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.
Probably phony stats ginned up by the trilateralists who sponsored Clinton's war against the Serbs, in order to facilitate oil pipelines from the Caspian Sea. Connect the dots.
This is from a source in reference to this article....it is a survey and seven countries are involved....not just the USA.
The survey is based on responses from 43 financial institutions based in seven countries and included 13 of the top 25 financial institutions in the world by market capitalization.
there is no place to run to - alot of people I know who were lucky enough to have security clearances are piling into government work - either directly, or indirectly through government contractors and sub-contractors. that's the most stable work out there right now. all the free traders pay their salaries through their taxes now.
the problem is, any new VC money coming into the system (especially second phase funding, past the startup phase) include some component of offshore technology staff - or you don't get funded. So new business plans factor that in from the start, the jobs never appear in the US right out of the gate. I see that alot with people I know in semis - running a fab in the US for a new venture is the joke of the industry now.
This is just pain not true.
The average wage in recently-created jobs was slightly higher than the wage in all existing jobs, according to the Labor Department. The only way for this to be true is either:
1. People are not, on average, going down in wage, or
2. New jobs are all very close to the mean and previously lost high-paying positions are not being filled.
The number new jobs is high enough so that I believe the distribution is the same as existing jobs.
"In 2005, Deloitte expects the top 100 global financial companies to offshore..."
It doesn't say what the breakdown is by country.
That's still a real increase, and with a CPI that overstates inflation. And the biggest increases are among those who don't get paid based on hourly wages, which are not included, and are an ever higher percentage of the work force, and it includes part time workers.
Yes, I've seen that in a number of articles (BW Online, or Forbes or whatever). The idea is that some of the key players in the VC are themselves Indians--it is just a sop or a jobs program to their fellow countrymen. It will change, it will just take time. E.g. how well is Sun Microsystems doing over the last several years, Computer Associates has nuked itself, so on.
The problem is that India is a Third-World country and so does not have the cultural mores that the US does.
I fear that the 'patriotic nepotism' (to coin a phrase) prevalent in much of the rest of the world will screw US businesses that naively belive (hey, nice cadence!) that profit motives are equally important to all players.
What don’t they consider helping me by taking less in salary so I don’t have to pay so much for the goods and services I want?
So are you willing to take a pay cut too? Say from earning a descent living with health benefits to working for Manpower for $9.00 to support your family? Don't get too cocky - it could happen to you too!
The CPI for most of the period, understated the swap thingie, and still does to some extent. It also still understates the value of good enhancement. The CPI used to overstate by almost 1% per annum these factors, and still does by about half of that. It is difficult for a static stat to capture the dynamism of product change and enhancement. Think about "ethical" drugs, for example. Oh dear.
"well at least we know where you stand regarding your fellow americans."
Yes, I stand for freedom for my fellow Americans. It is an interesting concept, look it up in the dictionary sometime. I also have enough respect to capitalize the word American.
"funny, I don't see you complaining that Carly Fiorina earns 8 figures per year - I guess that's OK with you, you are willing to pay for that and the compensation for the rest of the CEOs and the executives suite."
Since you have no idea who I am there would be no reason for you to see me complaining about anything. And yes, freedom and liberty are “ok” with me. You obviously have a big problem with these concepts. I am not so insecure about my own life and accomplishments I envy others who have achieved financial success.
If I am required to take a pay cut due to the fact the goods or services I assist in producing are not selling that well, I am not going to complain it is the fault of someone in India.
they never think its going to happen to them. I suspect alot of people who post like this have "safe" jobs in the public sector, or are retired with full pensions and medical.
Of course since you have no idea who I am you don’t know if “it” has happened to me. Being downsized, outsourced, or laid off is most likely not a fun thing. But to strike out at the liberties and freedom that make America great is an inappropriate response. By the way, did you ever notice that when people complain about outsourcing, it is usually about outsourcing to people who are somewhat darker skinned then they are. Just an observation.
By the way, do you describe firemen and policemen as “have(ing) "safe" jobs in the public sector”?
Exactly. Or they own businesses that outsource, or have stock in companies that outsource.
Not arguing for or against, but you do realize median is the numeric middle of families, not the average (mean)? Torie explicitly said median. Whether or not Top exec went from 12 million or 16 million will not change the median but it will the mean.
Risk management - Indian for "litigation free".
Keep your enemies close and your programmers closer, or something like that.
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