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Outsourcing - Spilling Beyond IT Industry

 
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I recently heard that the US is planning on ousourcing Wall Street's financial analaysts. So next time you watch Wall Street Week the guy telling you to buy XYZ stock maybe getting his info from e.g. India (sorry India - don't mean to pick on you.)
Then I heard that clinical trials will be outsourced to Eastern Europe.
The US is a service based industry. With a mass exodus of jobs already in the IT sector - where does that leave us?
 
mister krabs
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I just hope they don't get their financial analysis from Nigeria!
 
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There were some lovely graphs in FORTUNE magazine about a month ago. I don't recommend reading that issue if you have heart problems.
To be precise, a recent Boston newspaper article stated that Stock Market analyst jobs whose starting salaries run around $102,000 per annum were being shipped to New Delhi at $12,000 per annum. A full year before that, I knew that my own stock broker had been threatened. I suspect that the main reason SHE still has a job is because I'm one of a number of people who would react to her firing by transferring my assets (what's left of them) to an Internet-based broker.
The big irony is that we allowed our manufacturing jobs to go overseas because we're supposed to be a service and information economy and we don't need dirty, smelly dangerous jobs anymore. Except now the service jobs are headed there as well.
This is a situation than can only get worse until either the rest of the world gets so rich or we get so poor that there's no longer a cost advantge to offshoring - or, we become isolationists and cut outselves off. Which isn't likely to do us much good either.
I haven't an answer. I doubt a "pure" solution will work. My best idea is that we need to put enough sand in the gears to slow the process down enough to prevent catastrophe, but realize that it's not only right, but essential that the rest of the world should enjoy the same benefits that we do, and see what we can do to make that transition work in a non-disruptive way for all concerned.
Myself, I don't have the expertise or the influence to do anything. So I just keep making noise to remind people that we can't just sit back and hope for the best.
 
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Hi Nadine,
Every body nowadays control their expenses, why's can the corporations? Outsourcing is a sound tool for corporations trim down expenses and raise up stocks, effective or not time will tell.
I think any job that your body movement restricted in certain parameter, will be outsource. It reduces not only company fixed expenses also reduces medical related expenses.
My POV, US will be a talking heads country and the taxpayers mostly made up from sales people. As we known, sales have many levels. Joshua Bloch, Ken Arnold, James Gosling, David Holmes, and etc. are sales people just they do not carry the title. The other spectrum will be a blue collar jobs or any jobs that have not replace by machine yet.
Based on your resume and your articles published, I think you are sales person too. I look forward to read your new article.
Thanks,
MCao
P.S. I never though JavaScript is OO language, thank for point out the different view.
 
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Originally posted by Thomas Paul:
I just hope they don't get their financial analysis from Nigeria!


Please can you clarify what you mean by that statement, I am from Nigeria and I hope you are not trying to denigrate Nigeria.Despite the press you hear, there are lot of people capable of doing finacial analysis in Nigeria. All the big accounting firms have a major prescence in Nigeria so what do you mean? Is it because its an african country?
 
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I doubt companies will outsource it's entire operations : just enough to create partnerships to open up new markets , new products.
I hope not ! We'd be left with a vacuum and vacuums must be filled. With what ? New products for old markets.
I wish I hadn't said that. It sounds like "New lamps for old ".
 
Nadine McKenzie
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Most of the newer financial analysts (under 3 years of experience) on Wall Street have graduated from Ivy League schools or have attended 2nd tier universities with GPA's of 4.0. We are talking about the "creme de la creme". I know there's some serious talent abroad but have my reservations on their ability to make recommendations about which stocks to buy, how to structure a company, and so on.
I agree, that we need to put some sand in the wheels to slow down the process. Since the US is a service-based industry and all our service jobs are slowly evaporating, we (the country) will need some time to re-invent ourselves in order to survive the globalization push.
I just hope we are able to re-invent before the starting bell goes off.
 
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Originally posted by Thomas Paul:
I just hope they don't get their financial analysis from Nigeria!


Thomas,
I am not from Nigeria but I still don't like the tone of your statement. Any gentleman would clarify his point or apologize.
Nadine,
If you didn't want to pick on India, you would've have used "XYZ".
 
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Originally posted by San Tiruvan:

Thomas,
I am not from Nigeria but I still don't like the tone of your statement. Any gentleman would clarify his point or apologize.
Nadine,
If you didn't want to pick on India, you would've have used "XYZ".


One of the most famous recent financial scams came out of Nigeria.
 
shay Aluko
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Originally posted by herb slocomb:

One of the most famous recent financial scams came out of Nigeria.


and your point is?
 
frank davis
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Originally posted by shay Aluko:

and your point is?


My point was to speculate on a possible context in which Thomas Paul made his comment that offended some people. Although some may find it hard to believe, there may be countries with less regulatory standards in certain industries, such as the financial services industry, than in the US. There may also be some countries that do not have the same level of resources for a vigorous enforcement and investigation of financial irregularities. On a more personal note, knew a friend from Nigeria who seemed to know lots of people who were doing the infamous "send me money" scams via the internet. Maybe Thomas got an email this morning from one of them...
 
