Category Archives: Of Interest

Mastering the cultural code; how to handle intercultural employment & work

September 28, 2014 by 123outsource
Categories: Of Interest | Tagged , , | Leave a comment

I hate working with people from other cultures!
I sometimes travel from country to country and work with people from other cultures. I love other cultures, but I don’t like working with people from other cultures. I also don’t like working with Americans. I feel that all cultures are badly configured for getting work done. The Japanese and Germans are much better about their work ethic, but there are difficulties with them too.

Cultural differences are more than just food.
If you work with people form other cultures you will notice many things if you are paying attention. You will observe that some people are very detail oriented, while others are neglectful. You will notice that some people are openly untrusting, while others demand that you trust them. Some people communicate well, while others are more aggressive. These differences can really bother a person, even if they are used to a particular culture, and even if they like that culture.

Adapting to different cultures
Some people think that it is necessary to adapt to a foreign culture if working overseas. They feel that it is necessary to wear a sari upon landing at Mumbai international airport. It then becomes necessary to eat your food with a roti using your hands. Next thing you know we are learning Hindi with a Marathi accent and bargaining with people at the grocery store. The problem with this is that Indian culture is a lot deeper than samosas and chai. Wearing a sari doesn’t make you Indian any more than living in a chicken coop makes you a chicken. There are cultural things that they just don’t teach in books, that you would only pick up on by living in a particular culture for a long time.

When to speak up and when to be quiet.
Sure, you can learn to make rotis and become semi-fluent in Bengali, but do you know when to shut up? In Indian culture, relationships have a pecking order. Sure, there are vast cultural differences between downtown Bangalore and 1.5 Km South of there in the more traditional neighborhoods. But, in India, the boss is generally a sort of a tyrant and his workers bow down to him and never challenge him. You will not learn this by stuffing yourself with samosas every day. You need to be in an environment of real Indians in India to learn this — and not some 3rd generation Indian-American who lives in Chicago who doesn’t like to be stereotyped as someone who likes samosas.

Why can’t they voice their concerns?
It is a common problem for Americans doing business in India that the workers will not speak up and voice their concerns. They will be very timid. When they do voice their concern, it will generally be after a problem has been brewing for a long time and they have been bottling up their upset feelings for several weeks. There are two ways of dealing with such a problem. You can learn to deal with them as an Indian boss would which might be heavy handed. I’m not implying that Indian bosses are always mean, because many are quite nice. But, they are culturally very authoritative, and that is what people are used to. If it were me, I would authoritatively inform them that they are to tell me about any issues in an organized way as soon as possible to avoid any suffering on their part. That way we can solve problems early on and keep everybody happy and a little less awkward.

Enough voicing concerns already!
The next problem in India, is when the workers speak up — that’s even worse. Workers tend to tell me their opinions in a very annoying and awkward way. Their concerns are often valid, but tend to be from a point of view that is very petty from a larger point of view.

The job interview: compensating for being from a passive culture
It is common for people from Asian countries including India to be overly passive at job interviews. If you don’t take the lead, they will just sit there. They will seldom boast about their achievements and answers tend to be shorter rather than longer. Yes, Indians look quite different from their East Asian counterparts and behave differently too, but they have more in common than you think. There have been case studies of people from Asia who tried to overcompensate for their Asian-ness and act too bold in interviews. One gentleman went so far to claim that the boss’ idea was completely wrong in a very important meeting to show his leadership qualities. In American culture, standing your ground, and promoting your worth is important, but as in all other cultures, there is what I call a “range of acceptability” in behavior, and arguing with your boss at an important meeting crosses the line even in America!

Being liked is more important than fitting in
Many people feel that they have to culturally adapt themselves in order to be liked. This is sort of true to a point. It is okay to be different, but not that okay if your differentness clashes with your boss. Even within the same culture, there can be tremendous clash, and the clash bothers people a lot more than others who have different attributes. People might appreciate you due to your different attributes.

A tale of two cultures
Let’s take two opposite cultures: Americans and Thais. Americans generally seem to like Thai people, Thai food, and even Thai Buddhism. Thais tend to like all white people (falang) by definition as well. What two cultures could be more different or opposite than Americans and Thais? If something bad happens to an American they will yell or cry all day while the Thai will be a lot more accepting of their destiny and seek solace in the comfort of the Buddha. Americans are often serious or angry, while Thais are outwardly happy and smile all the time. Americans are in a hurry and talk fast. Thais talk slow in a calming nasal tone of voice. Americans tend to like mild food while Thais like spicy food. American women like to confront men while Thai women are more agreeable. So, how is it that these two seemingly opposite cultures like each other so much? Do opposites attract? That might be part of it. Thais don’t step on people’s toes much. They are normally gentle people. They are seldom rude, although they will be if they really don’t like someone (I have a story about that.) When Americans are with Thais, they appreciate how nice people are. Sure, there are differences, but the differences are not generally seen as bad differences. To date, I’ve never met an American with Thaiaphobia!

Expats in China verses London.
American expats tend to last longer in China than they do in England. Why is this? Perhaps, the expats who visit China are used to the idea that things will be different and embrace the differences. Meanwhile the expats who live in London don’t really want to live in a different culture and can’t tolerate the minuscule differences that confront them in London. On the other hand, Brits can be condescending and rigid, while Chinese are more happy go lucky and bow down to white people. Maybe Americans are treated better by the Chinese and tolerate China as a result even though it is ten times as different as England.

Bottom line — what is important in intercultural work?
Being liked is important. You never know why someone will like you. They might like you for your differences. They might like you because you took the trouble to learn how to make samosas while wearing a selwar kurta. They might like you because you don’t abuse them as much as their regular boss. The possibilities are endless. Becoming similar to the culture you are living in is not always the solution. Sometimes you need to adapt only to a point, but learn how to work positively with your new culture rather than to conform to it. Perhaps it is what is different about you that helps you deal better with Bengladeshis in the work force than their local born boss. Have you ever thought of that?

How different cultures handle time

August 18, 2014 by 123outsource
Categories: Management, Of Interest | Tagged , , , , , | Leave a comment

This entry is a little hard for me to write because my personal experience differs completely with what the textbooks say about cultures.

Who is fast & who is slow?
When Americans go to France, they complain that the French are so slow. When Indians deal with the French, they complain that French are so rigid about deadlines. So, which is which? The answer is that sensitivity to time and deadlines is cultural, and it is relevant. Additionally, individuals in particular cultures handle time restraints very differently from others in that same culture which adds another layer of complexity.

Mapping different cultures
While perusing Harvard Business Review’s blog, I came across an article about mapping different cultures. Instead of having a geographical map showing where particular countries are, you have a cultural map showing where cultures are relative to other cultures in particular respects. This was very interesting to me.

Factors in culture mapping
The factors that were considered in management culture included sensitivity to deadlines, how specific you were in communication, how directly you voiced negative feedback, how hierachical society is, how people avoid confrontation, and other factors as well. This particular article is focusing more on how various cultures handle time sensitivity.

If I drew my own map for time sensitivity it would look like this:
Korea; Japan; Germany; Switzerland; Scandinavia; US; Canada; China; France; Italy; Russia; Arabia; Latin America; Southeast Asia; India; Pakistan; Subsaharan Africa.

Koreans just can’t wait.
Koreans in my experience are the most impatient people who exist. There have been studies on Koreans that show particular traits of impatience. It is common for Koreans to hover next to the microwave when making instant noodles counting every second in the count down as if they are watching the space shuttle awaiting for take off. I remember having massage from a Korean grandmother. After the massage was over, she always wanted to barge in with a few dixie cups of water before I had my clothes on. I asked if she could wait 20 seconds, but I was asking too much. In other cultures, they might keep me waiting seven minutes for my water until I got the water myself. And if they microwaved soup in a slower culture, and get into a conversation, and it might be cold by the time it reaches you.

The culture map that I referenced did not have any data on Arabs, or Thais as it only examined six interesting and diverse cultures in so many ways. I wish it had more like two dozen cultures to be more thorough.

My problem with Indians
After looking at all of the differences between cultures, I begin to realize what my problem with Indians is — they have a strict hierarchy. I don’t mind following authority providing they are doing what they are doing what they are supposed to. But, what if they are being hypocrites, causing dysfunction and chaos? I can’t keep my mouth shut under those situations, yet Indians require that I do — hence a huge clash. On a brighter note, I am very relationship oriented like Indians, and value holistic thinking like the Japanese. Overall, I am not really clashing with other cultures any more than I clash with my own.

My experience with faster cultures
America is not one of the faster countries on the list, but overall is faster than average. I find that when I assign work to Americans, there is never any rush to get the work done. It is like living in a very expensive third world country where abandoned construction projects leave a pile of bricks for four months by the side of the road — except that I am in e-business and have the cyber equivalent of what I just described. In my business experience, Americans are not fast to get work done. In fact, I have found that Indians in the IT industry are a little faster than the average Americans in IT. I have also found that Indians like to map projects out point by point and typically won’t get started unless every minute detail is spelled out. Although oral communication with Indians is generally bad, and workmanship is not as tidy as in the US, they tend to get more work done more quickly and with less drama.

Intra-cultural diversity: what does that mean?
Additionally, Arabs have a reputation of never being on time. Sure, they are shrewd in business and impatient, but try getting them to show up for your business meeting at 3pm — they’ll show up at 5 or 6pm if you’re lucky. But, I also know Arabs who are always on time and get tons of work done very quickly. Cultural maps don’t take into consider intra-cultural diversity: the diversity among members of the same culture. Many cultures have huge gaps in the attitudes and behaviors of their members. There is some truth to the idea of the politically correct that “you can’t generalize.” Although, I will say that with Japanese, I’m not sure if there are any slow ones. I think that the samurai killed off all the slow ones a few generations ago leaving a condition that I call: survival of the fastest!

You might also like:

A tool that maps cultural differences
http://blogs.hbr.org/2014/04/a-tool-that-maps-out-cultural-differences/

24 tech workers for each manager?

August 15, 2014 by 123outsource
Categories: Management, Of Interest, Software Development | Tagged , , , | Leave a comment

Too many Indians and not enough chiefs!
I am always amazed by India. India has mastered the art of spreading valuable assets thinly. The meat is tiny pieces in Chinese fried rice in India. The portions of chicken are minute in biryani (to my dismay.) Managers are also spread thin at Indian software companies.

Managers are expensive in India
The reason why the ratio of managers to workers in India is so bad is because the pay rate for managers is very high since managers are in such short supply. In America, a manager might get paid 20-100% more than a worker. But, in India, a manager might get paid 2x to 8x the amount a worker gets in a high tech company for example. I don’t know the exact number, and the numbers change over time — but, this is the approximation of the reality.

You can’t watch your workers
The problem with having too many workers and not enough managers is that you can’t really watch your workers if you are so spread out. If you have self-managing workers, you don’t need to watch them much, and you don’t need to critique their work.

My way of looking at this problem is as follows.
If you have twenty-four workers who are all completely self-sustaining and know exactly what to do with hardly any intervention, then you might be able to have ten or more to a manager. I’m not sure if twenty-four works even under ideal circumstances. But, many workers play tricks, or don’t know how to get things done. If you have a team of twenty-four, it is likely that many will be trouble in some way, shape or form. New workers who have not been screened should ideally be placed in smaller teams so their work can be evaluated. If they do flawless work and can function without intervention, then perhaps they can be transferred to a larger team. New workers and problem workers need to be in smaller teams where you can keep more of an eye on them. In my opinion, the value of a worker is proportional to their productivity minus the amount of hell you go through trying to manage them. In many cases, many workers might have a sub-zero value (put on your sweater and winter hat.)

My personal story
I have too many things to do and several people to manage. I can’t manage them and do my own work at the same time. I have to put something on the back burner since I’m so busy. Unfortunately, it is common for me to get behind trying to manage my programmers. I just wonder how far behind a manager with twenty-four workers gets? Perhaps they just are not really managing those people at all…

Outsourcing makes the world go round!

June 19, 2014 by 123outsource
Categories: Of Interest | Tagged , , , | Leave a comment

Some people think that outsourcing is good because it allows you to cut costs. Others think that outsourcing is bad because it takes jobs that rightfully belong to Americans and gives it to undeserving poor people in foreign countries who have names that we can’t pronounce (and don’t want to learn to pronounce.) In California, some people think that there are too many Mexican immigrants coming in while others like the affordable source of labor. The truth is that without Mexican labor, nothing in California would get built, harvested, or done. The state would grind to a stop. You wouldn’t be able to get help at your restaurant and you would be able to run most types of businesses that rely on labor. We don’t realize this, but outsourcing is the same. Without outsourcing, America, Germany, and the UK would grind to a stop.

There is an acute labor shortage in industrialized countries. There are not enough people to do many of the tasks we need to have done. Those who are hard working already have jobs. Those who are lazy don’t deserve jobs. Whatever can’t be done here, needs to be shipped to wherever some willing and capable hands (fingers) can do it.

We take this for granted, but much of America’s medical transcriptions are done in the Philippines or India while we sleep. There would be horrible delays and triple the cost if those offshore agencies were not able to handle our medical transcription outsourcing needs. Something like 80% of UK’s programming is handled offshore. Without people in India and Eastern Europe helping out, how would the UK function? They would only be able to do 20% of the work.

I am struggling to find quality help in the United States for basic tasks such as programming, phone help, and other work. It is like pulling teeth to find someone willing to work who actually cooperates. It is not funny, and not pleasant. It is so nice to have the option to hire overseas to people who have a work ethic.

Also, there is a new outsourcing company in India that claims that they can enhance planetary movement through intermolecular technology (never heard of that.) I guess that proves that outsourcing really does make the earth go round — literally.

Outsourcing or Offshoring? Which is which?

June 16, 2014 by 123outsource
Categories: Of Interest, Semi-Popular | Tagged , , , , , | Leave a comment

When I use the word outsourcing, I am thinking of a mystical character named Rajiv who kisses his sari-clad wife goodbye, mounts his elephant, and makes his way down the crowded streets of Agra with his briefcase in one hand and his mobile phone in the other. Of course in real life, people in India only ride elephants for festivals since the cost of buying 600 bananas every time breakfast rolls around isn’t getting any cheaper. But, it is a nice caricature of Indians, having them ride exotic creatures.

But, outsourcing only means giving work to another company or freelancer to do. If the work is not done by an in-house staff member, that would constitute outsourcing.

Offshoring is another concept altogether. Offshoring is when you take your work and send it to some other country far far away. But, offshoring might not be outsourcing. If you had your own branch office in Nepal and hired your own people, it would be offshoring, but not outsourcing. If you are in Arkansas and hired a company next door to do your data entry, it would be outsourcing, but not offshoring.

Then, there is Nearshoring where you take your job and give it to somebody in another state or country that is not that far away. If an American companies hires someone in Mexico that would be nearshoring.

Then, there is Backshoring when you bring your overseas jobs back to the good ‘ole United States.

Then there is Non-shoring where you have your work done by the Outsourcing boat! Just have Isaac mix me another mojito!

All of these terms delight me, but what would be a good term for having someone on another planet do your work? What if your medium consults the spirits on the planet Gorkon for some deeply philosophical spiritual matter? Off-Planeting or Off-Terra-Firma-oring? Maybe Off-Terrestrializing.

Call earth for only 3 cents per minute!

You might also like:

Outsourcing: Why everyone is doing it. One bizarre example
http://bpo.123outsource.net/2014/03/25/outsourcing-why-everyone-is-doing-it-one-bizarre-example/

Don’t expect to get paid more due to your GPS coordinates
http://bpo.123outsource.net/2014/03/19/dont-expect-to-get-paid-more-due-to-your-gps-coordinates/

Can a top level executive really take a year off?

June 1, 2014 by 123outsource
Categories: Of Interest, Popular on Google+ | Tagged , , , , , | Leave a comment

The concept of a Sabbatical comes from the Hebrew tradition (that wasn’t always religiously followed) of letting the land rest every seven years. That way it would be refreshed for following years. If it were me, I would plant soybeans to get some nutrients back into the soil, but that is just me.

There is even a mystical river in Jewish tradition called the Sambatyon River that spits up rocks six days a week but rests on the seventh. Where is this mystical river? I bet it would be a good tourist attraction. It might only exist in the ethereal realm somewhere near Shambhala!

But, what about an executive taking time off? I take a week off or ten days off regularly. I work seven days a week and need a change of scenery otherwise I lose my mind. Taking a month off would be a stretch, but a year? Most executives can’t afford to do this because they would lose their job permanently. Sure, they might be able to reapply and get back in if their boss liked them, but there would be no guarantees. If you run your own company, your company might not exist after you hire some other guy to manage it for a year. Most people are screw-ups, so if you plan on being totally uninvolved, make sure that new manager is thoroughly tested over a three year period at a minimum.

But, maybe it is a good idea for this to be a cultural norm. Professors get to take a year off. Why can’t executives? Maybe larger companies could have a dental plan, health benefits, and a 30% paid sabbatical. If there were some system in place like a maternity leave which is standardized in many countries, then people could take that break they really need.

Executives are decision makers by trade. They live in a changing world, and the articles I read suggest that CEO’s burnout and crumble after around — you guessed it — seven to nine years. The opportune time to take a break is in exactly seven years. It is like taking a cruise on Princess Cruises — “Come back new.” Well, that is what they say in their commercials. Taking a break from work will not help with tactical decisions. But, tactical skill would come back quickly in only a few months. Strategical decision making skills could be greatly refreshed from taking a year off and seeing the world. You would be very deeply rested and have a completely new perspective on life, especially if you lived in different countries during this time or went back to school to take a few refresher courses.

