Monthly archives: November 2003

The article discusses the effects of outsourcing on the American Middle Class. Many people in USA are now becoming ‘India-aware’ but are they not aware how developed nations and their coporations have been exploiting developing nations from years. But again we cannot blame them, cause almost all developing nations are headed by fully corrupt politicians.

The outsourcing of America’s jobs

Today, consistent with economic globalization policies, corporate America is either importing less-costly immigrant labor or shipping jobs out of America and into underdeveloped countries, where profits can be maximized. Jobs are being taken out of the U.S., while President Bush is busy telling Americans that they will see more jobs.

At the same time, he is pushing to reduce regulations on industry to increase overseas trade. And who do you really think is going to reap the benefits of any proposed tax relief? Government is coerced into fostering legislation that allows corporations to carry out their plans (i.e. The North America Trade Agreement, etc.). Hence, major corporations are downsizing their American workforce and at the same time exporting jobs into Mexico, Latin America, Taiwan, China, India, Russia and other parts of the world.

According to Tom Drury, managing director of Vertex, a major customer services operation set up in 1996, more British jobs might be relocated to India, but he believed that ‘the situation is over-hyped‘.”

Article :

The Pitfalls of International Outsourcing

Subir Roy of Business Standards interviews of Harris N Miller who is president of the Information Technology Association of America (ITAA), which represents over 500 leading IT-related companies in the US.

“What is your role in the US?

The role of IT in the US is to stop bad things from happening. We want to stop governments from imposing restrictions on work going offshore, stop there being additional restrictions on immigration. If the opponents define the debate as a win-lose situation, that if the Indian industry grows, the US industry falls, then we, the US and the Indian industry, are all in trouble. If we define the debate in the US and in India as a win-win and be mutually together then the opponents are going to fall by the wayside.

It has been said that it is necessary to seek a far higher level of political support on the issue in the US than available so far.

Ans.

Even the strongest supporter of globalisation in the US Congress is not a strong supporter when unemployment is 7 or 8 per cent in his Congressional district. The ITAA and its member companies who support globalisation don’t support offshoring. We don’t support losing jobs to India. My membership [of ITAA] is US-based.

We support fair global competition, we oppose restrictions on it and we have to convince our elected officials day in and day out. My lobbying message is: that’s a better model than the restrictionist and protectionist one. And we can give them things to do, like promoting education and training in the US. We’ve been falling behind in the US on this. ”

- Business Standard .. ‘Outsourcing to India is a controversial issue’:

EU-India Business Summit

India and the European Union begin one of their biggest-ever trade facilitation talks on Friday as the fourth EU-India Business Summit kicks off with opening session address by External Affairs Minister Yashwant Sinha and EU Commissioner for External Relations Chris Patten.But the talks on WTO issue are unlikely to take place during the summit.

HIT Venture Funding

At a time when venture capitalists are shying away from funding start-up IT companies, Hyderabad Information Technology Venture Enterprises Ltd (HITVEL), the first venture fund floated by the state government, is not thinking of exiting from the funded companies and is rather looking at a Rs 40 crore fund for start-ups. : : Finacial Express: :

Virgin Atlantic group has decided to move the entire group’s back office and call centre service jobs to India and has has entered into a tie-up with Bangalore-based leading business process outsourcing (BPO) company ICICI Onesource recently for outsourcing the jobs initially on a pilot basis.

In response to a number of complaints about customer service calls, Dell Computer (Quote, Chart) is bringing some of its overseas business customer service back to the U.S., but stressed that it remains committed to its call centers in India.

The US of A is getting very protective and anti-india anti-outsourcing sentiments are rising sharply with legislation in eight states in the US now, compared with five states just three months ago. Shourie hits back by saying that if they will close the services market , we also have the option of closing the goods market.

We should co-operate with our competitors. But at the same time, we should not open up in goods, if walls are set up to block access to services,” Communications, IT and disinvestment minister Arun Shourie said, while speaking at the India Economic Summit

U.N. Conference on Trade and Development (UNCTAD) reports says that for developed nation the Economic pressures is pushing outsourcing.Companies in the United States and Europe are looking for competitive advantages and cost-cutting measures when they look to developing countries for IT outsourcing.