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.
AVERAGE HOURLY EARNINGS, 1982 DOLLARS
Non-Seasonally adjusted
1994 7.45 Aug
2004 8.22 Aug (prelim)
Seasonally adjusted
1994 7.50 Aug
2004 8.26 Aug (Prelim)
"safe" as in having job protection? yes, they do.
one of the most dangerous occupations in the US is being a cashier at a store or a 7-eleven or a gas station, because many of those people are shot during robberies. those same people likely make near minimum wage. so what point are you trying to make?
most of the offshoring proponents always use the race card as you have. it totally discredits their arguments. the reason is, that if you walk into any US tech company employing americans, you will see americans of every ethnicity working together as engineers. so this part of your argument is foolish. move on to something else.
Good point. Maybe something we can all agree on is two of the things that are causing outsourcing are the litigation explosion and overbearing regulations. If we have regulatory and tort reform outsourcing may diminish.
show me how the statistics capture the oracle example I gave - because that is the reality of what is going on now. there have been FR threads on it, showing the compensatation of execs at US tech companies that aggresively offshore. its not a fantasy, its really happening.
A couple of positives: First, these outsourced jobs give Indians and Banglideshies(? spelling) better jobs, and more spending power, increasing their demand for goods made by US companies, which boosts our market.
Second, give these nations a stake in the financial system we share, and they are more likely to strengthen their own legal, law enforcement agencies to stop domestic terrorism and unrest. Plus, when we ask them for help against Al-Qaida, these nations are far more likely to give us a hand.
Kerry's strategy of yanking these jobs back to the US will only make them more reluctant to join our fight against the terrorists. Bush should drive this point home in the next two debates.
What are we supposed to do about it? People want to pay the cheapest costs possible for the services they receive. Companies have to cut costs somewhere. Companies don't owe anybody a job. Yes, it's a nasty situation.
thanks
Looks like 1972 was peak year for hourly wages in real dollars.
I told you I wasn't arguing for or against, I'm still on the fence on this issue. I was simply pointing out that Torie said median and then you went into a tangent about removing the people whose salaries go up millions when they export jobs, which doesn't change the median one bit.
I agree with this. I worked in Silicon Valley for 11 years side by side with chinese from singapore and mainland china and indians. Good people personally and professinoally but not any better than americans....except they work cheaper...alot cheaper.
Many of the guys I worked with from Indian and china after spending 5-10 years here have moved back to their home countries because their jobs are there now and so are alot of american jobs.
except for this round of offshoring, consumers aren't reaping any rewards. example - do you have a credit card? they are offhsoring their call centers and IT shops, saving money. anything coming back to you? is your finance charge going down? did AMEX toss you a $50 gift check this past year? MRIs and XRAYs are being read in India. see any discount MRIs and XRAYs coming your way?
your example is true for manufactured products, clothing, etc.
you aren't getting any benefit as a consumer now. in fact, if you've ever called customer support for just about any product (credit card, telephone, cell phone, PC tech support, etc) - you'll find that the service is so bad, that as a consumer, you and I are getting reamed by offshoring, while the executive suite walks off with the booty.
I see the same thing - many of them are returning home.
and as I said in the previous post, give them some time to build up the higher education programs in their own countries - and they won't even come here for an education anymore.
We don't manufacture that much anymore, other than for the military. A company may be nominally American, but manufactures overseas.
Second, give these nations a stake in the financial system we share, and they are more likely to strengthen their own legal, law enforcement agencies to stop domestic terrorism and unrest. Plus, when we ask them for help against Al-Qaida, these nations are far more likely to give us a hand.
Kerry's strategy of yanking these jobs back to the US will only make them more reluctant to join our fight against the terrorists. Bush should drive this point home in the next two debates.
A form of foreign aid? We'll eviscerate our own economy, thus rendering us less able to afford to fight Islamic radicalism, in order to build up someone else's economy, in the hope that they will join us. That'll really sell to the American people. Straight foreign aid would be cheaper and less destructive to the American economy.
Yeah, what you said.
To add gasoline to the dicusson, remember outsourcing works two ways. Companies outsourse jobs overseas becoming nothing more than a large retailer in the US. Then I suppose I am free to outsource my purchasing to entity in the foreign country making the product i want without the middle man. The internet makes this easier.
Of course, I personally am not a good consumer (ie I dont fit the american model), I dont but much anyway.
IBM just lost a $5 billion dollar deal with JP Morgan. Morgan is bringing their operations back onshore after merging with Bankone. IBM is outsourcing their internal operations to Brazil, Argentina, and serveral other countries. These potential enemies will have access to sensitive IBM financial information. Good call. It was with great interest I saw on the news tonight that two terrorist bombs went off in northern India. India is NOT stable.
Because the VC's are about 180 degrees out of phase with what's going on.
Look, if you can round up some bright people in Bangalore, by all means use them. They've got a serious technical education program in India and it's paying off for them.
But to me, outsourcing "because it's cheap" has a way of turning into:
I'm running the top steakhouse in town - but I'm saving money on a chef by having a guy around the corner cook them on a hibachi on the sidewalk - but we can't make him understand that you're only supposed to flip the steak once so they come out all dried out and its embarrassing and three-quarters of the time the owners wind up having to cook the steaks themselves anyway.
I mean, is that how you really want to do it?
I mentioned the JPM thing in a previous post. Maybe things will turn around, I don't know. China is pouring concrete for semi fabs so fast, the suppliers of construction materials can't keep up - I'm not optimistic.
{"safe" as in having job protection? yes, they do.
one of the most dangerous occupations in the US is being a cashier at a store or a 7-eleven or a gas station, because many of those people are shot during robberies. those same people likely make near minimum wage. so what point are you trying to make?}
Here is a link to a chart:
http://www.menstuff.org/issues/byissue/dangerousjobs.htm#tables
It has the average of all jobs at a relative risk of 1.0 and gives cashers a 0.9, BELOW THE AVERAGE. Granted this includes cashers at the boutiques Ms. Hilton shops at but it is still below average. Police are at 3.4. The argument is being made on this thread that job protection is important because one has to take care of a family. If you are dead that is difficult.
{most of the offshoring proponents always use the race card as you have. it totally discredits their arguments.}
I am not an “offshoring proponent”. I am in favor of the freedom to do so.
{the reason is, that if you walk into any US tech company employing americans, you will see americans of every ethnicity working together as engineers. so this part of your argument is foolish. move on to something else.}
Good for them. You are not pointing to any evidence that the current enemies of offshoring welcomed this development.
It is reality that most of the offshoring demons in the world today have populations that are a little darker than the average American. If reality appears foolish to you it is not the fault of reality.
By the way, did someone offshore your shift key?
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