After all of this time I’m spending writing about sabbaticals, I’m beginning to think it is far past due for me to take one! But, where will I travel to? Bali, China, Dubai, The Himalayas, and of course — the Sambatyon river (if I can find it.) My intuition tells me that it is in North Africa somewhere if it indeed exists. Maybe I’ll find the lost tribe roasting marshmallows on a camping trip on the banks of that river.

The world’s best cities to live in

April 21, 2014 by 123outsource
Categories: Of Interest | Tagged , | Leave a comment

The best cities in the world to live in might not be the best for you. Rankings for which cities are best are normally based on crime levels, quality of medical care, levels of censorship, weather, schools and transportation. My personal qualifications for a good city to live in include how good the hiking is, quality of weather, how nice the locals are, and how good the Chinese and Thai cuisine is.

The experts chose cities like:
Auckland, NZ
Perth, Australia
Helsinki, Finland
Sydney, Australia
Adelaide, Australia
Calgary, Canada
Toronto, Canada
Vancouver, Canada
Vienna, Austria
Melbourne Australia

Commentary
I remember reading articles about the same subject many years ago and Sydney, Melbourne, and Vancouver, BC were at the top of the list.

It is interesting that no city in the United States is on the top ten list. Americans pride themselves in being the best nation on earth, and fight overseas for freedom while we have very limited freedom at home. Yet, our cities are ridden with gangs, traffic, poor public transportation, pollution, bad schools, but really good Chinese good. Listen, I know what my priorities are! I am not sure why America doesn’t put a priority on having nice places to live. I guess people are too busy thinking about themselves to care.

Vancouver, BC
I will say, that I visited Vancouver, BC and it was very nice. There were wonderful markets on the metro stops where you could browse dozens of small stores. The harbor had great views, and wonderful marinas. The people were not that bad considering it was Canada (sorry for the sarcasm.) But, the food was really atrocious. Be cautious eating Chinese food in Vancouver. If you are in the wrong neighborhood they will Anglify to the point where it shouldn’t be consumed by human beings. Overall it is a slow city, with quiet people, and very bad food. Beautiful to look at, but not a place for a fast moving person who enjoys the finer aspects of life.

Toronto, ON
I also visited Toronto. The food was much better than Vancouver and there were people from all over the world. Cosmopolitan as it was, the weather there is really bad, and there were very finite things to do. I visited a few museums which I liked, but after two days of touring, I had run out of things to do. Toronto seems like a boring place to live with a high standard of living.

Personally, based on what I know about the world, my list might be a little different.

————————————————————————
My top 10 list (well, let’s start with 3 for now)
————————————————————————
I’m not sure how to categorize my top picks of cities. These cities are good for those who will enjoy their attributes and offerings. The above top 10 list has great cities, but too sleepy for my taste. Here are some more active cities with unique offerings.

Singapore
Singapore is a beautiful island. It is culturally slanted towards modernized Chinese people, but very hospitable towards all cultures. And they speak English in addition to Mandarin, Malay, and Indian languages. Rent in Singapore is considerably less expensive than in the USA even though they are an island. The food is excellent, and the city is clean. Sure, the government is controlling, but there is hardly any crime, and no traffic! The thing the locals complain most about are the fines. In Singapore you can get fined for littering, jay-walking, or even failing to wash your car every several days! Ouch!

Dubai: UAE
I have not been to Dubai, and it is not for everyone. The weather can be a little intense. Additionally, the residents are typically wealthy or poor, and the percentage of middle class folks would be less in Dubai than a Western country. On the other hand, it is clean, safe, and the standards for life are high. Friends have told me that the quality of any type of restaurant is far better in Dubai than anywhere else in the world. Also, there is an element of creativity gone wild. They have architecture that is all-out in a sense. They have a cork-screw skyscraper which is as unique as it is tall. They have the Barj Al-Arab hotel which is a very classy and uniquely shaped building (shaped like a sail.) They have “The World” where you can buy an island in a microcosm of the world built purely out of piles of sand in the Arabian Gulf. You can also go on a camel tour of the desert. English, Filipino, Hindi, and Arabic are widely spoken there, so most people will have an easy time communicating! I’m not sure how Dubai compares to Perth, or Vancouver, but there is a level of excitement and speed in living that cannot be paralleled in the sleepy cities of Canada or Australia.

