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.
If you can find Census data through 2003 for individual median incomes, you're a more assiduous researcher than I am.
I can only find data up through 2001.
Looks like normal business cycle stuff to me.
Wow! So freetraders want churches to provide them with cheap trained workers.
go figure indeed:
http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh26690_2004-10-05_21-48-01_n05270579_newsml
you see, there actually have to be new jobs available for the graduates - it doesn't mean much that a handful of high paying jobs are available, its the quantity.
I think Indian declared bankruptcy again last year. Not sure, though. The point is, American M/cycle manufacturers are not as healthy servicing a niche market as Honda & Kawasaki are.
The only flaw in what you said is that outsourcing never reduces prices to the consumers. They only reduce costs and increase margins. The shareholders wounldn't have it any other way.
I'm just going to say this... DON'T BET ON IT!
That's my point EXACTLY - the only thing they care about is the short term satisfaction of the shareholders.
Wake up, the IT slump is over, the only people working at Lowes who were making 70k 3 years ago are the folks who's only skill was they knew was HTML, or people in middle management whos only skill was kissing ass, and the market was insane that companies were vastly overpaying people.
Folks who truly have skills and talent are finding pleanty of jobs! Particularly in last few months! I live in an area of the country where IT was absolutely DEAD for the last few years, but its definately come back in the last few months... and if its coming back here, it has to be absolutely booming elsewhere.
Don't buy into that Democratic spin line.
Many of the companies that like the current policy position are waiting until after the election .
We are headed for a depression , the question is how will the US people respond to that ?
Sorry, bud. I was talking about Engineering.
Indian was doomed to fail from the start, they started pricing at something like mid to high teens for their base model, and 25 or 30 for their high end model..
They opened their manufacturing in California (some of the highest labor and tax rates in the country)...
They were doomed from the start. If they had been serious they would have had a base model well under 10... HD's start at about 6 or 7 if I am not mistaken, and opened the business in a part of the country with labor costs and tax structures that weren't going to kill you.
The only place in the country where you could see Indians being driven was in the areas around the factory in Cali... they never connected with the marketplace.
LOL. At the time, I was thinking I should sell gravel on-line. Gravel.com
Hondas have been made here for more than 20 or 30 years - Maryville Ohio. The Accord plant is right beside the motorcycle plant.
My wife owned an apartment complex at the time. I told her to put her corporate name as a website and start hitting up the venture capital firms, with the intent of cashing out at the mezzanine offer, and we'd be rich.
What makes him the idiot. I'd say he is a very intelligent person. In such a case, the only idiot is the guy who authorized that pay level.
The fact that he couldn't spell to save his life, and once put proprietary/competition sensitive material on the public website.
I'd say he is a very intelligent person.
One's paycheck is not a measure of one's intelligence, as Kerry and Edwards demonstrate.
In such a case, the only idiot is the guy who authorized that pay level.
That guy's also an idiot, but, then again, the entire company was a collection of idiots wandering around in loose formation.
It is also a falacy that most shareholders are moms and pops. The majority of any stock, and thus the stock decisions, are made either by a very few individuals or by mutual funds. Actually, mutual funds, more then most are contributing to this short term stock price focus, instead of long term stability and growth focus. In the end, of course, this will prove disasterous to most corporations and their employees and those businesses who rely upon the salaries of those employees and so on and so on. But then again, US business has never been known to be to long sighted.
Since when did a maximum wage get put into place? So who do you approve to make more than $70,000? Physicians? Nurses? School administrators? Are you one of those who believes $70,000 makes someone rich? That is a pretty nice middle class income is all.
I went through 5 months of hell with Marshall Fields call service just to return one item. The service people on the phone were located in India. They spoke English all right, but so heavily accented you couldn't understand them. Each one was mentally unable to rectify the error the previous "helper" had promised........and so it went till I demanded an American-speaking supervisor to straighten things out.
Fields has since been sold, but I was told by one of their muckey-mucks that the whole outsourcing of service calls has been dispensed with due to the high number of complaints and threats of no more business.
Here in Florida, half the doctors are Indian. They may all be Einsteins, but I specifically told my doctor not to refer me to any Indian (Pakistani, etc.) doctors as I can understand little of their "English".
My worst encounter was with a specialist who was raised in India, trained in London, practiced in Australia, then in New Yoik city.....and then came here to Florida. I might as well have been talking to Alice's jabberwocky.
Needless to say, my first consultation appointment with him was my last.
Leni
Yes, I worked for a company with such leadership. They were listed in our area as the fastest growing company for 3 years (small - medium size), now they have less then 20% of their work force. When you are a $12 million REVENUE company with $9+ in DEBT and unpaid back payments, you are not in calm waters.
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