Outsourcing biggest concern for India post-Bush: Report

[OhioChick]

Source: Economic Times India

16 Nov 2008, 1015 hrs IST, PTI


NEW DELHI: Outsourcing by US companies will be the biggest concern for India due to the change in US administration next year, says a global
research firm.

"For India, the biggest concerns perhaps in over its important outsourcing industry, as the practice of shifting jobs overseas had come under fire during the US presidential campaign," Moody's economy.com, a subsidiary of global research firm Moody's Corporation, has said in a report.

In February this year, continuing to play the anti-outsourcing card, Obama, the then Democrat presidential front-runner, had said, while America cannot "shy away" from globalisation, it would have to take measures to ensure that jobs are not shipped overseas.

"We have to stop providing tax breaks for companies that are shipping jobs overseas and give those tax breaks to companies that are investing here in the United States of America," Obama had said during a debate with rival Senator Hillary Clinton in Cleveland, Ohio.

However, Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Saturday that the US has given an assurance to India that the policies to strengthen bilateral ties will continue and felt that outsourcing, a hot topic during the US presidential polls, will not be an issue.



Read more: http://economictimes.indiatimes.com/Infotech/Outsourcing_biggest_concern_for_India_post-Bush_Report/articleshow/3719101.cms

[Booster]

1. If Mr. Obama wants to succeed, this better be an issue.

[OhioChick]

3. You're right.

With the catastrophic unemployment in this country, if he doesn't do something regarding outsourcing/onshoring/offshoring/NATFA/CAFTA, etc., I highly doubt that he'll get re-elected for that second term.

The majority of people claimed that the #1 issue facing this country was the economy/unemployment.

[ChromeFoundry]

2. They ought to be concerned

a hot topic during the US presidential polls, will not be an issue.

It will continue to be a hot issue because the P.E. will still be held accountable for promises made. I know for a fact, my Congressman and Senators will continue to receive reminders every time there are job losses here in Ohio due to outsourcing/insourcing.

[ixion]

4. outsourcing has destroyed the job market in the US on several levels

first and foremost, by shipping high-paying tech jobs overseas; and second, by driving down the wage a technology professional can command in what remains of the marketplace.

The only people who benefited from this were the CEOs, many of whom are now seeking handouts.

Outsourcing and HB-1 visas need to be curtailed.

[Lasher]

15. And don't forget L-1 visas.

That's when foreign companies send their employees, often whole departments, here to take US jobs. H-1B visas are granted to individuals who come to work for US employers.

[ChromeFoundry]

17. For those that don't know what an L1 visa is...

"The United States L1 visa is a non-immigrant visa which allows companies operating both in the US and abroad to transfer certain classes of employee from its foreign operations to the USA operations for up to seven years. The employee must have worked for a subsidiary, parent, affiliate or branch office of your US company outside of the US for at least one year out of the last three years."

Is there a limit or cap on the number of L1 visas issues per year?
A. No, the is absolutely NO limit.


Can you see why companies are eager to set up a presence in places like China and India? It is a fire hose full of cheap labor.

[Ikonoklast]

5. I'm very sorry, but, yes, it will be an issue

You can be sure that at the very least my Senator Sherrod Brown will make it an issue.

He has been correct on Nafta, 'free trade' agreements, and the enormous loss of jobs out of Ohio waaaaaaay before anyone would even listen to what might happen.

Well, he was right, and everything he warned us about DID happen.

And one more thing, Indian nationals don't vote in our elections. But we do.

We can vote out those that are for outsourcing in our government.

[Waiting For Everyman]

11. Exactly. It will definitely be a BIG issue.

Our own state governments even do it. Jobs paid by American taxpayers should be given to Americans BY LAW. If nothing else, we should at least be assured of having those jobs, all of them, always. There's no excuse for it.

[Azlady]

6. I believe there are going to need to be further steps other then...

shutting off the tax breaks to companies that outsource etc etc. Possibly to include tax penalties to those that outsource as well??? Our economy is not going to recover without bringing these jobs home. We must remain strong in kind of being in the new administrations face about bringing our jobs home & ending visa programs that have taken our jobs away from us.

[rfranklin]

18. Deport the CEOs to India...

And let them live there.

[daggahead]

30. Not a good idea ...

They will live like royalty in India.

We need strict regulation on H1B & L1 workers and import tariffs on anything (including labor) imported from abroad.

[JI7]

28. we need to make these other nations raise their standards

on things like the environment, labor rights etc.

[leveymg]

7. All goods should have prominent domestic content labeling.

If you want to save a few bucks and buy that appliance made in China, fine. But, there should be big labels on the shelves informing the consumer where things were made.

I'll pay extra to buy Made In USA for the same good, but as it is, there's no way to know.

[sledgehammer]

12. Don't nearly all products have a "Made In" label?

Just flip the box over and it should be clear where it's made.

But that's only limited to the actual assembly of a product. It's much more difficult when it comes to services, or even in production when only the final assembly is done in the US. So many companies have their entire financial and operational backends developed and supported through offshoring. Only the tip of the iceberg is in the US, which allows them to say the product is Made in the USA.

