Outsourcing : Beyond the Hype

Discussion in 'Politics & Current Events' started by prk166, Jul 5, 2005.

  1. prk166

    prk166 BigSoccer Supporter

    Aug 8, 2000
    Med City
    Despite what the media would like us to believe, their is not a infinite supply of educated workers in other countries suitable for performing outsourcing tasks. In fact, I wouldn't be suprised if WinPro and others haven't already sucked up all the 1/2 decent computer programmers in Hyderabad and Bangalore & are praying for the north of India to hurry up and figure out how to educate all the kids they keep churning out up there.



    http://www.economist.com/business/displayStory.cfm?story_id=4135319

    Then again, says the McKinsey Global Institute, if current demand continues, the supply of suitable labour in the popular cities of Prague and Hyderabad will run short by 2006 and 2008 respectively. The demand for engineers from Britain and America alone, it claims, will use up the suitable supply in all of China, India and the Philippines by 2011. The institute advises firms to choose their locations carefully. It is hard to switch later “because of sunk costs in physical and human capital”.
     
  2. argentine soccer fan

    Staff Member

    Jan 18, 2001
    San Francisco Bay Area
    Club:
    CA Boca Juniors
    Nat'l Team:
    Argentina

    I wish Americans would stop whinning about outsourcing. Outsourcing has helped people around the world immensely without being that much of a burden in the US. These jobs bring real help to needy people as much or more than all the aid we are sending.

    Come on, we have more alternatives here in America if somebody from India or Philippines takes our job. But for people in those countries, that job may be the difference between a decent life and real poverty the likes of which even the poorest people in America will never see.
     
  3. Ray Luca

    Ray Luca BigSoccer Yellow Card

    Feb 2, 2005
    I can't do buisness with American companies who out source. There English is like it was learned from a machine. They say things that don't match question you asked. If they have a problem they put you on hold and come back with a bad answer or they discontect. They are afraid of getting fired.

    So I find an American who works for the company eventually, and tell them I am going to stop using them with computer problems or banking, and I tell them why.
     
  4. servotron

    servotron New Member

    Mar 4, 2004
    St Paul, MN
    That will be of great comfort to my friends who lost their job as the direct result of outsourcing. I'll let them know. :rolleyes:
     
  5. Sine Pari

    Sine Pari Member

    Oct 10, 2000
    NUNYA, BIZ
    It's actually WiPRO

    And they were in the process of outsourcing me until I found a new job with folks from WiPro
     
  6. Ray Luca

    Ray Luca BigSoccer Yellow Card

    Feb 2, 2005
    Ask the next Indian you talk to when trying to get banking information if they ever went out with a Lepper. You might be very surrprised by their answer.
     
  7. Ray Luca

    Ray Luca BigSoccer Yellow Card

    Feb 2, 2005
    Tell your friends they are stupid for working for people. Start your own small business instead they will be better off.
     
  8. bigredfutbol

    bigredfutbol Moderator
    Staff Member

    Sep 5, 2000
    Woodbridge, VA
    Club:
    DC United
    Nat'l Team:
    United States

    Well, if his or her answer is anything but "fvck you, you racist jackass," I would be a little surprised.
     
  9. argentine soccer fan

    Staff Member

    Jan 18, 2001
    San Francisco Bay Area
    Club:
    CA Boca Juniors
    Nat'l Team:
    Argentina
    I am sorry your friends lost their jobs, but there are plenty of decent jobs still available in America. That is why people risk their lives to come here.

    Have you ever been to India or Bangladesh?
     
  10. Matt in the Hat

    Matt in the Hat Moderator
    Staff Member

    Sep 21, 2002
    Brooklyn
    Club:
    New York Red Bulls
    Nat'l Team:
    United States
    I thought all of your friends just died.
     
  11. prk166

    prk166 BigSoccer Supporter

    Aug 8, 2000
    Med City
    I hope it is. Unfortunately it doesn't help comfort those US Air folks laid off in Philadelphia thanks to SWA's arrival. :rolleyes:
     
  12. obie

    obie New Member

    Nov 18, 1998
    NY, NY
    Club:
    New York Red Bulls
    Nat'l Team:
    United States
    My company outsources coding and some customer service to Hyderabad, but India is considered close to being maxed out even though the applications still keep pouring in (our HR head in India says we average a app-to-job ratio of about 50:1, down from 100:1 less than two years ago). The problem is that the Indians who can speak English well enough to be understood by American clients are overeducated and thus ambitious, so they don't want to hold call center jobs for more than a few months. Our Indian turnover is through the roof over the past year. We're now likely going to put new client service centers in Maritime Canada, probably Nova Scotia, because of the tax breaks available in former shipping and ship-building towns. Long-term India is probably still cheaper (US$ 7,000 per year per worker in India vs. US$ 20 - 25,000 in Canada), but we'll probably take the tax breaks and run at the first opportunity because there's no such thing as "long-term" when it comes to call centers. And if we decide to stay there, the people we'll hire are older and less mobile.
     
  13. Ray Luca

    Ray Luca BigSoccer Yellow Card

    Feb 2, 2005
    Dumb cvnt there answer is yes
     
  14. Mikeshi

    Mikeshi New Member

    Jul 14, 2004
    Jasper,Ga
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    What's the answer here though?
     
  15. argentine soccer fan

    Staff Member

    Jan 18, 2001
    San Francisco Bay Area
    Club:
    CA Boca Juniors
    Nat'l Team:
    Argentina
    The challenges you mention are not unique to your company, but I don't think those particular challenges are likely to stop outsourcing. As you say, your company is adapting. I think companies will spend more and more time training people overseas for their specific needs, and there is a steady supply of people willing to be trained.

    The only way outsourcing from America will stop is when the standard of living around the world becomes less unequal. Unless, of course demagogues find a way to coerce the government to somehow make the practice illegal, but I have too much faith in America to believe that this will happen.
     
  16. dj43

    dj43 New Member

    Aug 9, 2002
    Nor Cal
    It never ceases to amuse me when I see read stories about "outsourcing" with rarely any mention of the "insourced" jobs from companies like Toyota, Mercedes, etc. Couple of months ago I heard a report that indicated the US is +1.5MILLION jobs in the insource/outsource list since '02.
     
  17. Scarecrow

    Scarecrow Red Card

    Feb 13, 2004
    Chicago
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    So the time and money they spent to learn their profession should be chucked away so that someone in another country should get the opp that they worked for?
     
  18. obie

    obie New Member

    Nov 18, 1998
    NY, NY
    Club:
    New York Red Bulls
    Nat'l Team:
    United States
    We're not giving up on India. The problem is taking the organization there from tactical cost reduction to strategic revenue / profit growth, which is what needs to happen if we're going to provide greater employee mobility and reduce turnover costs. Everyone in the US only thinks of India as a tactical place. We sell no products / services in India, we're not really developing anything new there, and we're not giving our employees real growth opportunities. Eventually -- and by eventually I mean maybe within 10-15 years, not earlier -- the demographics are going to turn against us and everyone else and the steady stream of young graduates will slow, and the middle-aged Indian population is going to expect a lot more than they're getting now. Our best people already are demanding things like American expat assignments and people management opportunities that we are not able to provide right now. It's like India is growing up too fast for us.

    That's why the move to eastern Canada is interesting long-term. Those employees are going to be much older, and many of them are likely to be on their second career after the first ones in manufacturing were eliminated in the global marketplace. They may be more expensive but they will not expect as much from the company. Hence, we don't need to turn that operation into a strategic profit center.
    I can't ever see a day where outsourcing will be illegal. I could see mandatory severance / job training costs increasing but outright job protection doesn't seem feasible.
     
  19. argentine soccer fan

    Staff Member

    Jan 18, 2001
    San Francisco Bay Area
    Club:
    CA Boca Juniors
    Nat'l Team:
    Argentina
    We just have to face it. In this day and age we have to constantly be reinventing ourselves and retraining ourselves in order to make a living. But in America is not hard to do it, the opportunities are there.
     
  20. Scarecrow

    Scarecrow Red Card

    Feb 13, 2004
    Chicago
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    But not everyone can afford to goto school and retrain. I have a family, I do not have the time to goto school and learn something new. Nor do I want to start over at the bottom of any new field. I think this is unreasonable and puts undue hardship on US workers. And all so a company can save a few bucks? You do know that in America most people are only 1 missed paycheck from bankruptcy right?
     
  21. Revolt

    Revolt Member+

    Jun 16, 1999
    Davis, CA
    Club:
    San Jose Earthquakes
    Nat'l Team:
    United States
    I agree that outsourcing is overrated. We will find that the quality of work isn't going to as good as here in the US.
     
  22. Matt in the Hat

    Matt in the Hat Moderator
    Staff Member

    Sep 21, 2002
    Brooklyn
    Club:
    New York Red Bulls
    Nat'l Team:
    United States
    Start a company doing what you do now. Then you can pay yourself to learn. And all of the flexibility is in your hands.
     
  23. speedcake

    speedcake Member

    Dec 2, 1999
    Tampa
    Club:
    FC Tampa Bay Rowdies
    Nat'l Team:
    United States
    You, complaining about someone else's english? Dude, get real.
     
  24. speedcake

    speedcake Member

    Dec 2, 1999
    Tampa
    Club:
    FC Tampa Bay Rowdies
    Nat'l Team:
    United States
    What kind of statement is this to make?
     
  25. speedcake

    speedcake Member

    Dec 2, 1999
    Tampa
    Club:
    FC Tampa Bay Rowdies
    Nat'l Team:
    United States
    Easily said...
     

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