09-26-2004, 07:38 AM
<!--QuoteBegin-Viren+Feb 10 2004, 05:01 AM-->QUOTE(Viren @ Feb 10 2004, 05:01 AM)<!--QuoteEBegin-->Rajesh: I had posted a response by a good friend to a columnist yesterday in IT thread. Link here
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OUTSOURCING - DON'T WORRY
BPO is driven by economics and not by politics. The backlash against it, however, is driven by ignorance. The average American can't tell the difference between India and Botswana or Niger, say, and often thinks of India as an Arab country populated by sheiks and their harems and millions of poor people. These people are naturally shocked and alarmed that INDIA! is taking jobs away.
The backlash is not against outsourcing - which has been going on for over a century - the backlash is against India. BUT - the companies who send jobs to India ARE aware of the real India and of its capabilities. Therefore, they want to continue doing business in India. As more and more companies lear about the quality and cost advantages of India, BPO will become unstoppable.
Regarding India's lead vs. China, history shows that once you develop a strong lead over your rivals in business, your lead tends to become wider. This is because growth is exponential - you grow faster as you become bigger. Therefore China will follow India, but it can never catch up.
Regarding the political hue and cry about outsourcing in the US, remember that the government plays a very very small role in the US economy outside defence, where outsourcing is already banned. The politicians know this - they use the outsourcing issue to get votes (it's emotionally charged) but they also know that their actions will not significantly hurt US business or consumers.
The bottom line, India needs to focus on IT education, quality, infratsructure, business development and industry organization, and just march ahead wthout hesitation. The Indian goverment should learn from Japan and South Korea in this regard - where the government was a very well organized and highly effective cheerleader for business, always aligned with business interests.
<!--QuoteEnd--><!--QuoteEEnd-->
OUTSOURCING - DON'T WORRY
BPO is driven by economics and not by politics. The backlash against it, however, is driven by ignorance. The average American can't tell the difference between India and Botswana or Niger, say, and often thinks of India as an Arab country populated by sheiks and their harems and millions of poor people. These people are naturally shocked and alarmed that INDIA! is taking jobs away.
The backlash is not against outsourcing - which has been going on for over a century - the backlash is against India. BUT - the companies who send jobs to India ARE aware of the real India and of its capabilities. Therefore, they want to continue doing business in India. As more and more companies lear about the quality and cost advantages of India, BPO will become unstoppable.
Regarding India's lead vs. China, history shows that once you develop a strong lead over your rivals in business, your lead tends to become wider. This is because growth is exponential - you grow faster as you become bigger. Therefore China will follow India, but it can never catch up.
Regarding the political hue and cry about outsourcing in the US, remember that the government plays a very very small role in the US economy outside defence, where outsourcing is already banned. The politicians know this - they use the outsourcing issue to get votes (it's emotionally charged) but they also know that their actions will not significantly hurt US business or consumers.
The bottom line, India needs to focus on IT education, quality, infratsructure, business development and industry organization, and just march ahead wthout hesitation. The Indian goverment should learn from Japan and South Korea in this regard - where the government was a very well organized and highly effective cheerleader for business, always aligned with business interests.