US Economy slowing down

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Ok, so i came across these pretty good articles and i would concur on few of their findings. Considering that another round of recession can set in by end of 2007, what would the class of 2009 do? CNN.com - Boom or bust? The global econo...
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I think India and China is sucking blood out of US and it will not last. India is redefining how services are delivered in global operating model and china is revolutionising manufacturing by producing products at massive scale lowering operating cost.

I have worked in BPO sector before and right now making a transition from BPO to KPO by doing knowledge based academic work in the field of financial research. However, sometimes i feel guilty of doing someone else job. The flat world as Nandan of Infosys says is a simple process and concept where we are transitioning high labour processes to cheaper cost effective locations. Raju, CEO of Satyam said few weeks ago that one IT job created in India generates an additional 3 more indirect job. My thinking is: One IT job offshored from US will destroy 3 additional indirect jobs (in US) in the same way.

I remember reading an article where TCS sended a project manager to transition process in Mumbai. When project manager went to US, he learned that IT department is laying off 45 people and sending 45 jobs to Mumbai. Apart from loosing core job, someone will loose his home, someone will have to part away with his car, someone will stop sending his kids to school etc.

3.3 million jobs will be offshored from US by 2015 as per neoIT reports. The total labour workforce in US is 130 million. So, almost 3% of workforce in US will be offshored. My main cause of worry is the same as my thinking. 3.3 million will loose jobs directly, how many people will be affected indirectly? If 1 job cut affects 3 indirect jobs, then close to about 13-14 million people will be affected out of total population of 300 million. The flat world will affect about 4-5% of US population and there will be tremors in the form of newspaper articles, personal stories felt across the nation.

World is an imperfect place. India needs army of transition managers, project managers and operational experts to carry mass migration of low and high end service processess to India disrupting exisiting community and social harmony and creating an anxious and volatile life for the displaced worker. IBM global services plans to have 100000 professionals in India by 2010- 30% of IBM global workforce will be in India by 2010.

I am proud what infy, wipro and TCS are doing. Infosys invented the global delivery services model and it is a business disruption model. Finally, India is making impressive mark in IT services derisking India delivery model by capturing other low cost locations and becoming global corporations. But, at the same time sometimes i feel guilty and think about poor americans who are paying price of internet invention-Flat World.

Offshoring will not help American economy. I dont know whether recession will hit US or not but offshoring coupled with huge spending in Iraq war sounds negative. Middle class in US is getting serverly affected due to service offshoring hitting the most important part of US economy- Consumption Demand.

Lets pray for peace and united flat world.

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Read an article in the Economist talking about the symptoms and possible causes of US Economic showdown. The link is:
http://www.economist.com/finance/displaystory.cfm?story_id=8829592

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I partially agree with the woes attached to US economy slowing down..Though I have to agree that everyone is going to be affected by the slow down, it is the extent of effect thats important and debatable. I see that the growth of a huge customer base in emerging economies is going to offset the decline in spending by US consumers..Of course..it does not mean that businesses are going to get effected..I found an interesting article on this at TIME.

The Global Question: Who Needs the U.S.? -- Friday, Jan. 19, 2007 -- Page 1 -- TIME

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Talking about MicroFinance reminds me of Vikram Akula (CEO and Founder of SKS MicroFinance). He has been awarded as the Social Entrepreneur of the Year. Some days ago, I was watching a show on CNBC-TV18 which was about Stanford students interacting with some eminent Indian industry personnel. He was one among the persons representing Indian industry. Standford guys were very keen on interacting with him and knowing abt his venture. At the end of the show, when Shireen asked how many of u(standford guys) are interested in MicroFinance (social entrepreneurship) many ppl raised their hands. It is also interesting that when the same question of interest in IT was asked, no one raised a hand.
This also reminds of another incident - Very recently an XLRI GMP guy was picked up by ABN AMRO to head its ABN AMRO foundation (CSR wing)
Business Tech News Wire XLRI GMP MBA student appointed as CEO of ABN AMRO Foundation

I guess, more and more people and corporates are getting interested into social enterpreneurship now. Good times ahead for India I hope.


yes, that is happening companies are relaizing the pwer of the same. And young people like me are join gthe sector beacuse it is getting more professinal and you leave an impact on lives.
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iday Says
On a related note - the union govt is coming up with a "Micro Credit policy" sometime soon. I know PY would be interested, and u seem to be interested as well. So both u guys - keep a tab on it :)

I'm a wannabe IT entrepreneur but my interest in Micro Credit is due to the fact that my mother is head of Women Development Cell of JCC Bank and she does a lot of work on Self Help Groups (SHGs). A very interesting fact is that the defaulters among the SHGs are less than 5%, which is very less as compared to general rate of default. So not only does Micro Credit help poor people, it's a very profitable venture too
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Hi Purple Yogi
I think ur idea of social entrepreneurship is fab and it wud not be a difficult task to convince VCs etc for funding after ur degree with Oxford. The Micro credit sector in India is a rapidly expanding sector and many big players like ICICI bank, Grameen Bank are entering it. If u have strong conviction of ur ideas the world is your oyster!


