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Wednesday, November 09, 2005

Comments

Claus Vistesen

As reported in the London based Neweconomist blog we are focusing on India and how the country has created a niche in the global economy of providing ground for the outsourcing of currently 44% of the global market for IT services and IT-based business processes (...).

Bryan

"Deutsche Bank's latest report on the Indian economy, Outsourcing to India: Crouching tiger set to pounce (PDF), reports that India is "the back-office of the world", currently commanding 44% of the global market for IT services and IT-based business processes (BPO). The global market is currently worth some $40 billion, and will continue to show strong growth. The report, by Jürgen Schaaf and Thomas Meyer, notes that India’s key comparative advantage is its availability of well-trained, English-speaking and inexpensive specialists. However future shortages of IT specialists are likely:"

Ha, funny this article is coming out of Deutsche Bank, since the next big wave of outsourcing isn't coming from the US anymore-- it's topping off here as companies max out on the gains they can save by shipping work to India. (Hidden expenses, worker salaries here being cut-- the usual routine.)

Germany, OTOH, has ridiculously high worker costs, pensions up the yin-yang, and labor unions that make it next to impossible to fire even incompetent employees-- along with quite successful German companies who'd like to stay that way. The result? The Germans are now looking increasingly to outsourcing themselves, and this is where the growth is. Despite the Angela Merkel election, she had such an attenuated coalition that there won't be many real reforms to reduce the cost of German labor, which will continue to push German companies to outsource abroad until the German authorities finally wise up and realize that they have to make labor and capital more free-flowing.

The US actually has made structural reforms that make it easier for companies to hire American workers, who are preferred for a variety of reasons-- OTOH, Germany for at least a decade more will be stuck with these sclerotic regulations that make native-born German labor way too expensive.

So the upshot? If you're an Indian programmer or call center aspirant, the big language to learn now is German, not English. Study German in your classes and spend a couple years in a German-speaking country (there are many) to get fluent, and you'll likely have a much better shot at getting a lucrative outsourcing job than for the already glutted US market.

Inbound Call Center

The outsourcing boom is a boon for India. What other job avenue would have provided such extensive employment to all the qualified and semi-qualified youth in this nation. No better time for it to strike our country.
For outsourcing voice, email, chat, back-office support visit our call center website http://www.aumenta.cc

Inbound Call Center

The outsourcing boom is a boon for India. What other job avenue would have provided such extensive employment to all the qualified and semi-qualified youth in this nation. No better time for it to strike our country.
For outsourcing voice, email, chat, back-office support visit our call center website http://www.aumenta.cc

Customer Service

I think apart from India, majority of the developed countries should make use of this boom in India to reduce the effects inflation in their home country. For example, USA. US companies can benefit majorly by outsourcing to India reducing their costs upto a tenth. For outsourcing voice, chat, email or back-office support, visit the website http://callcenter.ramshyam.com

Trisha

I have been to India quite a few times in the past 10 years (both for business and pleasure). Indian economy is definitely booming and I myself can see vast improvements in the country in the past few years.

Culturally there are vast differences between Indian business world and its western counterparts. I suggest that the visitors prepare themselves for the cultural differences in Business India.

There is a useful ebook about the Indian Business culture at: http://www.hipcoders.com/india_business_etiquette/index.html.

Eric Graham

As a long-time HP customer (between notebooks, printers and desktops for the businesses I own, I've probably spent $250,000 over the past 5 years on HP products) my recent frustration with their Indian tech support call center has lost HP my business for life.

For phone based communication, the poor English skills, lack of understanding of what customers are trying to explain and the need for me to continually ask them to repeat what they just said because I can't understand them, makes the communication process break down to the point of no return.

Don't get me wrong... I am all for outsourcing as a great way to bring costs down and build share holder value. But when you outsource something as critical as your customer service and support to individuals who your already frustrated customers cannot understand, you are making a huge mistake long term.

Just my $0.02 (or for HP just my $250,000 in lost business...)

