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.
Again, we ignore the little fact that there is a quota system in place on automobiles. I tell you what, lets put one on cheap plastic crap and see how many factories return. I'm betting on more then a few.
Do you know what the quota system is for automobiles? Just curious.
I agree, good long-term investment but painful short-term. People in China and India want American goods and services BAD. They will made there and the profits will be massive.
I own a tech business and I hate to say this but I can't stand most I.T. tech guys here in the states. They are lazy, don't understand business and deadlines. I have sourced to India. They are 1/2 as expensive and will get the job done right and quickly if you are a cash buyer. What do I get with an American tech worker? Lied to, my database stolen and resold, projects half-complete and never finished. Oh yeah, quit on with no notice, moonlighted repeatedly I could go on and on. The I.T. community wants to b*tch about their high paying jobs going to India? Sorry guys, learn to compete a little better.
Consider for example, U.S. import quotas on automobiles, which caused the price of new American autos to increase by 41 percent from 1981 to 1984. The auto industry claims these price hikes saved up to 22,000 jobs. But they also reduced sales -- by about 1 million cars. This drop forced some 50,000 layoffs by the late 1980s. In other words, even though protectionism saved some 22,000 jobs, it caused a net job loss of 30,000. Some "protection."
* Root Cause #1: inexperienced labor,
* Root Cause #2: overemphasis on process, and
* Root Cause #3: project performance metrics masking problems.
Cogent Road - Mortgage Banking Cogent Road offers e-business solutions for the mortgage banking industry that protect banks from loss by identifying potential errors in collateral valuation and loan regulation compliance. When Cogent Road outsourced a project to Calcutta, India, the company was surprised to find that it took twice as long as estimated, due to the language barrier and 12-hour time difference between India and its San Diego headquarters. Cogent's conclusion: don't outsource mission-critical projects overseas. [Source: BusinessWeek Online, "The Outsourcing Food Chain," March 11, 2004]
Shop Direct - Call Center Shop Direct, which employs 1,200 people in the United Kingdom, opened a call center in Bangalore in March 2002 and transferred 250 jobs from Britain. Service from the new location has been called poor, and the experiment will end when the office is closed next month. Jobs will be moved back to six call centers in the United Kingdom. A spokesman said the Indian center dealt with orders and customer inquiries, but the level of service was not up to the required standard. He noted consumers felt the Indian staff had poorer skills than their British counterparts and were ill equipped to deal with inquiries. "They may be cheaper but I can certainly tell the difference when I am being served by someone overseas. Success is much more important than having someone who costs half the price," he said. [Source: IANS , January 26, 2004]
That failure rate is even harder to swallow when you factor in the public and political backlash against offshoring today.
163 posted on 10/05/2004 11:02:17 AM PDT by quant5
If they are members of a church, their church should help them. Then there are private charities. Last but not least, they can use the many programs offered through the federal, state and local government.
"Once England was the prime industrialized nation of the world"
Well, we have a choice. We can be 'industrialized' and cut ourselves off from world trade, or we can actually participate in world trade.
One thing I've noticed, the American lifestyle has improved dramatically over the years - and it certainly hasn't been because we refused to participate in trade with the rest of the world.
And I can speak from personal experience on this one. The company that I used to work for sends as much new coding to India as it can - only because of the labor rate. I was the finance weenie for a development group of a major credit card company. The quality is less than sh!t on any platform other than mainframe. Total releases were sent over there and had to be redone once they got here. And then to have management say that it was a good thing to do.
A lot of people don't really understand that the rate is not all that cheaper, as companies do not pay these people directly. They are paying some guy in New Jersey about $35 per hour who then pays someone $5 an hour to actually code. It's all a scam and needs to stop. Another thing that these companies don't think about is the intelectual property laws here are not all that applicable over there, we are having things stolen and we don't know it.
Ahh so in other words, taxes and big government, well we are back to that social cost again.
We can be 'industrialized' and cut ourselves off from world trade, or we can actually participate in world trade
Lets clarify that a bit. We can be self-sustaining and trade our surplus with other nations for their surplus or we can remain in the system we are in presently and be dependent on other nations for our daily goods which we pay for by selling off our treasures and our future. Boy, that should clarify the issue: are you for being self-sustaining, responsible and conservative or for being dependent, needy and thus socialized?
