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.
"Prole" problems: Average private-industry wage paid has decreased over the last few years, and inflation-adjusted, has decreased since 1976 (!)
Yeah--from IBM. They pulled the contract after they found what BankOne has in IT resources.
I've seen decent arguments on BOTH sides of the CPI--it's probably best to just assume it's true ad arguendem.
those who don't get paid based on hourly wages, which are not included,
Don't be so sure. The BEA dices EVERYBODY down to hourly wages--look at their regional breakdown of earnings.
They don't count dividends, though.
Since a growing number of people own their own homes (lotsa easy mortgate credit,) in Wisconsin, at least, rental prices continue to go down or are subject to "specials"--90 days free, etc.
But you raise an interesting question.
About 6 months ago I read an item from Harris Bank/Chicago's economist which was VERY negative on housing prices--in essence, they have run way past their comparative rental value. Same news on another site today w/regards British RE values (which may well tail off quickly per the article.)
Kerry has NO plan to "yank those jobs back."
Kerry's part of the problem, regardless of his campaign lying.
Nicely selected stat.
"Household" income going up merely means that there are more workers/household, and the demographics will prove it.
Babyboomers' chilluns are now teenaged and getting part-time jobs.
Although your heart's in the right place, I am sure that the makers of Indian (and Buell) will be surprised to know this.
Interesting. There was a "serious shortage" of IT auditors in 1983, too; it was a "shortage" only because Arthur Anderson started recommending that everyone ought to have a couple around the office.
The shortage entirely disappeared by 1988, and, in fact, the number of IT auditors shrank seriously from then through (apparently) now.
The new "shortage" has to do with another accounting firm over-reading the requirements of Sarbanes-Oxley to jack up their fees...
Any decent financial auditor can do this work, assuming they have a few years' experience.
And we learn today that the PMI "Services" index is down, again, and holding beneath 60 for almost the entire calendar year 2004.
And we learn today that the PMI "Services" index is down, again, and holding beneath 60 for almost the entire calendar year 2004.
Actually, the problem is that there was a huge speculative bubble that severely deformed the market for IT types, and put a lot of people who couldn't even spell "IT" into jobs as system admins, etc.
A BS in Accounting is now a 5-year course per the governing accounting association (national.)
THEN, of course, one has to take a heavy programming (not MS crap) courseload, as well.
Finally, someone has to get hired by a CPA firm--or perhaps a very large industrial or financial--to actually get into the field.
At this time, the world's debt-to-GDP total is around 300%; in the US, it's 330% (total Gummints, corporate, and individual debts.)
Unprecedented, period. Last time it was anywhere NEAR that high was just after 1929, and then it was only 200%, worldwide.
The bubble occurred in the runup to Y2K and was largely forced by Arthur Anderson's cash-cow, AndersonConsulting.
They were full of crap then, too...
Andersen Consulting was not the major cause of the bubble. The major cause was a lack of critical thinking on the part of venture capital firms. ("Uh, boss, there's this company working on some Internet thingie, can we spare $700,000,000?" "Sure.")
I'm not much of a politician or a spin meister, this is as realistic as I can be.
We will disagree (although I used AA as a type, not the whole enchillada of scammers and fraudsters...)
The dotnet bunch simply didn't employ the vast majority of programmer/analysts and/or project managers; the Y2K projects did, until 1/2/2001.
There WAS a substantial minority employed by the dotcom bozos--yes.
We can agree that it was BOTH...
"IT jobs" included the idiot who updated the web site news page for $70K/year plus stock options.
And, absent the threat of Y2K (which was a real worry), COBOL programmers were never going to be worth $80K/year.
Incidentally, while these programmers were fixing Y2K, they fixed OTHER problems as well. I saw a consulting firm's report that said that urgent fix projects on deployed systems declined about 30-40% in 2000 & 2001 relative to 1994-95, despite the code being much more complicated. Basically, Y2K marked the first time there'd ever been a concerted effort to fix systems BEFORE they broke.
indeed, that's how people are affording to buy houses here on long island - 3 or 4 wage earners per household now.
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