And you often won't be able to find out the ratio of US to foreign employees because the offshore staff are normally not employees but contractors.

[leveymg]

25. I'm thinking of a system akin to that of the auto industry, where there's

an agreed formula for determining the origin of manufacture of components and labor.

If it works for something as complex as autos, it can be applied to lawnmowers and washing machines.

[ihavenobias]

8. K & R

[Raster]

9. Fact: All other supposed benefits aside, the primary purpose of outsourcing is to exploit the lowest

cost of labor possible, all part of the eternal corporate quest to maximize immediate shareholder value, no matter the long-range repercussions. American corporate entities are notoriously short-sighted. It seems there is always some American corporate behemoth in economic peril. Case in point: our current financial debacle. Outsourcing is a symptom of the failure of corporate America.

[daggahead]

31. Yep!

In the I.T. world, this is called a "Shared Services Model."

It is designed to make CIOs look good.

[Life Long Dem]

10. Let's do use the word bilateral

Since when has it been bilateral in offshoring jobs? Is India offshoring their jobs to us? Then what's this bilateral shit?

[crickets]

13. Excellent point. -nt

[OhioChick]

16. Nice Catch. n/t

[JI7]

26. i think it refers to foreign companies who are able to go to india to sell products

so indian businesses have competition with foreign companies.

[daggahead]

32. Yes, they are.

The company WiPro is "on-shoring," which is corporate speak for setting up shop in the US so they can hire US workers at lowered wages and bring in Indian workers from abroad.

[cascadiance]

14. We also need to subsidize students getting bachelor degrees like India does now...

Granted Indian students get bachelor degrees paid for in their own country, which aren't as valued as bachelor's degrees in the U.S., but their bachelor's degrees still are more advantageous than high school diplomas, which is the highest level of education that all Americans are guaranteed being subsidized for.

California used to do this when Jerry Brown was governor when times were better for the middle class. Why can't we go back to this?

[ryanmuegge]

19. Don't worry. Obama wants to bring more of you here to take what few jobs remain.

Either way. You'll get our jobs, and we'll get screwed. An Obama administration is much better than any other Republican, but I'm sure the working people of this country will get screwed (perhaps a little bit less).

[OhioChick]

20. Like I said up-thread...

With the catastrophic unemployment in this country, if he doesn't do something regarding outsourcing/onshoring/offshoring/NATFA/CAFTA, etc., I highly doubt that he'll get re-elected for that second term.

The majority of people claimed that the #1 issue facing this country was the economy/unemployment.


People don't forget.

[Jim Sagle]

21. Shush...don't you know you can't mouth such heresy herer at OU?

;)

[JI7]

27. so you think Obama is just going to ignore unemployment ?

this ignores everything he has talked about. Obama will also be able to influence people around the world to raise standards so it's not cheap for people to just go overseas and exploit for their own profits.

[dugaresa]

22. Why encourage US kids to go to college if the jobs they will seek afterwards are given to HB-1 visas

lets be honest, there are a lot of young folks graduating each year and folks who are unemployed because of this ridiculous program.

and why?

not because of that bullshit propaganda the media pulls out of its ass..."Americans don't have skills"...that is a farce...

its because of MONEY...

an HB-1 or L-1 visitor gets the job because they work cheap and that is it in a nutshell.

As for outsourcing...I have personally watched as a company went from Indian outsourcing to Chinese Outsourcing and now to Polish outsourcing looking for the next cheap rate...but they expected quality work...bwahahahaha the big problem...communication Unless you move the entire outfit overseas...you can't really set up the needed communication to facilitate quality work. The problem is that the managers don't really want to move to Bangalore with their families...or to some remote village in Slovakia...they just want to find cheap labor to do the work to make the bottom line look good because some twit at the top of the food chain told them that they better sell 30% more this year with 10% less in investment dollars.

[daggahead]

33. It would be interesting to find out ...

The percentages of types of degrees US graduates are earning since 2000.

I'd be willing to bet Business Administration is near the top, and computer and engineering are somewhere in the middle.

[Trajan]

23. I realized the defect on which outsourcing will fail ....

There will be a point where, if a nation offloads it's productive highly paid employment to another nation at lower rates of pay, the pool of available buyers in the marketplace decreases, and will eventually reach the point where the producer will have to reduce the number of lower paid offshore workers due to decreased sales volume and reduced orders ...

This is a degenerate economic system .... It will grind to a halt, because it reduces pay to the point that buyers disappear ....

I am pretty sure that is happening to some degree right now ....

I read last week that Chinese factories are laying many workers off, due to reduced sales of manufactured products ...

[Skittles]

24. they can all fuck themselves

[OhioChick]

29. You say it like it is, don't you, Skittles?

:rofl:

[Skittles]

34. oh, this morning

fucking Egypt called hysterical because their job stream was terribly late because it was stuck behind an abended job - which would have been understandable had that job not been down for six hours. Monitor your job streams much, do ya? :mad: