Outsourcing crisis

[OhioChick]

Amidst fears of a deep and prolonged recession in the west and associated rise in unemployment, the risk of some of the outsourced jobs in financial
services and IT returning home to the US, UK and other parts of Europe is only to be expected.

Financial services companies, particularly banks, which got a fresh lease of life thanks to state intervention — direct infusion of capital or otherwise — could be pressured by their governments to bring back jobs outsourced to countries such as India.

After all, these governments need to justify using taxpayers’ money for rescue packages and need to be seen containing the damage to the real economy. India’s IT companies that were sanguine about the business outlook for the near term would need to reassess the situation given that foreign companies plan to cut IT budgets for 2009.

Reports suggest about 5-10% cut in IT spend by companies in the US and UK, with sharper cuts in the banking, financial services and insurance (BFSI) sector.

Recapitalised banks are talking of a freeze on IT spending for the next year. Such developments do not augur well for Indian IT firms that earn up to 42-45% of their revenues from this sector.

More: http://economictimes.indiatimes.com/Opinion/Outsourcing_crisis/articleshow/3693225.cms

[Joe Chi Minh]

1. Oh no! Don't tell us times are so bad, unemployed workers in the West are going to be given

back jobs that had been outsourced abroad! Why that's just stirring our cup of bitterness with the sword of Damocles.

[Azlady]

2. Could be pressured...

Any bank, any Company receiving bail out money should be required to bring those jobs home!

[sledgehammer]

3. Agreed

If the govt is "bailing out" any company, there have got to be some conditions. A commitment to bringing back / creating new American jobs is a minimum. Whether it's wall street, AIG, auto industry, whatever.

I still can't believe we are paying for their bonuses and their retreats. I hope things will change drastically on Jan 20th.

[Skittles]

4. pimping off jobs to the lowest bidder has lowered quality

I see it every fucking night at work

[OhioChick]

5. Sure has.

You get what you pay for.

[Skittles]

6. hilarious when they ask why SEV 1's have increased so much

H E L L O !!!!!!!!!!!!!!!

[OhioChick]

7. Ummm.....

What's a loop? :rofl: