Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : India Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (424)	3/16/2004 4:37:19 PM
From: Sam Citron	Read Replies (1) \| Respond to of 2517

'Offshoring' Can Generate Jobs in the U.S. By CRAIG KARMIN Staff Reporter of THE WALL STREET JOURNAL [Excerpt:] Global giants aren't the only companies cutting costs by shifting jobs overseas. Increasingly, small businesses are finding that "offshoring" jobs is a boon to their bottom line -- and sometimes gives them room to create new jobs at home. For example, when Rajeev Thadani wanted to expand Claimpower Inc., his medical-billing service in Fairlawn, N.J., he chose to outsource some of the work to India. But unlike most companies going this route, his business had just five other employees at the time. Mr. Thadani, who runs the company with his wife, flew to his native Bombay in 2001 and hired four locals to help file insurance claims on behalf of New Jersey doctors. They use a software system that Mr. Thadani, a programmer by trade, developed specifically for the task. Today, he employs 35 people there. Since he pays his Indian employees the equivalent of $133 to $663 a month -- quite good by local standards -- he can charge doctors less than his competitors and has more time to offer specialized attention. That has given his business a big lift: In a little more than two years, he says, his client list has soared to 41 doctors from 10, and his firm's annual revenue jumped to $700,000 from $100,000. Now he's taking steps to expand his business nationally, while planning to add staff in the U.S. In the past, Mr. Thadani relied on referrals from existing customers to get new business. He will soon add a sales team for recruiting clients and hire new managers in the U.S. to work with doctors. Longer term, he hopes to add as many as a dozen U.S. employees, plus 30 or so additional people in India, to help him reach his goal of handling claims for 500 doctors nationwide. At a time when the U.S. has lost 2.3 million jobs over the past three years, foreign outsourcing -- to India in particular -- is frequently blamed for the jobless economic recovery. But recent employment trends suggest the moves also can trigger the creation of new U.S. jobs... Continued at online.wsj.com

To: Sam Citron who wrote (424)	3/16/2004 10:01:53 PM
From: Jurgis Bekepuris	Respond to of 2517

Cary seems to look at things only through American POW. It was fine while US brain drained other countries. It became a problem when other countries started keeping their brains and jobs. It is fine when US is protectionist (let's remember how US agro subsidies are already killing most of the world's agriculture). It is bad when other countries go the same way (hmm, maybe think OPEC). It is great when US prohibits offshoring... as you already mentioned, it will be bad when other countries exploit this or retaliate. Oh well. Jurgis - one of the brain drained

To: Sam Citron who wrote (424)	3/16/2004 10:58:43 PM
From: Cary Salsberg	Respond to of 2517

Sam, The issue of practicality is very difficult. It is easier to let the market do it, but we are experiencing severe unintended consequences and other nations don't seem to be as free. 1. You are correct, our companies must be competitive, but all companies, domestic and foreign, must face adjustments when they attempt to sell product not made here into our markets. 2. The potential that everyone loses does not seem as dire when we are already losing, badly. 3. Bingo! American consumers in effect subsidizing American labor, themselves. What a radical notion! Do you remember history lessons in which the fall of some empire is "explained"? Well, continued adherence to free trade will be given as the explanation for the failure of the American experience.