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With respect to the Nigeria comment, it was clear to me what Thomas was talking about; although I can understand how someone not familiar with it may find it offensive. (Note the smiley, he was trying to make a joke.)
For those not familiar with it, you can see a copy of the spam here. There are many variations of it. I receive 2-3 of those emails per week! Thomas probably just assumed everyone's gotten them by now and would get the reference. A similar comment might have been, "well I hope no one tries selling Neiman-Marcus cookie recipes over the web."
--Mark
 
Mark Herschberg
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Originally posted by Nadine McKenzie:
Most of the newer financial analysts (under 3 years of experience) on Wall Street have graduated from Ivy League schools or have attended 2nd tier universities with GPA's of 4.0. We are talking about the "creme de la creme". I know there's some serious talent abroad but have my reservations on their ability to make recommendations about which stocks to buy, how to structure a company, and so on.


Don't be so intimidated by these guys, its smoke and mirrors. I think we can agree that the US doesn't have any monopoly on bearing smart children. It may have an advantage with access to a higher education system for smart people.
  • Most Wall St firms simply hire msart people and teach them what they need to know. They happen to recruit from top tier schools because there are better odds of finding smart people.
  • Many hedge funds and quant based firms use a small handful of people in finance and quite a few developers who code up the models. (Some places, such as the one I'm interviewing with next week just use tech people for both sides.)
  • The models are either executed eletronically or executed by traders. The latter are simply trained monkeys who just execute the trades managers or computers tell them.


  • It turns out traders do like the social atmosphere of trading floors. Nonetheless, the trend is towards Electronic Communications Networks (ECNs), which are geographicly agnostic (save for poli-economic regulations).
    --Mark
     
    Tim Holloway
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    Pity we had to get distracted by a joke that backfired. The "Nigeria" issue wasn't a jab at Nigerian financial skills, but at the so-called "409" spam scam. Section 409 of the Nigerian penal code outlaws this behaviour, and since the prototypical form letter involves smuggling money (illegally) out of Nigeria, that's the name under which this diddle is best known. I got one the other day from Australia asking my help in smuggling gemstones out of Zimbabwe, and there are a number of parody versions including one from "George Bush" reuesting aid in smuggling oil money out of Iraq.
    Anyway, a stock broker, a trader, and a financial analyst all have different jobs. I haven't actually seen my broker for several years now. Her job's offshorable, but not if you want to keep my business.
    The floor traders are actually a bit of an anachronism, though they do provide lots of color. Technically, they're not offshorable, since they have to physically get together. Places where floor traders get together are called "Stock Exchanges", The U.S. has several, as does India. Most countries have at least one, though the Saddam-era Iraq one only met something like once a week.
    Financial analysts come on more flavors than I can count. Some are commodity grunts, some are stars. John Templeton was an extremely successful analyst and he actually credited a lot of his success to not being in the middle of the muddle. He lives in the Bahamas and his offices were (before he retired) in Florida. In a sense, he'd offshored himself.
    The positions in question here are back-room research analyst positions. It highlights one of the more subtle dangers of indiscriminate offshoring. Most professions have some sort of growth path or chain. If you offshore links in that chain, you may break it. There where do you expect to get your top-tier talent?
    Never mind. This is America we're talking about. You steal it from someone else.
     
    Mark Herschberg
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    Originally posted by Tim Holloway:

    The floor traders are actually a bit of an anachronism, though they do provide lots of color. Technically, they're not offshorable, since they have to physically get together. Places where floor traders get together are called "Stock Exchanges", The U.S. has several, as does India. Most countries have at least one, though the Saddam-era Iraq one only met something like once a week.


    Floor traders are a very small percentage of the financial industry. I'd estimate maybe 10,000-20,000 jobs in the whole US (including support staff). As ECNs become more prevalent (e.g. Island, Archipeligo, SOES), they will simply disappear altogether. If you're using a Nasdaq Level III Montage it really doesn't matter where you keep your terminal.
    --Mark
     
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    Originally posted by Mark Herschberg:
    With respect to the Nigeria comment, it was clear to me what Thomas was talking about; although I can understand how someone not familiar with it may find it offensive. (Note the smiley, he was trying to make a joke.)
    For those not familiar with it, you can see a copy of the spam here. There are many variations of it. I receive 2-3 of those emails per week! Thomas probably just assumed everyone's gotten them by now and would get the reference. A similar comment might have been, "well I hope no one tries selling Neiman-Marcus cookie recipes over the web."
    --Mark


    I was pompously notified once via hotmail that i am completely qualified for "GoldenMember" platinum visa card , actually right away after i went for Austin Powers and Golden Member movie, for which i waited impatiently for a long time (got a little dissapointed though). Just a comment.
     
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    http://australianit.news.com.au/articles/0,7204,6755927%5E16681%5E%5Enbv%5E,00.html
     
    Think of how dumb the average person is. Mathematically, half of them are EVEN DUMBER. Smart tiny ad:
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    https://coderanch.com/wiki/718759/books/Building-World-Backyard-Paul-Wheaton
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