Eric

Bruce

As long as the U.S. Federal Tax Relief Act, Section 530 is abused, U.S. corps and multinationals through the U.S. will use Section 530 to fund contract labor in the U.S. and more and more offshore. This is corporate socialist welfare at its finest where the U.S. citizen tax payer is funding the payroll of outsourced labor in India, with as on contract with an HP, or through nasty companies like Infosys and Satyam. Instead of focusing on the destruction of the U.S. Middle Class, it seems much more relevant for coporate labor endeavours in and through the U.S. to reduce costs for top end executive pay. Capitalism is dead in the U.S.; the corporation depend on every bit of welfare to inflate stock value. Owe it up to Republican and Deomcratic Communists (Socialists). The two party political system in the U.S. has decimated the great democracy.

Arthur Eckart

Bruce, who will reduce top corporate pay? The government that you stated "decimated the great democracy." How will reducing "cost" of top corporate pay reduce offshoring? If U.S. firms stopped paying taxes and stopped hiring American workers, that should end any type of welfare.

Lafayette

IBC: "The outsourcing boom is a boon for India."

Yeah, right.

How do you feel knowing that your boon is a bane for others, put out of work and their families endangered by unemployment? Feelin' good, are ya?

The earth being flat nowadays, it extends beyond India. So, just wait till dislocation happens to you. Then we'll see what you think.

What goes around, comes around.

Bruce

Arthur, the trend remains in America to subsidize the rich and corporate at the expense of the private U.S. citizen tax payer.

Who will reduce top corporate pa? Well, no one. The corporate shareholder, I'd imagine; but that will not ever happen considering what holding corporations and funds hold stock. So, no corporate entity will actual serve the civil interests of the U.S. citizen. The U.S. citizen, on average, does not know that Section 530 of the U.S. Federal Tax Relief Act is THE foundational piece of legislation that has sped up what Ross Perot called the "sucking sound" to decimate the American middle class and economics. However, contractors and recruiter from India know EXACTLY what section 530 is and does, and how it serves them at the EXPENSE of the American citizen.

Section 530 has given rise to the Kforces, SatYams, and InfoSys's in the world vying to subsist on this form of corporate welfare. America remains a nation providing welfare, but ended doing so for the people in need up until 1964 or so only to redirect such wealth to those that already have it or have a means of creating it easily.

I call it Republican or Democratic Socialism. Jimmy Carter signed Section 530 into law for the 1976-1977 Tax Relief Act. Bill Clinton expanded it in 1994-1996 and changed some wording on the Labor Law side preventing individual independent contractors from directly contracting with companies easily anymore while the Kforces, Volts, and Manpowers, among innumerable other from holding or even reducing the dollar count of what I make on W-2, while they charge more and more for the bill rate from the corporation.

Even if Section 530 was amended to reduce or restrict contract duration, and even require converting the contractor to full-time, permanent, jobs may still migrate to lower cost countries like India, but much more slowly.

Sections 530 is only one tool of many used by corporations, such as amortization of the value of projects, facilities, and technology tools like computer workstation and office furniture. However, the evil of Section 530 is that it creates a whole industry, that adds nothing to the American endeavor, performs at best a poor quality of human resource and recruiting fulfillment, adds to the U.S. Federal Budget AND U.S. Trade Deficit, while devaluing each dollar I pocket. How is Section 530 good? It is not. In the original spirit, that defined a temporary worker in 1976, well, that was okay, I guess. But to be on contract for 5 years at Anheuser-Busch, ten years at Pfizer, or maximum one year at Microsoft in Redmond, WA, when you can’t build tenure or enjoy the benefits of a directly employed worker doing the same thing, well, sounds like sucking to me.

Most every first world nation has some form Section 530 in their tax and labor laws, like the U.K., Germany, Ireland, and Australia. However, these countries provide this tool as temporary relief not at the expense of the people en masse in those nations.

