[lit-ideas] Re: How to Force the Rich to be Patriotic
- From: Eternitytime1@xxxxxxx
- To: lit-ideas@xxxxxxxxxxxxx
- Date: Tue, 10 May 2005 08:33:03 EDT
In a message dated 5/10/2005 7:12:24 AM Central Daylight Time,
cabrian@xxxxxxxxx writes:
Thomas Sowell wrote a column persuasively arguing that we are by-in-
large exporting low-wage jobs while importing higher-tech, higher
wage jobs: http://www.townhall.com/columnists/thomassowell/
printts20040115.shtml
HI,
I think you have been away far too long. <g>
I still wonder how the libertarians are okay with a larger deficit, though.
Maybe you can explain this to me?
What you say about the whole higher wage jobs being imported to the United
States strikes me as someone who is a bit out-of-touch with the trend-tracking
and actual happenings (he is talking about the United States? Not India or
China?)
More and more of the higher-tech jobs are being outsourced. In fact, your
money management is also being outsourced. And, not just the low-tech
managment systems.
Medical tourism is up, the creative class is beginning to pack their bags
and in some ways it is not so horrible as I do try to be a bit more globally
minded and yet...there is the traditional conservative within me who desires to
protect and care for my own...and then care for the rest of the world. (My
world, though, is obviously a bit larger than that of others...)
My neighbor at EDS is well aware of what is happening and is trying to
figure out what his next career move will have to be -- every time he thinks of
something, he hears of how that is being outsourced, too. I first heard of
the
below from him...
I have read of and know of some members of the security industry who are a
bit concerned with all our financial data being sent overseas.
Oh, and curious--you won't have a problem with the elderly being out on the
streets in about two years? You'll be able to step around them just fine?
You have no care for the Other?
Waiting for the elderly to be in the streets so we can gauge the hardness of
hearts,
Marlena in Missouri
Datamonitor: Financial services sector outsourcing to grow
It's expected to double over the
News Story by Patrick Thibodeau
MAY 05, 2005 MAY 05, 2005 <NOBR>Offshore outsourcing by financial services
firms will double over the next four years as these companies turn over larger
and more strategic parts of their operations to offshore providers, reported
market research firm Datamonitor PLC.
Anders Maehre, managing analyst at the London-based company, said financial
services firms in the U.S. spent about $590 million on offshore services from
third-party outsourcers last year, while their European counterparts spent
about $480 million overseas.
But by 2008, Datamonitor expects offshore spending by financial services
firms in Europe and the U.S. to nearly double to more than $2 billion, said
Maehre. Among the services financial companies will increasingly send offshore
are business process functions such as mortgage processing, insurance
underwriting and claims processing.
Financial services firms are asking their offshore providers to play an ever
larger role in core operations, said Maehre. Providers that were initially
tasked to perform specific application and support work, for instance, are now
being asked to take over the development area, he said.
In some cases, the rationale behind these expanded outsourcing deals isn't
just cost reduction, said Maehre. The move is also seen as an opportunity to
improve business processes that companies may be a struggling to fix
internally because of political resistance.
Offshore providers are also reacting to customer demand for more extensive
services by buying up consulting capability. Last month, two large offshore
firms, Satyam Computer Services Ltd. and Cognizant Technology Solutions Corp.,
each bought consulting companies to better enable them to help companies with
strategic IT development.
"We have seen the market evolve, and the expectation of our customers [has]
changed dramatically over the last few years," said B. Ramalinga Raju,
founder and chairman of Hyderabad, India-based Satyam. "Customers are no
longer
content with getting the low-end technology services from offshore."
Satyam last month acquired Citisoft PLC, an investment management
consultancy, for $23 million, with an additional performance-based payment of
up to
$15.5 million over a three-year period.
Teaneck, N.J.-based Cognizant acquired Fathom Solutions LLC for $19 million
in cash and stock, and a "contingent consideration" of $16 million payable in
two years. That firm was founded by former Accenture executives in 1999, and
has expertise in financial services and telecommunications.
"We're continuing to move up the value chain in the services that we offer,"
said Francisco D'Souza, chief operating officer at Cognizant. He said the
purchase will better enable his company to give customers "the best of both
worlds" -- strong offshore capabilities coupled with consulting services.
The India-based firms are also competing against U.S.-based providers such
as IBM and Electronic Data Systems Corp., which have been building up their
own offshore centers to add to their existing consulting capabilities, said
Maehre.
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