My theory on why the market is a little spooked

Can you imagine if all the Indians were let in to do financial analysis and IT work? Some of you IBM consultants and Goldman Sachs bankers out there would probably go back to $40k a year, if lucky. The free lancers will be out of work

There are already doing it. $250 for an iphone + android app with full database integration which would cost anything between 3-10K here.
 
Can you imagine if all the Indians were let in to do financial analysis and IT work? Some of you IBM consultants and Goldman Sachs bankers out there would probably go back to $40k a year, if lucky. The free lancers will be out of work

IBM has been trying to do this for several years now, for exactly the reason you described. The problem is that it isn't working for them. The client facing consultancy can't realistically be done remotely, and IT workers from other parts of the world don't understand the consulting 'trade' as it applies locally.

Given time, they will get on top of it. But right now customers are saying no.

The IT grunt work is being sent offshore, though, for commercial clients. Government security rules prevent this for most government clients.
 
That is a good point. If it is 4.5x now, it must have been 1x or 2x in the past. And it wasnt. it was always roughly 3x.

So;

Either they have changed the way they have calculated.

or; Its a load BS.

I'd say the latter is more likely.

These guys... omg. If the multiple of houshold income is now 4.5 then in the past it would have been even lower. So their point is moot.
 
How is it protectionism? All you need is the appropriate licence and you can be a tradesman and get in on the big money.

As for OS trades, well....every country has different building codes and if OS tradies want to work here they need to qualify for a licence so they can prove they can work to the very high building standards we have in Australia.

Well....thanks to the unions.....they make it really hard for overseas trained personell from getting recognition for their qualifications.

If we went the way of the UK where they get a lot of Eastern Europeans tradie wages here would fall.

As for tradies earning good wages....this only there result of protectionism.
 
There are already doing it. $250 for an iphone + android app with full database integration which would cost anything between 3-10K here.

that's okay if it's just some poxy game with basic advertising space.

build me a proper app with a database - remotely - and see what you come up with for $250.

the hassle of language barriers, travel, back and forth is worth the thousands of dollars extra.
 
I've seen the articles. What i havn't seen is evidence or proof or whatever of how they came to the x4.5 multiple.

Might just be that there is not enough recent data to justify either way, and people tend to bend the facts to suit....
 
that's okay if it's just some poxy game with basic advertising space.

build me a proper app with a database - remotely - and see what you come up with for $250.

the hassle of language barriers, travel, back and forth is worth the thousands of dollars extra.

it is a proper application etc.- iphone apps need to be verified by apple coz i got 1 done just for myself.
 
IBM has been trying to do this for several years now, for exactly the reason you described. The problem is that it isn't working for them. The client facing consultancy can't realistically be done remotely, and IT workers from other parts of the world don't understand the consulting 'trade' as it applies locally.

.

And where I work the OS punters are struggling to do skilled back office work, with the IT attrition rate being so high over in India. Its seems to be we train someone up for 6 months and then they leave. That and the "yes i understand" or the "i dont know whats wrong, can you do the needful and help please" or "im not sure ill have to check with my supervisor" that really closes the gap on the extra 9 times hourly rate charge out for Aussies
 
And where I work the OS punters are struggling to do skilled back office work, with the IT attrition rate being so high over in India. Its seems to be we train someone up for 6 months and then they leave. That and the "yes i understand" or the "i dont know whats wrong, can you do the needful and help please" or "im not sure ill have to check with my supervisor" that really closes the gap on the extra 9 times hourly rate charge out for Aussies

Another thing I noticed when I was still with IBM was the amount of time it took to get things done when using overseas resources. We used Chinese, Indian, Philippines, Indonesian, and Malaysian resources regularly, and while they were good at following very simple processes, the second you needed something doen that was even slightly out of the ordinary, the whole process just fell apart.

IBM are currently trying outsource detailed infrastructure design work to India. At the moment it isn't working, but in time the results will improve. The problem that is now being identified is that India has higher inflation than Australia, and when this is added to the additional time required to complete design tasks, sending work to India only works in the cost models used for another 5-8 years. After that, the cost models say it's cheaper to bring it back to Australia.

Of course, the cost models will have to evolve, but long term planning is highly problematic. Despite this, they are still pushing full steam ahead and are dumping lots of Australian staff. Morale is so bad that lots of other staff are leaving too.
 
No company is going to want financial analysis from some random guy in India. It just won't happen.

One of the world's best financial analysts is Indian and works for the IMF. Citibank, one of the world's largest bank is run by an Indian.

Bit racist?

There is a difference between hiring cheap indian outsource support and high quality experts that are much more affordable than onshore staff. People may have had bad experiences by hiring dirt cheap labor and then complain results were bad. (Duh!) Try paying someone peanuts in Australia and see if you ever get decent long term results.
 
OMG you played the racism card ! That is cute.

I didn't say Indians couldn't do the work. I said companies are not going to send their accounting or financial analysis work over to India.
 
One of the world's best financial analysts is Indian and works for the IMF. Citibank, one of the world's largest bank is run by an Indian.

Bit racist?

There is a difference between hiring cheap indian outsource support and high quality experts that are much more affordable than onshore staff. People may have had bad experiences by hiring dirt cheap labor and then complain results were bad. (Duh!) Try paying someone peanuts in Australia and see if you ever get decent long term results.

Hahaha nice shot douche. No one here is bagging folks of Indian descent, but having whinge about the language and processional barriers of utilising offshore staff.

Your last line sums up the argument entirely.

Douche....:rolleyes:
 
One of the world's best financial analysts is Indian and works for the IMF. Citibank, one of the world's largest bank is run by an Indian.

Bit racist?

There is a difference between hiring cheap indian outsource support and high quality experts that are much more affordable than onshore staff. People may have had bad experiences by hiring dirt cheap labor and then complain results were bad. (Duh!) Try paying someone peanuts in Australia and see if you ever get decent long term results.

Can't make a point without being politically incorrect... obviously talking generally about outsourcing to India.

It's like saying people in China and Russia are still poor - but actually there're more millionaires combined than USA and Japan combined.
 
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