Arthur Eckart

Bruce, the reality is the "rich" pay the taxes and create the jobs. The "poor" don't pay taxes or have a negative income tax (e.g. through tax credits) and they take away jobs (e.g. through welfare). Moreover, the poor receives "free" public goods, while the "rich" pays a lot (or maybe too much) for the same public goods.

Lafayette

AE: "the reality is the "rich" pay the taxes and create the jobs. The "poor" don't pay taxes or have a negative income tax (e.g. through tax credits) and they take away jobs (e.g. through welfare). Moreover, the poor receives "free" public goods, while the "rich" pays a lot (or maybe too much) for the same public goods."

Highly specific reality, that. Which planet?

America the Degenerate

Amerikkka is a piece of crap. Fat arse lazy electorate, stupidly slothfully voting from ads in tee vee. Amerikkka the lard ass. Democraps and Republikkins. A Platonic duality in perception but a monotheist politk. A true democracy, even representative, would not have an electoral college to elect a new Amerikkkan Emporer - it would foster a cloalition of many political parties that serve to educate and inform the electorate. The only contribution Amerikka the nazi-facist crap fuck makes to the world is: 1 - Faeces (feces or shit or foeces), 2 - Pollution, 3: Refuse, 4 - Facism for the wealthy and wealth mongers at the expense of the rest of the world. Sure, I'd rather not live in East Timor, of course their legal tender is the U.S. dollar. Amerikkka the degenerate pigshit is in a downward spiral; the fall of Rome with a Pope on the throne named Clinton or Bush-shit, preserving something that will fall and will take as much down with it as it can. Democracy? Hardly. Capitalism? Shite, no. Sweden, France, and the beloved U.K., and the like are truly democratic and capitalist - with compassion. The wealthy in England truly create opportunity for the masses. Research it yourself. In these countries, wealth is distributed much more honestly. Maybe higher unemployment, but a better margin for all. I hate Amerikka, but I feel for the Americans donning trousers daily to flip a burger or code an API for a Web application.

Lafayette

ATG: "I hate Amerikka"

Fly get up your nose?

Sneeze.

Lafayette

AE: "How will reducing "cost" of top corporate pay reduce offshoring? "

Exaggerated executive pay is the sole preserve of the BoD Compensation Committee, which toys with corporate profits out of cronyism that distributes corporate income to a select view - without any overview from the shareholder representatives. Shareholders have NO representatives on the BoD! Membership is arranged by existing boards, with no other oversight involved.

So, the temptation is naturally great for "good friends" to scratch one anothers back. After all, we are talking about a population of what, only less than 5 or 7000 people who sit on the boards of the Fortune 500? It's like a rather large Corporate Country Club.

It’s analogous to the case where you gave your house to a property manager and he distributed the income to his "pals" without your consent. But, in a court, this is tantamount to fraud. As a property manager, just try it.

The BoD is constituted of "property managers". They have a fiduciary responsibility to shareholders and exaggerated CEO pay is certainly not one of them. The most scabrous example of this scandal is when the pay is totally unjustified by performance. Besides, only God knows how the criteria of «achieves goals» are obtained, because shareholders rarely know the objectives set.

The abuse is so massive a law is necessary to regulate it. We have speed limits on highways, don't we? Well, we need them in the boardroom as well. Why not some multiple of the average wage, say 100%. That is more than sufficient to attract the necessary talent.

With the savings, the Board can distribute them in either of two ways: (1) Stock options to the entire work force or (2) simple dividends to stock owners, or (3) buy back of outstanding stock to increase its price. In which, case the "owners" benefit and not just a corporate class.

The privileges of a select few individuals never justify ignoring the rights of the collective, which - in this case - are the shareholders (and property owners). It is foundation of basic inequality in America, that perpetuates are ruling class of plutocrats. (And, when they mistakenly obtain power in Washington, all hell breaks loose.)

"If U.S. firms stopped paying taxes and stopped hiring American workers, that should end any type of welfare."

Yeah, right. When pigs sprout wings.

They Call Me Bruce

The so-called capitalist endeavor in the U.S., more so than any nation, with the exception of a few communist nations, thrives entirely on welfare funded by the taxation of individuals in this country. Deny that. All of this at the expense of labor in this nation so some back water hell hole like India can thrive. Meanwhile, back in the States, more and more people, that comprise labor in this nation, are encountering yet another shortfall in the opportunities that comprise "the American dream," apparent. Continuing to subsidize the American consumerist autocracy to make war or to pay for subscription media, that ultimately generate such incredible debt, that we have to sell that debt to China (the next real superpower) and the like, is no foundation for America, the apparent dream, and that ability to lead as a nation by example. Rome, part II, will fail, and, as is typical in America, it will be far too late for anyone, that comprises labor in this nation, to do anything.

Jatin Sharma

Bettersense: "The outsourcing boom is a boon for India."

Yeah, right.

How do you feel knowing that your boon is a bane for others, put out of work and their families endangered by unemployment? Feelin' good, are ya?

The earth being flat nowadays, it extends beyond India. So, just wait till dislocation happens to you. Then we'll see what you think.

What goes around, comes around.
http://www.itoutsourceonline.com

Anonym

I think apart from India, majority of the developed countries should make use of this boom in India to reduce the effects inflation in their home country. For example, USA. US companies can benefit majorly by outsourcing to India reducing their costs upto a tenth. For outsourcing, chat, email or back-office support, visit the website http://www.outsourcebackoffice.com

Live Chat Support Software

A website without a live chat would be something like - A customer walks into a car showroom and looks at all the models; he spends some time, and walks out of the showroom with a contact number in hand. He may be left with numerous questions in mind. He may or may not contact the dealer. While a website with a Live Chat Support would be having a salesman in the showroom who can study the customer from the moment he enters the showroom, solving his answers all along and sending him back with all his queries well attended!

business process outsourcing

Fusion is your round the clock outsourcing solution provider. We have the capability to provide customized business solutions and strengthen your brand name and your relationship with your clients. This helps to increase customer satisfaction and maximizes your clientele base. We actively assist you in improving your company’s methodologies and resources by providing cost effective BPO solutions.

KPO Companies

I think this post is brilliant. Thank you for your thoughts; you bring up an interesting point. Outsourcing companies in India are now increasingly focusing on KPO strategies. India is gearing up; individuals and companies alike are now trying to harness this new wave – the KPO wave.

- Yolanda

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Call Center Services

The outsourcing boom is a boon for India. Indian economy is definitely booming and I myself can see vast improvements in the country in the past few years.

Telemarketing

Outsourcing has definitely brought about some changes in India's economy. However, over the years more countries have reaped the benefits of outsourcing like the Philippines and China.

Business Process Outsourcing

In Indian economy has got very good changes because of the outsourcing. Indian outsourcing companies are focusing on many areas like LPO (Legal Process Outsourcing), KPO(Knowledge Process Outsourcing) & IT Outsourcing.

Business Process Outsourcing

INDIA is the big outsource for Business Process Outsourcing. Business Process Outsourcing (BPO) is a division of Outsourcing which includes contracting of operations and responsibilities of a specific area of business functions, to a third party service provider. BPO has been there in the manufacturing industry for many years now. Manufacturing industries typically have big divisions such as suppy chain that require services to handle.

Nakliye Firmaları

Nakliye Firmaları Olarak Bu Projeyi Desteklemeyiz. Web Tasarım Konusunda Yardımları Dokunan Çengelli İnternet Hizmetleri ne Ayrıca Teşekkür Ediyoruz. Bilgi Kaynağı ve Webmaster Portalı Olan Windows Belediyesi ise Gerçekten Çok Başarılı Bir Site

bpo services

It's so amazing how outsourcing brought many benefits to a country.

bpo services

Call center outsourcing plays very well in recession.

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