Synergy Extreme India

अपने चरम सेवा प्रदाता.
CATEGORIES
 
  • Company News
  • Local News
  • Outsourcing News
  • Technology News
  • Uncategorized
  • ARCHIVE
     
  • May 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008
  • March 2008
  • February 2008
  • January 2008
  • December 2007
  • November 2007
  • October 2007
  • September 2007
  • August 2007
  • July 2007
  • May 2007
  • April 2007
  • March 2007
  • February 2007
  • January 2007
  • December 201
  •    
    IBM and the Rebirth of Outsourcing

     

    India’s chief finance minister may have made calls to the heads of IBM and several other large US tech companies to tell them that the huge developing nation was hemorrhaging a high end tech jobs.  The call happened, looking at the statistics from India, it would be easy to see that the costs of outsourcing technology work to firms based on the dropping.  The unions and members of Congress spent a great deal of time complaining about the number of the US jobs that is being sent abroad.

    The issue seems to have receded recently, the recession has deepened and large American companies that have been able to export them.  The economy losing about 600,000 jobs a month, the need for the efficiency though outsourcing has become less immediate.  The outsourcing may be making a big comeback as word leaked that IBM would cut about 5,000 jobs in the US and move the work to India.  The beginning of a new wave of exporting of American jobs to developing countries which have a large pools of well-educated workers. At a rate of 7 percent, India’s GDP grew for the last two years.  The rate is expected to move down sharply due to the recession.  The central government has the goal of continuing the growth rate, it enjoyed until lat year.  Throughout the balance of the developing and developed the world it will be nearly impossible for the government to meet those goals.

    The cost of labor in India which was already below the US, it is likely to be falling even faster than it is in the US.  In India, the outsourcing business has been hit with a sharp drop in demand and the major Indian employers in the sector are doing poorly.  The India’s outsourcing giant WiPro was recently posted mediocare financial results.  While the labor prices drop in the US, they are probably dropping faster in the countries like India and China.  The India’s official unemployment rate is 8.2 percent although it is expected to rise throughout the balance of the year.  The IBM clearly arbitrage the joblessness in the US and India as it made its decision about where to emply the several thousand people. The IBM is looking for the equivalent of the lowest cost bidder.

    If the recession goes on for a long time, the IBM move may be a precedent for other US companies who need to staff essential positions. It could be easily take a hundreds of thousands of American people out of work and more jobs will be sent abroad.  Outsourcing is a trend nowadays, it has many benefits wherein people grab the benefits of outsourcing.

     

     

    REFERENCE:

    http://www.time.com/time/business/article/0,8599,1887779,00.html

    http://www.daylife.com/article/02276fqaIu2tU

    Leave a Reply

    You must be logged in to post a comment.