Outsourcing has impacts on India

By: EDGAR TOWERS - Commentary: | Wednesday, November 22, 2006 8:39 PM PST

When we call for telephone support we speak with very cordial people who thank you for every statement you make. These people are generally very young and primarily live in India. They call themselves "Mary," "Susan," "John" and other Western names.

The social impact on India, although at first seen as an economic miracle, is now tearing away at the Indian social and moral structure. These kids make $300 more a month than a physician who went to school for seven years. These kids, who cannot make as much money in any other field, have now become the primary support for their families and significant integrators of the 300 million-member Indian middle class. During the day, their light hours, besides resting and enjoying a social life, they are obligated to watch U.S. cable news, read Internet news and commentary so that they may share sports events as "John" speaks with a real John in the United States. The all-night work and social gathering has caused a greater promiscuity among the young Indians, but their families and parents rely on this income and are forced to ignore the spiral.

The 5 million young men and women who took over the equivalent number of U.S. jobs are paid $500 per month. To begin with, they attend a three-month accent learning school and learn the various accents within the U.S. They work all night long because of the time difference, making or receiving an average of 268 calls per night. The call centers have both ingoing and outgoing calls. So if you call for help on just about anything, you reach "Mary," "Susan," "John" or one of the many others. Working with a U.S. company's approval, they perform outgoing telemarketing functions and call you to sell mortgages, insurance and other business, even though you are on the "no call list." They are not violating Indian laws. Contrary to their cultural practices, they are screamed at and sworn at all night long by the real Johns who reject their telemarketing calls.

The social detrimental impact on the U.S. is the loss of the 5 million jobs and future related functions and technologies in this business sector alone. Since more than 80 percent of U.S. companies have 20 or fewer employees, outsourcing lower jobs has a greater impact on our society and it is a shortsighted, if not fully stupid, lack of concern and planning by our government.

But now even the Indians are being outsourced as Eastern Europe becomes the next outsource call centers.

-- Oceanside resident Edgar Towers has worked in international business for more than 25 years, including ventures in Europe and India.

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Check your premises wrote on Nov 23, 2006 9:09 AM:The only thing I find “shortsighted, if not fully stupid”, in Edgar Towers commentary is Mr. Towers’ conclusion. There is nothing good to be said about the economic nationalism Mr. Towers seems to favor. It begins with the idea that the boundaries of economies coincide with the boundaries of nations. But this never happens in the absence of compulsion. When left alone (free), people naturally buy and sell to best advantage oblivious to political lines. Early on they figure out the benefits of specialization and comparative advantage, which as if by magic leads to the production of more useful stuff. It is only when the ideology of nationalism ... often a cover for special labor and industrial interests ... is permitted to muddy clear economic thinking that common sense is tossed to the wind and obvious truths are traded for rank fallacies.. . . As professors Solomon Polachek and Carlos Seiglie have concluded: "The overwhelming evidence indicates that trade reduces conflict. Likewise for foreign investment. The greater the amounts that foreigners invest in the United States, or the more that Americans invest abroad, the lower is the likelihood of war between America and those countries with which it has investment relationships.” As far back as 1748, Baron de Montesquieu observed that "Peace is the natural effect of trade. Two nations who differ with each other become reciprocally dependent; for if one has an interest in buying, the other has an interest in selling; and thus their union is founded on their mutual necessities."

True American Companies wrote on Nov 23, 2006 6:45 PM:As the head of American Companies sport the USA flag on their lapels, they are doing a diservice to all workers in the USA by outsourcing jobs. How American is that? I do not like having my call handled by someone who doesn't understand my question. These American companies are hurting us and those in India. Bring the jobs back to America.

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