Tuesday, February 26, 2008

Outsourced

I was surfing through the net.. digging up some past.. and I found Senator Barack Obama's speech after the Virginia Massacre. Bill Smith glorifies Obama's speech. He says "his instinct for abstraction and larger themes" is what endears Obama to the people! See the full article here. Quoting Obama...
"There's also another kind of violence that we're going to have to think about. It's not necessarily the physical violence, but the violence that we perpetrate on each other in other ways," he said, and goes on to catalog other forms of "violence."

There's the "verbal violence" of Imus.

There's "the violence of men and women who have worked all their lives and suddenly have the rug pulled out from under them because their job is moved to another country."

I read this and went "Whaa...". I can imagine a lay man talking about this.. but a senator, a prospective president? What was he thinking... Now I am irate that this is about outsourcing.. but that is not all, I am very upset because I thought Obama was a level headed guy.

(Pict Courtesy : http://www.kuleuven.be/thomas/secundair_onderwijs/in_de_kijker/37_globalisation.php)

But apparently he doesn't have the faintest clue about globalization. Did he know that globalization is a two-way street.. That it affects other countries in the world too? Come on did you really think outsourcing was only a problem in the US and everything was hunky dory on the other side? Oh yes, the other side of the grass is green is not it?

In India Globalization opened free trade. While we are on that, let me point out that America was always the advocate for free trade, as for India they were dragged in Kicking and Screaming. For America it opened up a huge market for their goods. A consumer market of over billion people, imagine that!

Dell and Microsoft sell their products to the billions in India. Coke and Pepsi have replaced the local Thumbs Up and Gold Spot of erstwhile years.. Ford and GM not only sell their cars there, slowly replacing Ambassdor's and Maruti's. They even have factories there and make use of the cheap labor. And where do you think the money goes.. to the US of A!!!

Subway, Mc Donald, Pizza hut and KFC adorn every corner slowly replacing the Indian fast foods. Further Nike and Adidas, Tommy and Channel have discovered a huge market in India. And many others are going there too. Including the supermarket chain Walmart. Imagine what this means to Indian brands and age old companies. This means more competition and the urge to do even better. In the end the consumer is benefited by the variety and competition.

Here is a 2002 report on India-US Trade and Economic relations. In the current year alone $830 million was the outflow from India to the US. Read more here. And the trend is only increasing with more and more revenue coming in every year!

That is the other side of the globalization coin.. if it is outsourcing in the US, it is free trade in India and China! But still outsourcing is talked of akin to violence. I mean get some perspective!! Gone are the days when Indians were replacing Americans and taking their jobs as Obama put it! Now Indian companies are recruiting Americans and creating opportunities in America, Britain, Australia , China and many other countries. Opening development centers in the US and offering jobs to the fresh engineers and management graduates from US Universities. This is globalization for you. If this had not been done, the same job would have gone to an Indian! But that is the beauty of globalization.. breaking the barriers. The 21st century is here, we better gear up and get ready for a global world and a global economy!

(Pict Courtesy: http://www.newint.org)

[Edited to add. Here is a video from Discovery Spotlight. Thomas Friedman the author of "The World is Flat" visits India to explore the other side of outsourcing

]

30 comments:

Sumana said...

Very well said. Actually our politicians like ABV and advani are much better. They know what they talk atleast on these terms. Yes that is true TCS infosys have been hiring rampantly here too. I know so many of my friends who are either gc's or citizens are employed here by the Indian companies. So much said and done, they better change their statements.

Preethi said...

Oh no.. ABV and Advani are no better.. they resist the other side.. change will always bring resistance.. but we better accept it.. the change is here to stay.. its better accept it or get left behind!!

Savani said...

YAYYYYYY! I am not alone. Read Bastiat??? Awsome post. Can we be pinkie friends now? :)

As far as Obama is concerned. He is planning on taxing corporation that outsource.. like an outsource tax. It's crazy. Which ofcourse means corporations will simply find another, less direct way to outsource - like maybe spin off separate companies that employ overseas people and just "buy" the whole service. I am sure this is a illy way and I am sure there are other methods.

Truth be told, I don't think there is any major difference between Hillary and Obama's policies. Both favor higher taxes, crappy nation-wide healthcare. I don't know if Obama actually will follow up on the promise of the new tax or if its just campaign talk since Iraq is no longer a hot issue. I am putting my money on McCain. I like people who are financially conservative and let me keep my money :)

rayshma said...

awesome post!
and i agree with dotmom... i couldn't really grasp much of a difference in obama & hillary's policies... but of course, i just put it upto my comprehension... or the lack of it! :D

Preethi said...

