Wednesday, March 4, 2009

Bookmark and Share

Halt in Global Trade and Unemployment

I was reading an article on H1-B visa oversight by United State government, this triggered an instant thought in my mind what would US be like...... crippled or strengthened by stopping the the whole H1-B visa regime, what would happen if US Senators  become successful in passing resolution to reduce or completely remove the H1B regime , luckily I have had a chance to not only observe the outsourcee side point of view but also studied the outsourcer's arguments too. 

Companies like Infosys TCS WIPRO are one of the most visible landmarks of the great Indian outsourcing saga, their business model is simple to deliver an end-to-end product to a global or local customer at a competitive market rate, this end-to-end product involves various steps,

1)project bidding based on  man hour rate calculations 
2)taking the project offshore and implementation 
3)second round of project analysis and
4) final deployment. 

I have may have missed a few but overall this is the basic skeleton of the business model .Now comes the question of H1-B ...where does it fit ?, not many people understand the importance of deployment  process which happens on site i.e. United States of America , this involves several engineers coming from India to United States on H1B visa simply because it happens that there is no other visa available for such a process, of course some may argue that there is a business B1/B2 visa but majority of these projects extend more than 3 months of deployment which is usual durations of such visas. So the outsourcer's argument holds. This is what few Senators in US should be educated on. No Sir.... Indians are not putting your people out of jobs rather making   " your " companies profitable

Today the notion of a truly American company has cease to exist, the rate at which the U.S. financial market exposed it tentacles to the global markets like Eastern Europe, Middle East and Asia, that it virtually bankrupted countries like Iceland completely where debts are $330,000  per  each man,woman and child. Companies like Boeing,CAT,Pepsi co,Coca Cola,Adidas Nike , McDonald's today are beefing their balance sheets merely by the increased profits in China,India and rest of East Asia.....question is .... are they really American companies any more ?, Chrysler and Ford, GM may close or fire people in Detroit but ask  about their sales in Asia and you'll have a rosy faces,   just ask Pepsi's CEO Indra Nooyi  who constantly visits the region to nurse the growing market. I am pretty sure Indian and Chinese are very net savvy activists who will argue that if H1-B's are cutoff due to the protectionist policies then so should Pepsi and Coke should be made to pay more taxes, resulting in a global trade tossed in air ,a complete confusion in global trade causing severe losses on both sides of the oceans, the U.S. 401 k's will shrink due to lesser bottom lines of their companies  and Ind/Chin will lose on standard and quality of living, there will be a transfer of huge trade from United States to Europe. This based on the fact that several European leaders rationally and rightfully disagree on Iron curtain protectionism last week. So everyone will go back to the 1980's, especially  in United States in terms where the stock values would fall, resulting in utter chaos and anarchy..... in Global Trade...

My suggestion is have PATIENCE till markets recover, as i write Dow Jones have risen today, by how much doesn't matter in this economy, but it has .............. 

Comments suggestions and corrections typo and colliding point of view are welcome..... 

No comments:

Post a Comment