. 210 billion is almost 2% of GDP.
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.
Its GDP growth we would have gotten in the US (we are bumping along at 3%) - but instead China and India are getting.
I dont like outsourcing, but you do have a point.
a strong India will be an excellent counterweight to a growing and aggressive China.
Make it a round $500 billion. Sounds better.
Please produce the evidence of the prole drift of the lower middle class in the US. That's your point isn't it, to wit, folks have moved from designing websites or something to flipping hamburgers? BS.
what am I supposed to do, start my own bureau of labor statistics?
I know some of these people, many actually. And I am not talking about web coders who learned HTML at night school after working at Starbucks. I am talking about real engineers - whose careers and skill sets have been tossed into the dumpsters.
Making broad statements of the facts on the ground based on personal anecdotal evidence simply won't cut it. But then I suspect you aleady know that.
$200 billion outsourced could be 1-2 million jobs per year depending on what they are outsourcing. High tech...2 million, call center 1 million. Not to mention the lost tax revenue, lost loans, lost purchasing power on and on.
The 210 is not from the U.S. alone by a long shot. The EU has been outsourcing a lot to not only India, but to Eastern European countries as well. In fact, most of the world, that has anything to outsource that will increase their profitability, does so.
Is it at all possible that any jobs in the US are created by outsourcing? Say jobs created by lower costs of the product, or folks moving to more value added endeavors, or jobs created by outsourcing due to folks with bucks from outsourcing directly or directly increasing the demand for American goods? Is that at all possible, given that there is no real evidence I know of that outsourcing is hurting the macro American economy?
One of the greatest factors in the fall of the Roman Empire was that the Roman citizens did not want to fight or go to war anymore.
SO- they outsourced the defense. Read your history. Attila the HUN was Roman trained.
John Kerry wants to do this with our military. He wants to include French and German troops in any venture. Another way of looking at is he wants outsource our National Defense.
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