You are right, it is because most Americans swim and sink in debt and why personal bankruptcy is on a constantly growing curve proportional to national debt.
management could care less about security, unless some big identity theft lawsuits can be won against these companies, they could care less if you or I have our lives destroyed due to identity theft.
I would agree - Americans on the whole do carry a lot of debt. But the reality is, you can't get a credit card or a bank loan if you don't have a job.
Totally untrue. My friends wife is foreign. Is a house wife. Has never worked a day in the US in the last 2 years. She recieves credit card offers constantly. My daughter has recieved credit card offers, she's 9. Students get credit cards all the time, most of them do not work (university). The banks don't mind, their losses are insured by the Fed, again that big government and corporate welfare.
Unless you are not expecting government to step in and stop businesses from outsourcing/offshoring, you have no basis on which to whine about 'big government.' Based on your previous posts, that is EXACTLY what you are wanting 'big government' to do.
"We can be self-sustaining and trade our surplus with other nations for their surplus or we can remain in the system we are in presently and be dependent on other nations for our daily goods which we pay for by selling off our treasures and our future."
As I stated previously, the American lifestyle has improved dramatically since the time we first began participating in the global marketplace. The facts at present do not support this type of 'chicken little' thinking.
Well considering that it was big government that created this mess with NAFTA and WTO, yes I expect them to end it. It was little government under Washington, Jefferson and Hamilton who put down tariffs and quotas.
As I stated previously, the American lifestyle has improved dramatically since the time we first began participating in the global marketplace. The facts at present do not support this type of 'chicken little' thinking.
Yet you equally agree that Americans are drowning in debt. That means this is unsustainable improvement and the repo man is coming. So which is it? You contradict yourself.
You dont like it? Moove to India
That's fine. Just don't lecture anyone else about 'big government.'
"Yet you equally agree that Americans are drowning in debt. That means this is unsustainable improvement and the repo man is coming."
Americans have been 'drowning' in debt for a very long time. Nothing new about that. And again, in order to get a credit card or a loan, you've got to have a job. So which is it? Are Americans without jobs or are they drowning in debt? You contradict yourself.
Furthermore, we already pay $400 billion in debt payments from our taxes to foreign countries and entities. Yeah, lets get some more taxes going, spend now, lets not worry about what our taxes will be to pay for it later. And if you are old, hell spend like crazy, let the young pay it off when you're dead and have had yours. Who cares about the future, the gravy train will never end, its party time all the time.
Except when the interest rates will have to keep rising to keep foreign investors interested. Oops that's already happening. Maybe there is brickwall at the end of this speed train.
Funny, by the way, why do you ignore those ignoramoses our founding fathers? After all, they were near sighted and believed in tarrifs while the greatest industrial power on earth: England, was busy buying into Free Trade. What's that you say? England is a second rate power at best? Why yes, that is the point now isn't it.
Maybe the founding fathers weren't so ignorant in their support of tariffs.
No, but mommy and daddy did. Don't kid yourself. They checked out mommy and daddy before they gave you a credit card.
"You are either blissfully ignorant of the state of the credit industry or are ignoring it purposely."
Are you currently unemployed? If so, I challenge you to go to your nearest bank and request a long or simply reply to the next credit card offer you get in the mail. Credit is given out much more easily than it used to be, but you don't get credit if you don't have a job.
"Furthermore, we already pay $400 billion in debt payments from our taxes to foreign countries and entities."
Not sure how this relates to the topic at hand. Can you elaborate?
"Except when the interest rates will have to keep rising to keep foreign investors interested. Oops that's already happening."
Interest rates are still very low and actually needed to come up so individuals could earn something on their savings.
" Funny, by the way, why do you ignore those ignoramoses our founding fathers?"
Where in the Constitution does it forbid globalization of the marketplace and/or the forbidding of U.S. businesses from outsourcing/offshoring? If all you are talking about is putting tariffs on products brought in from overseas, that is a different issue. The original discussion was about outsourcing/offshoring.
"England, was busy buying into Free Trade."
Okay, you said this again, so I'll say it again - the lifestyles of Americans have improved substantially since the U.S. began participating in globalization.
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