Talking about MicroFinance reminds me of Vikram Akula (CEO and Founder of SKS MicroFinance). He has been awarded as the Social Entrepreneur of the Year. Some days ago, I was watching a show on CNBC-TV18 which was about Stanford students interacting with some eminent Indian industry personnel. He was one among the persons representing Indian industry. Standford guys were very keen on interacting with him and knowing abt his venture. At the end of the show, when Shireen asked how many of u(standford guys) are interested in MicroFinance (social entrepreneurship) many ppl raised their hands. It is also interesting that when the same question of interest in IT was asked, no one raised a hand.
This also reminds of another incident - Very recently an XLRI GMP guy was picked up by ABN AMRO to head its ABN AMRO foundation (CSR wing)
Business Tech News Wire XLRI GMP MBA student appointed as CEO of ABN AMRO Foundation

I guess, more and more people and corporates are getting interested into social enterpreneurship now. Good times ahead for India I hope.
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Hi Purple Yogi
I think ur idea of social entrepreneurship is fab and it wud not be a difficult task to convince VCs etc for funding after ur degree with Oxford. The Micro credit sector in India is a rapidly expanding sector and many big players like ICICI bank, Grameen Bank are entering it. If u have strong conviction of ur ideas the world is your oyster!

On a related note - the union govt is coming up with a "Micro Credit policy" sometime soon. I know PY would be interested, and u seem to be interested as well. So both u guys - keep a tab on it 😃
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Hi Purple Yogi

I think ur idea of social entrepreneurship is fab and it wud not be a difficult task to convince VCs etc for funding after ur degree with Oxford. The Micro credit sector in India is a rapidly expanding sector and many big players like ICICI bank, Grameen Bank are entering it. If u have strong conviction of ur ideas the world is your oyster!
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I would have couple of directions/approaches for you on this (as I have beaten the same path in my life once:)
1) Funding for your company/entrepreneurship: If you want to succeed in your venture you will need money. For even a small scale firm, you will need few 100k of dollars (200K or 300K or more). You cannot go very far with couple of 10K dollars. You can get this money one or two ways - savings from your family income (think how many years you have work and save if you want 100K savings) or loan/investment from outside (banks, VCs or Angel capatilists). I have tried talking to investors to fund into one of my projects, but then they would want to see my resume (and it does not have any business skills..I mean no MBA..Haha). I approached banks, but they wud want a big collaleteral. I searched my pockets (and even my friends' pockets), and found only few 10K. As I said, 10K wud not do much to re-fill your pocket, except that your interest and money start waning gradually..

Oxford is that brand that can easily get you money from investors. Propose your ideas to them, and get them interested. There are gaBillions of people who have gaZillions of dollars and do not know how to invest them. Make your ideas sell and get money for your project. Its not all that easy, but the easiest of all 3 choices that I talked. I am telling you, school is the best place for this. Investors know that students like you can take risks and have all the time in world to put at work.. so I wud say, you have the best opportunity in life.. take it,..

2) Time: As you go further in life you will loose your extra time to family and friends. Its quite natural (and in fact needed) that you allocate time for family matters and can only spend 40% 0r 50% of a day for your company-related activities. So, time for making a decide what your life wud be after marriage and what kind a spouse u wud want (I mean working at a comp, working for your comp, homemaker, etc).

You are still young and energetic, so take that risk. You may feed at the expense of your spose, but hey... you can be a new youTube, or google, or reliance or at least a millionaire.. I am only trying to encourage you, as I clearly understand what I could have done few years ago when I was in the same situation...


thanks i am taking it up thats for sure. i agree with you on the name part though it does matter. i have taken risks before so one more to it. My case may different as i would raise money for soical ventures, and Social Return on Investment is hard to get by than ROI for investors, but oxford will help foir sure.

Rock on .....

PY
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I would have couple of directions/approaches for you on this (as I have beaten the same path in my life once:)
1) Funding for your company/entrepreneurship: If you want to succeed in your venture you will need money. For even a small scale firm, you will need few 100k of dollars (200K or 300K or more). You cannot go very far with couple of 10K dollars. You can get this money one or two ways - savings from your family income (think how many years you have work and save if you want 100K savings) or loan/investment from outside (banks, VCs or Angel capatilists). I have tried talking to investors to fund into one of my projects, but then they would want to see my resume (and it does not have any business skills..I mean no MBA..Haha). I approached banks, but they wud want a big collaleteral. I searched my pockets (and even my friends' pockets), and found only few 10K. As I said, 10K wud not do much to re-fill your pocket, except that your interest and money start waning gradually..

Oxford is that brand that can easily get you money from investors. Propose your ideas to them, and get them interested. There are gaBillions of people who have gaZillions of dollars and do not know how to invest them. Make your ideas sell and get money for your project. Its not all that easy, but the easiest of all 3 choices that I talked. I am telling you, school is the best place for this. Investors know that students like you can take risks and have all the time in world to put at work.. so I wud say, you have the best opportunity in life.. take it,..

2) Time: As you go further in life you will loose your extra time to family and friends. Its quite natural (and in fact needed) that you allocate time for family matters and can only spend 40% 0r 50% of a day for your company-related activities. So, time for making a decide what your life wud be after marriage and what kind a spouse u wud want (I mean working at a comp, working for your comp, homemaker, etc).

You are still young and energetic, so take that risk. You may feed at the expense of your spose, but hey... you can be a new youTube, or google, or reliance or at least a millionaire.. I am only trying to encourage you, as I clearly understand what I could have done few years ago when I was in the same situation...


thanks i am taking it up thats for sure. i agree with you on the name part though it does matter. i have taken risks before so one more to it. My case may different as i would raise money for soical ventures, and Social Return on Investment is hard to get by than ROI for investors, but oxford will help foir sure.

Rock on .....

PY
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