quality and innovation of india’s workforce is really improved
and it comes at cheaper price.
The bigger factors here are lower costs and improved telecommunication. American workforce is probably a lot better in quality and innovation.
Actually no Roman. For the BPO industry mentioned in the article, most back office work is done by higher quality people and the output is much bettr. For ex..In trade services, the back office reconcilation is actually done by CA 's (CPA's) where as here in the states a lot of back office folks are not even college graduates. Secondly, mos Indian companies dealing in outsourcing are employing Six Sigma frameworks for continous process improvements, which is lacking on a wider scale in the US and west. Indian technology companies are generally offer higher quality products and services. Ohterwise, the compeitive pressures from places like China, Russia, Philippines, Eastern europe would have cut into the marketshare. Bu that has not happened. Indian companies are big on establishing best practices and international standards that even American companies don't have. CMM, ISO, COPC, etc..
Where are we headed? In the next few years you will a lot of captive facilities in India. Functions such as equity research and fund accounting and even compliance will begin to move offshore. In the end, all depends on the resiliency and innovativeness of the American economy. Loss of jobs, but increased sahreholder value would mean a change in the economy once again. Americans ar the most innovative people in the world. We will be ok.
Loss of jobs, but increased sahreholder value would mean a change in the economy once again
increased shareholder value doesn't put bread on the table on day to day basis. It's the jobs security that ensures to put enough money in people's hands to invest in shares to begin with. Jobs and consumption go hand in hand.
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*Originally posted by Roman: *
increased shareholder value doesn't put bread on the table on day to day basis. It's the jobs security that ensures to put enough money in people's hands to invest in shares to begin with. Jobs and consumption go hand in hand.
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None of this matters. In the end, productivity growth alone drives long-term economic growth, which is what creates more and more jobs.
A fellow named Solow explained all this quite well.
Increased shareholder value does put bread on he able. Look at the percentage of US populations vested in the market through mutual funds, direct equities and pension schemes...all these are affected by shareholder value. We are not talking about India or Pakistan...americans are vested in greater ways.
The greater risk is not jobs perse. But deflation like in Japan. Deflation is the biggest worry and it is the negative risk of globalization.
From a purely economic point that may be true but if greater numbers of people are unemployed, productivity been high or not, that leads to lots of other social problems. In an environment like the US, where work takes more hours per day then anything else, what does a person do when they are unemployed (and its a significant % of the population). Work is a substitute for a lot of peoples problems and lack of it has definite social and economic problems that most models dont consider. Plus its an important semi-direct driver of shareholder value through consumer confidence.
Re: India winning higher-status jobs from US
hmm...i bet that still this quality doesnt match the paki brains...
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*Originally posted by rvikz: *
quality and innovation of india's workforce is really improved
and it comes at cheaper price.
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Just price alone without quality don't cut it. Otherwise Chinese and any 3rd world country can do it.
Japanese did that with cars. Chinese did that plastics. India is doing it with software and process.
Apart from the great engg talent, we can also put five people to quality check instead one pair of eyes and still come out ahead.
But the cost savings and quality explosion comes at a great price - jobs. At some point in near future India and US have to strike the right balance about export of jobs. I don't see that happening without a significant reduction in wage levels in the US.