Jobs worth $ 210 billion to be outsourced to India in 2005

DeepikaGlobal ^ | Monday, October 4, 2004

[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.

[oceanview]

see post 203.

[oceanview]

that's what the article is talking about:

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh26690_2004-10-05_21-48-01_n05270579_newsml

who do you think Agere is laying off? busboys?

[Poohbah]

Since when did a maximum wage get put into place?

Ever since Oog the caveman said to Grog, "You want TEN fish for that flint? F*** you, I'll go talk to Korak in the next cave, he never asks more than six."

I'm not willing to pay $70K a year for someone who went to an MCSE bootcamp, but can't tell me the difference between disk striping, disk mirroring, and a true RAID system.

So who do you approve to make more than $70,000?

People I'm willing to pay more than $70K--in other words, those who will add more value to the process than their loaded rate (which is about 3x their salary).

Physicians? Nurses? School administrators?

If a competent physician or nurse asks $70K, and he's the low offer, then I'm paying that physician or nurse $70K.

From what I've seen of school adminstrators and the products of the schools they administer, they don't add enough value to be worth paying the minimum wage, let alone $70K.

[quant5]

Thanks for the article man.

[HamiltonJay]

Fitz,

In IT at the height of the boom folks were being paid 70k for a skill set that had little more in it than the ability to fire up a computer and operate an HTML EDITOR... it was a BUBBLE... irrational exuberence... The market got so insane that Employers were paying ungodly salaries for anyone that could fog up a mirror.

The minute the bubble burst (as they always do) these used to be 70k jobs were now 20 to 30k a year jobs because they required VERY LITTLE SKILL TO DO.

Believe me, lots of people were vastly overpaid for their skill sets, particularly in IT at that time... the only folks who used to be making 70k in IT now working at Lowes are folks who had the IT equivalent skill set of being able to "Turn a Wrench".. now that the bubble has burst and reason had returned to the industry these people can't find jobs in IT because they never really had the skill sets to perform in IT. That and brown nosing middle managers who rode the IT wave as well but had little ability or skill to back it up.

Once the bubble burst, they were let go and when skill and experience were required for the new IT jobs, they couldn't cut the mustard and now work at Lowes or BK. Trust me, skilled IT workers still find work, even through the downtime the good and talented found work... and now that the bust is over, the talented will once again rise up again and the "want to bes" will be left whining about how they used to make 70k a year to basically type in HTML.

Bubbles happen in employment markets, just like they do in housing markets. When your 1 bedroom cinder block house would have sold for 300k at the height of the bubble, but now after its popped its only worth 30k, you don't go out and blame the economy for the fact your dump of a house is now back at a realistic price.... you recognize that the market was so insanely out of whack that you should have sold when it was worth 300k, or done something to it to make it worth 300k.

[1rudeboy]

Being able to write code makes you a tech employee, but not an engineer.

[oceanview]

the labor department is looking for someone like you to spin the monthly statistics - you are good at it.

[1rudeboy]

Spin this. [hoot]

	Computer and Electronic Engineers by Education Average annual base salary

Degree	Salary
Doctorate	$112,115
Master's, business administration	97,407
Master's, electronic engineering	96,642
Master's, computer science	91,928
Bachelor's, computer science	87,826
Bachelor's, electronic engineering	83,637
Associate's	65,703

Source:"Worldwide Salary & Opinion Survey," 2003, EE Times, CMP Media LLC, Manhasset, N.Y. via the Wall Street Journal [globalist tool]

[MEGoody]

"Wow! So freetraders want churches to provide them with cheap trained workers"

:::Sigh:::: Read the post to which I was responding. Churches should assist their members during tough times, e.g. helping them pay the electric bill, buy food, etc.

[1rudeboy]

I would love to see your source for that.

[MEGoody]

"Finally, someone has to get hired by a CPA firm--or perhaps a very large industrial or financial--to actually get into the field."

Almost any company of any size has IT auditors. And yes, gee, whaddya know, someone has to be worthy of being hired for the job.

No one is owed a job. The thought that someone is owed a job is so leftist it is hanging off the end by its fingernails.

[MEGoody]

"The new "shortage" has to do with another accounting firm over-reading the requirements of Sarbanes-Oxley to jack up their fees."

You are mixing up financial auditors with IT auditors. IT auditors verify IT security and processes, et al, not audit someone's books. So the new shortage has nothing to do with another accounting firm over-reading SOX requirements.

[MEGoody]

"The IT jobs have not been made obsolete, as was the manufacturing of buggy whips. The reason they are gone is third world wages, not technological innovation."

You are missing the point. As I have pointed out, there are opportunities out there for those who update their skill sets.

And hey, if you don't want to update your skill set, try starting a business of your own doing exactly what you were doing before your job was outsourced.

Oh, nevermind. . .running a business requires skills a developer of commodity code doesn't have.

[sukhoi-30mki]

Err,That's a load of codswallop, to be mild.The Indian armed forces use very little US equipment & the planes that surprised the USAF,the SU-30 & the Mig-21-93UPG,have no US components or US origin stuff.The SU-30 & the Mig both use Israeli & French avionic systems,which give them far greater electronic sophistication than the average Russian product(Israel,which has a highly sophisticated weapons industry is India's 2nd largest arms supplier).The Indian armed forces are very wary of US systems(even if it's stolen!!!) due to the constant threat of sanctions & the large number of strings attached to any US deal,something which the Russians,Israelis ,French & South Africans are very flexible with.

[oceanview]

the point is how many new jobs are being created in those positions. Its like posting that basketball players make an average of 2 million a year, and then telling everyone to head for that field - how many new job openings are there for basketball players?

[ninenot]

Evidently you can't read. I NEVER stated that someone "was owed a job."

[ninenot]

IT auditors verify IT security and processes, et al, not audit someone's books. So the new shortage has nothing to do with another accounting firm over-reading SOX requirements

It so happens that I have written job descriptions for BOTH types of workers, and have successfully hired BOTH types, as well. Your assistance is not required for this distinction.

After you've actually read the SOX legislation, you may understand that the proc accountability requirements cross into IT audits (not to mention materials management procs, and others...)

It is true that I was unclear about the buzzard opportunists: CPA firms are no longer allowed to "consult" their clientele on non-financial matters. Therefore, CPA firms set up independent "consulting" firms to bleed their clientele dry on IT, operations, materials, and HR affairs.

Competency and bang-for-the-buck are irrelevant, of course.

[aruanan]

Where Did All the Jobs Go? Nowhere
By DANIEL W. DREZNER

Published: September 29, 2004

Chicago — John Kerry is making the outsourcing of jobs by American companies a centerpiece of his campaign, telling audiences that "because of George Bush's wrong choices, this country is continuing to ship good jobs overseas." President Bush's team has in turn accused the senator of hypocrisy, noting that many of Mr. Kerry's supporters in the business world run companies that are sending jobs offshore. Yet as each side angles for votes, neither is addressing the real issue: is the outsourcing of jobs a problem? The answer, surprisingly, is no.

SNIP--The rest of the article.

From further on in the article:
Many companies moving jobs overseas have also received a bum rap. Lost in all the clamor about I.B.M.'s outsourcing plan was the company's simultaneous announcement that it would add 5,000 American jobs to its payroll. For the second quarter of this year, the company reported a 17 percent increase in earnings, allowing it to trim its outsourcing plan by a third and raise its overall hiring plans by 20 percent. The conclusion is obvious: I.B.M.'s outsourcing of some jobs helped it reduce costs, increase earnings and hire more American-based workers.