Call centers won't go away - American Idol notwithstanding


My recent stories about American Idol inflamed reader passions from many perspectives. Sanjaya aside, the idea of American companies out-sourcing jobs to India or anywhere else offends many people. Some readers of American Idol: Are Indian call centers skewing the vote? thought I was singling out the people of India which they interpreted as hostile and racist. I thought I would set the record straight about my views on the subject.

  1. The jobs we are sending overseas to India, or elsewhere, is not affecting the employment rate in the United States to any appreciable level. Last I read the unemployment rate stood at 4.5%. It has been hovering between 4% and 5% for several years. To me that is actually close to full employment in a market society as complex as ours. I have no expectation that we could sustain anything lower.
  2. Our connection and developing relationship with India in particular is extremely valuable. I believe India has as much potential as any nation, and more than most, to help us expand our economy. It's size, value system, geographic location, history, English foundation, and more make it a great partner. There is much more to gain than to lose for both sides.
  3. The fluidity of markets and the greatest transparency in business dealings should be our focus and the word globalization is sometimes a distraction. It is not specific and means different things to different people. Integration is a better word. International partnering is a better term. Since the market is becoming more and more fluid we have not only witnessed call-centers and software development moving overseas, but in some cases they are coming back as companies experiment and decide they function better with local talent and control.

One of the greatest ironies I find in this whole discussion is that the people that complain about the outsourcing of work to other countries are the same ones that complain if a foreign company comes to set up shop in the United States - bringing jobs here!

Almost every foreign car company in the world has a design studio in Southern California. Most have set up North American operations and headquarters, if not manufacturing. This is true in the airline industry, software industry, heavy machinery, entertainment, you name it. So you can't have it both ways.
  • On a separate note many people thought that by raising the idea of Indian call-centers potentially swaying the American Idol results I was being racist. From my perspective based on demonstrated talent at the pre-twelve round, Sanjaya moving forward was bizarre, and I was stretching and found perhaps an equally bizarre rational. Nevertheless many uninformed readers commented that this is not possible, my research suggests it is and that can be found at the end of the original story, if anyone is interested. To those so sensitive to any discussion containing race or national origin, (or anything else) I apologize if I offended, it certainly was not my intention. That said, all topics should be open for discussion, I have no hidden agendas and appreciate any civilized comments or opportunities to grow.

Of equal importance in this discussion should be peace on earth. It is well-documented that the closer relationship two countries have economically the less likely they are to fight. From an environmental perspective we have no choice but to think globally because the air and water and weather keep ignoring our artificial man made boundaries. In conclusion we have everything to gain and little to lose and I take no issue with call-centers. We should make our entire focus quality of service and maintaining a level playing field. That is worthy of our concern and our effort.

Disclosure: I invest in international stocks, including ICICI Bank ADS (NYSE: IBN) one of India's largest private banks.

Sheldon Liber is the CEO of a small private investment company and the vice president for design and research at an architecture & planning firm. Check out his other posts for BloggingStocks here.

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Last updated: February 13, 2012: 05:28 AM

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