Dotmom - Oh yes pinkie friends!! I am all for Mc Cain too.. although I started out hoping for a change with Hilary or Barack.. a history setting of sorts.. their campaign politics has left me sick to the stomach!! Bastiat - All I know that he is an economist.. have never read him.. should I?
Rayshma - Oh yeah whats with the picture in Muslim garb now or the Senator of Punjab barb earlier.. these two are crazy!!

aMus said...

Whoa!! great post here, closet geek...glad you decided to come out of that closet :)

The elections are turning nasty now...with each slinging mud at the other

Preethi said...

mmm......preethi, interesting post there. I agree that it was a stupid comment from a Presidential hopeful but such a huge cry for this is not necessary... Indian news channels i mean.. saw the links..I think they wanted to take a bite on this hot election campaign going on in the US, they were just watching it and suddenly had an opportunity to so they kind of made use of this flippant remark and had a go. Obama has not come up with policies! And he will never. Know why? America is a capitalist country. It is all about money here. so there is no way he's going to stop outsourcing. He can't afford to. Who do you think gives him all that money for campaigning? They...the lobbyists. Who are this 'they'? They are the ones with the money. They are the ones outsourcing. they are the ones bringing in profits for the country. They are the ones giving him the money. So it is all election talks. He'll be visiting India soon dear. And everything will remain exactly the way it was, it is.
But i still think.... Obama is more genuine than Hillary or Mc Cain. Hillary said 'Gandhi if in America would have worked in a pertol pump'!! in 2006..mm.. something to that effect... She apologised later of course but i just lost it after that.

Preethi said...

Suma - Tell me about it.. I have almost stopped following the mud slinging now.. but sometimes do with one eye...
Preethi - This is not the only episode. Both Hilary and Obama seem to be mud slinging at each other.. and Obama has been vehement against outsourcing. Having said that, of course he is not going to do away with outsourcing when he becomes President. Thats ridiculous for US Economy!! And I bet his advisor's wont let him. Kennedy was against outsourcing too.. but he visited India and buttered them up!! Thats not my point.. if you are going to talk about something, do your ground work and research!! This is not what I expected from an educated person.. let alone a senator and a presidential candidate!! I am very disappointed with the Democratic faction.. Mc Cain is probably better with his conservative approach! I don't know.. like everywhere in the world.. election here is a mud slinging match as well!!

Fantasies of a Lifetime said...

i guess thats the world of politics..ppl say things they dont mean. . .just stupid vote bank politics!

Neera said...

Very well said,Preethi!! Somehow I started out enthusiastic following all the election drama here but couldn't keep up with it> Your post made me catch up a bit. Do keep writing more closet geek!!
And hats off to u for managing so much - all those creative outbursts, keeping up with these day to day affairs apart from being a mom :)

Vijay said...

Well it is election time and thats how politicians talk. Once elections are done and dusted, these issues will be swept under the carpet.

Now coming to the point of globalization, I am not really confident that it will work . Sure it provides more employment opportunities than a socialist/communist economic model but does it really work? Globalization is totaly based on the strength of dollar/euro currencies. What will happen when they lose their strengths against Third world countries?I know that it is going to take a lot of time but when that happens, all the development that took place will be finished.

Preethi said...

Vish - True!
Neera - Oh no I don't manage to do half of what I want to :)
Vijay - I want to disagree.. globalization is already underway and that is the reason the dollar is falling .. a balance will be reached soon.. so it will not be as profitable as it is today.. but it will be global nevertheless! There is no way to go from here than further on in the making of a global world. The development can never be finished!
Am not able to reach your blog by the way... do you write too?

Kowsalya Subramanian said...

wow closet geek. all your blogs are too good man and need i say i am hooked on them :)

Anonymous said...
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Preethi said...

Kowsalya - thanks.. you made my day!!
Mogul - something wrong with your blogspot.. I hope I did not download a virus!!

Vijay said...

