May 13, 2002

GO EAST, YOUNG MAN :

Global Services Jobs Migrate to India Via Internet (Robin Elsham, May 12, 2002, Reuters)
For once, tech gurus may be guilty of underplaying how much the Internet will change your life.

Especially if you live in a moderate- to high-income country, are of modest to moderate intelligence, and work at a service industry job that can be done more cheaply -- and possibly better -- by some bright eager beaver in Bangalore.

Or Madras, Delhi, Bombay -- anywhere in India to which globally active banks, insurance companies, airlines or credit card companies shift their most labor-intensive operations.

The telecommunications revolution has made it possible for functions such as insurance claims processing, accounting, order taking or customer support to be done from anywhere.

The economics of global competition will ensure they are.

Tech researcher Gartner recently forecast that by December more than 80 percent of multinationals will use IT outsourcing to save money, overcome skills shortages or increase flexibility.

Without a doubt, much of that work is headed to India.

"Today India is the dominant player, with a greater than $6.2 billion (IT service) export industry, more than 900 software export firms and approximately 415,000 English-literate IT professionals," the report said.

Gartner Dataquest forecasts the market for this type of service, which the industry calls global business process outsourcing, (BPO), will grow to $543 billion in 2004, at a compound annual growth rate of 21 percent.


More evidence, if you still needed convincing, that our future lies with emerging nations like India, not with the dying nations of Europe. Posted by Orrin Judd at May 13, 2002 8:33 AM
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