Indian BPOs scale Wall Street (MBA's PhD's jobs next to go)

[RamboLiberal]

http://economictimes.indiatimes.com/articleshow/337946.cms

Offshoring the Wall Street analyst's job could add the required glitter to a much stereotyped Indian BPO industry.

Contrary to common belief that business process outsourcing (BPO) means only answering calls and processing transactions of global customers, India's BPOs are now setting their sights on high-end area like equity research, report writing and analytics as part of lucrative knowledge services.

As the $2.3-billion BPO industry here matures, they are increasingly hiring professionals like CAs, MBAs and PhDs in economics and statistics for such service at a starting annual salary of Rs 4 lakh as opposed to Rs 1.5 lakh for a call agent. The industry pitch is that thousands of CAs and MBAs based in India can be engaged in tweaking balance-sheets and number-crunching for a fraction of the cost abroad, which can deliver cost savings up to 60 per cent for the banks. As per estimates, a junior analyst in the US is paid between $80,000-1,00,000 per annum, while it will be 20 per cent of that cost in India with the same quality level.

Equity research offshoring is happening at a rapid pace as global investment banks are under pressure to pare costs after the three-year slump in the industry.

[htuttle]

1. Oh....now THERE's a bit of schadenfreude for ya....

Now that our factories are long, long gone, and how former IT industry running a remote control operation overseas, it's so nice to see that many of the analysts who thought it would be a good idea to outsource all that will become outsourced themselves.

[hatrack]

2. How, then, will the WSJ editorial board respond . . .

if they're soon confronted with the irresistable logic of the global economy vaccuuming up American financial sector jobs. That should be interesting to watch.

Oh, but I forgot, the WSJ editorial board have Platinum Plus Preferred Citizenship, and will be largely unaffected. Silly me!

[tnvision]

3. What's that poem about saying nothing?

I am an MBA. When they shipped the textile jobs overseas I said nothing.

(Wait, it gets better)

When the customer service jobs were shipped overseas I said nothing.

(Wait, it gets better)

When the manufacturing jobs went overseas I said nothing.

(Wait, it gets better)

When the technology jobs went overseas I said nothing.

(Wait, it gets better)

Now thw MBA jobs are going overseas and no one can speak up for me.

Anyone remember this poem?

FYI

When the MBAs go overseas All I'm sayin' is

IT DOESN'T GET ANY BETTER THAN THIS!!!

[The_Casual_Observer]

4. India should be forced to create their own wealth

The only reason that this is happening is because the standard of living in India is so poor. If indeed there are so many smart people in India, they ought to be working towards improving India, instead of focusing on stealing US jobs in order to make a very few people rich at the expense of some underpaid indians and unemployed american workers.

[Lorien]

5. Overpopulation and a caste system

makes that tough. They simply don't have the resources and inferstucture over there. All their "smart people" go abroad to colleges, then come home with American jobs.I certainly don't blame the Indians for trying to better their lives, I blame the American companies who wave the flag while getting government handouts and shipping our jobs overseas.

[54anickel]

7. The aren't "stealing" anything. The world's resources are being

exploited (human and natural resources). That comes with free but not necessarily fair trade. It just brings to mind the old saying, "careful what you wish for". Free trade seems like a great idea, give the well to do nations cheap "stuff", but at what long term social and economic expense to the world?

[Zero Gravitas]

10. Its not India's fault

The Indians aren't "stealing" American jobs, its American Corporations that are selling out the American Middle Class for short term profits. Don't worry the Indians will soon wake up to the fact that they have all the parts of many American companies that actually do the useful work and will realise that they don't need some ego maniac American CEO and his boot lickers flying around in private jets to make the comapny work. They'll just transfer all that expertese to an Indian company and put the Americans out of business.

[NashVegas]

14. And They Want Us To Move SS to Wall Street

That way, we'll all be complacent stock holders who only look at the bottom line, while human rights' abuses are committed abroad.

[Bhaisahab]

24. IMO we're doing nothing wrong...

....globalization is not about the third world opening markets to western companies who wipe out local firms. the west started this crap called free market and free labor, not us. you gotta reap what you sow, no?

[kcwayne]

6. I have read the Wallstreet plans on moving 500,000 jobs overseas

I don't have a link, I read this about 6 months ago.

When the kids at Harvard and Yale come out of college and have to hang out at the Hamptons driving their parents nuts because they can't find work, and Daddy doesn't want to fork over 200K per year to keep Bif and Buffy set up in their New York apartments, it might finally dawn on the aristrocracy of this country that even they can be affected by the selling out of America.

[RamboLiberal]

8. Here's - they're shipping 500,000 or 8 percent of jobs

US banks, brokerages, mutual companies and other financial services companies are planning to relocate 500,000 jobs offshore, or 8 per cent of their work force, over the next five years.

http://www.rediff.com/money/2003/may/02jobs.htm

[SoCalDem]

9. The Indian government was smarter..

They saw that education would be the way to bring wealth to their country.. Their people are taught English, they take the "hard" subjects, and they excel... Our education system is not promoting "big" education.. We are limping along on the "old way"..and higher education is getting harder and harder to afford..

If we were serious about keeping good jobs here, we would have been prepapring our kids better and making college EASIER, not harder to get into..

We like doing things on the cheap, and now it's almost too late to change it.. ...

It will take a lot of money(which we don't have anymore) and it will take some real pressure to teach the kids the tough stuff.. like math and science..

[bleedingheart]

11. Hey now don't be so hard on the American education system

I work in engineering and have been working with Indians educated overseas and I find they are no smarter or dumber than americans and some are trained to tasks. A recent project put me in contact with an Indian who held a PhD in engineering and this individual had no critical thinking or analysis skills. I only have a BS in engineering and was being asked by this woman to do her job...so is this a reflection on American versus Indian education systems? I hate to see people paint our education system with such a broad brush and just cast us as a bunch of poorly educated idiots...

To be fair I don't think any ethnic or racial group is smarter than the other, I think it just boils down to dollars and cents. I have seen companies hire stupid people of any background just because they work cheaper...it doesn't mean they are better...it just makes the balance sheets look good.

[The_Casual_Observer]

16. It has nothing to do with the quality of education

The US has the best higher education system in the world. It has everything to do with the standard of living in India. These people can live nicely on 20% of what we make here.

Just how long did anyone think that corporations were going to continue to pay US programmers 120-130k a year to write code anyway?
It was an unnatural situation that was bound to change.

[aquart]

20. When CEOs make 40 million before the bonus

What the hell is unnatural about 120,000 for actual work?

[The_Casual_Observer]

22. Nothing is wrong with it, except

The 120K guy serves at the pleasure of the 40 mill guys. The 40 mill guys get paid to figure out how to eliminate the 120k guys, so they can increase it to 50 mill.

The 40 mill guys have no concept of the value of the people who do the work, only that is costing them too much and could probably be done cheaper elsewhere. I don't think that any consideration is given to the larger implications of what this means when "everbody" outsources, as I don't think that they are concerned about anyone else's problems, only this quarters profit.

[SoCalDem]

17. I am not saying they are smarter.. Just that education is more valued

there and the government bends over backwards to see that lots of kids there have a higher education.. I am sure that there are lots who do not even get to go to school, but the ones who do, seem to be taking difficult courses.. I know for a fact, that our school system does not seem to have the "push" anymore.. :(

It was not that way when I went to school, but I see more and more classes that used to be required, and now they are not even offered.:(

[bleedingheart]

18. Part of the problem in our current system is that some schools in

this country are being asked by "industry" to develop programs that train to tasks which is a practice I find horrible. I think that we need to make sure that kids are given good educational foundations.

[SoCalDem]

19. That..and so many schools waste most of their time teaching to a test

and then wonder why the kids are not learning much :(

[Fovea]

21. It is not about the quality of our education system

But it is about the amount of importance we place on education.
And it is CERTAINLY about how available education is to American students.

We have punished education continuously since the sixties, and now we cannot compete in the information economy we created. And so I agree that punishing the Indians is both absurd, AND insulting. I am not at all adverse to a protectionist policy re jobs. I think the chimera of free trade has pretty much wiped us out if we do not act now.

Will George Bush address this issue. Well, let's see... is their anybody who wants to privatize education?

[bleedingheart]

12. hahahahahahahahaha

this is to laugh....

Oh it is so funny...the same analysts who told the Corporate Borg that it was better to outsource...ahahahahahahah

Oh my...I am going to have to calm down...hahahahahahaha

[TheDalaiMama]

15. Poetic justice.....

dalai

[JCMach1]

13. American Companies are killing themselves with this...

One interesting thing I have found living in the UAE is just how repected AMERICAN-made products are... We are killing our homegrown industries because we demand things on the cheap (read Walmart). Companies will eventually destroy this imression that people have by removing themselves to foreign countries.

American companies are shooting themselves in the foot.

India is many countries... one of them is a place with growing wealth, good education and around 300million English speakers.

[Jane Eyre]

23. It is happening already

I saw this on CNBC one morning. They cited two companies which were using Indian analysts. I believe one of the companies was JP Morgan.

[leftofthedial]

25. well I know one MBA whose job is about to go

to a Democrat.

Actually, we should bring back all the lost jobs EXCEPT MBA's. Those we SHOULD banish.