Preethi, There are a zillion reasons why dollar is falling and Globalization is one of the reasons and rather the only reason. All currencies have appreciated against the dollar because of weakness in the american economy. Otherwise the rupee should have appreciated against all other currencies which has not happenned. Regarding the assumption that globalization is the only way going forward, keep in mind when the Soviet Union was at its peak, Communism was the only way forward for the Eastern bloc countries. As long as things are rosy, you tend to ignore the imbalances in the system. Just look at the way South East Asian economies i.e the Asian tigers collapsed during the financial crisis some years ago. At that time globalization was blamed as the root cause of the problems. I am not against Globalization but to blindly believe in it and ignore the voices against it is not correct. Only time will tell if Globalization will succeed and I hope it does :)

and I dont write bcoz I am not gud at that . I came upon ur blog when I was going through Sarada's blog and went through your blog which was very interesting

Anonymous said...
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Preethi said...

Vijay - About the decline of the dollar.. USA is no longer going to monopolize the world economy.. having said that the American economy is believed to be resilient enough to bounce back.. whether that really happens or not remains to be seen. But now we see the beginning of a new trend.. the online dollar.. Google dollar, this is the latest in globalisation and maybe this trend is here to stay!!
In free trade there will be winners and losers. Globalisation calls for a great amount of collaboration among the players I agree... but it is beneficial both ways so why not collaborate? this is nothing like communism which aimed at raising barriers, globalisation is just the opposite it breaks all barriers.. and in a mature civilization it seems like the only way forward. However moving forward is never easy, there will be many road blocks and protests, as well as a solid policy needs to be in place. Which is why organizations like WTO exist.
By the way.. you should write too.. you write well!

Aryan-Arjun said...

preethi..indeed a point to ponder. Well written...
Aryan's mom

Vijay said...

Preethi - I am not so sure that it is beneficial both ways . One of the strongest arguments abt glo... is that jobs created more or less equals jobs lost.Globalisation in many respects is an extension of colonialism with the only difference being icons of colonialism like columbus being replaced by Wall Street CE0s in suits.Do you think we will be able to collaborate putting aside our cultural,religious and linguistic differences? I dont that will happen.
Lets say it happens. What do we end up with ? Instead of being citizens of countries, we will become citizens of corporates. The demarcation of borders will evaporate and we wil be left with no roots to fall back on .

Preethi said...

Vijay - I agree with you on the point you make about losing roots. That is the biggest outcry in India against globalisation... losing the very essence of the culture and traditions that hold us together! And I partially agree with you on the colonialism. Yes this resembles colonialism and we can clap our hands and say now.. tables turned. See the way UK Premiers now run to India to build relations? They can't do without it!
Having said that, I would have to disagree with you on the collaboration. We can and we do. Why in India so many different cultures and traditions collaborate, we will do this at a global level. That is not to say it will all be hunky dory. No.. that is not the point I am going to make. Like all major global changes this will leave a mark and not all of it will be good. But the point is I believe the world is going global regardless!!

Vijay said...

Only Father time will decide whether it works or not. Maybe in 50 years I will come back to this post and we can conclude who was right :)

Vijay said...

Only Father time will decide whether it works or not. Maybe in 50 years I will come back to this post and we can conclude who was right :)

Prats said...

This was a great post....!!! Change is happening, and we got to be ready to accept any kinds, not only what suits our country and our needs....we got to be a little more accepting...it goes a long way...but having said this...as if Obama or Hillary ar egoing to listen :(

Prats said...

and got to tell you all your blogs now are so interesting....love coming over here...though I get all confused...

Preity Angel... said...

Your blog is awesome.. I enjoy reading it.

Keep up the good work

Yet Another Mother Runner said...

This is my first time peeking at your awesome geeky closet! Neat stuff!
I was seriously following through, this being my first time to vote and all...but am terribly disappointed with the things are going now...

Anonymous said...

umm...outsourcing is the new business model...unfortunately...jobs will move from the expensive eurpoean locals to the much more cost effective indians and pakistanis...its about bringing the cost of living down in the homeland....which will never happen...

Anonymous said...

This was refreshingly good!
There is a lot of reason in what you have written here! Agreed.

[I am digressing from the intention of this blog but for your thoughts...]

Looking at the impact of the current trend, don't you see the rise of outsourcing stopping the research interests in India bigtime.

We need ppl who could innovate and make things happen to take us to next stage.

But what we are going through may not give us the best of the environments to achieve this.

I am dreaming of startups like Googles and Microsofts coming up here[India] which could change face of the world for the decades to come!

sb said...

i thot it was jus the incessant musings (i hope i got the name rt) but here i am hooked to closet geek.. very well written - to the stand point. let's see if any welcome change sets in his period.. n dumpin the outsourcin gig is surely not a good idea.. lets hope for the best..