San Diego
Although all American cities tend to be a bit disappointing these days, San Diego is unique. As with Los Angeles and other areas in Southern California — you can visit the beach, desert, and mountains all within hours. In the case of San Diego, you can visit all three in about twenty minutes if there is no traffic. San Diego offers great food, friendly people (much better than Los Angeles) lots of water activities, hiking, spiritual venues, and more. You are minutes from the border with Mexico where you can enjoy a completely different culture. I would wait until after the drug war is over to visit Tijuana, but that is up to you! There are unique areas like Old-Town where you can enjoy traditional shops and restaurants. There are also many unique suburbs other nearby areas to explore. The desert has many diverse ecosystems near San Diego, and within a few hours, there are endless natural places in the desert to explore.

Tweets:
(1) The experts say the best cities in the world to live in are in Canada & Australia
(2) IMO, the best cities in the world are clean, safe & have lots to do!

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Which are the happiest and healthiest countries in the world?
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Why a great CEO is worth 6000 times more than the average worker
http://bpo.123outsource.net/2014/03/06/why-a-great-ceo-is-worth-6000-times-more-than-the-average-worker/

Overseas Outsourcing in the 21st century: Different Countries, Diverse Benefits?

April 18, 2014 by 123outsource
Categories: Of Interest, Semi-Popular | Tagged , , , , , , , , , | Leave a comment

The notion of outsourcing work to overseas companies is, of course, not a new one. For many years, a large number of American businesses have selected to recruit talent from abroad rather than enlist assistance from within the US itself; for a variety of reasons; tax benefits being among the most prevalent. For many years, India has dominated the face of outsourcing; and in recent times, India’s economy has witnessed an incredible $69 billion boom from outsourcing alone; causing previously unheard of destinations such as Hyderabad and Chennai growing to become thriving business cities. However, as the 21st century marches on, the stronghold that India holds on the outsourcing market begins to loosen. Other up and coming countries are staking their claim; and US companies are gradually broadening their horizons and exploring outsourcing opportunities in other lands. So just what are the countries currently challenging India’s position as number one outsourcing nation in the world, and what are the benefits to working with them?

Countries on the Rise

In recent months, the US has witnessed a number of relative ‘newcomers’ to the outsourcing scene, making distinctive impact on the market. ComputerWeekly.com identifies five particular countries on the rise in the IT sector; including unsurprisingly, China, but perhaps more surprisingly, countries such as Bulgaria and Egypt. Interestingly, a number of global companies in the US are turning to Middle Eastern outsourcing services; partially due to the ‘skilled programming workforce’, but also due to the considerable tax incentives that the Egyptian government (and others) are offering to outsourcing prospects. Interestingly, large Indian companies are also outsourcing to the Middle East, such as Wipro and Satyam. BusinessWeek.com also identifies other up and coming major players in the outsourcing arena, such as Poland, Brazil and Argentina.

Knowing Where to Hire

Now that the playing field has leveled out, and India is no longer the only viable option for a US company looking to outsource, the question on every business owner’s mind is ‘where to head to for outsourcing work now?’ With a number of excellent options now available, the company must now start to take a number of things into consideration. Of course, wages are as relevant as ever, but it is also worthwhile to consider other aspects, such as performance; for example, if outsourcing call center services, how adept is the center at US English, and how understandable is the accent? (Many customers cite ‘hard to understand’ call center workers as a pet hate when communicating with a company). Consider turnaround time too. A lower wage rate may look appealing on paper, but if the job takes twice as long to complete, then it may well be false economy. It is a good idea, before committing to a large-scale outsourcing venture, to visit the establishment and get in-depth knowledge of their working arrangements, level of commitment and working conditions. Of course, this can be a straight-forward business trip, or it can be combined with pleasure; giving you a valuable opportunity to not only familiarize yourself with the company, but to learn about the culture of the country you are about to enter into a working alliance with.

Harnessing the Power of Outsourcing

Used appropriately, outsourcing still remains one of the most cost-effective decisions that a US company can make. For example, a Chinese manufacturer earns on average, around 60 cents an hour; considerably less than their US counterparts. With savings such as this, it is clear to see why outsourcing is such an appealing option. Obama recently spoke out against outsourcing, and recommended revamping the federal tax code to encourage more work to stay on US soil. But even with tax laws relaxed, it would be hard for comparable US outsourcing services to compete with those from abroad. Quite simply, the current international economic structure supports outsourcing from overseas. For US companies, outsourcing also means being able to hire from a greatly increased pool of talent. For example, Brazil currently boasts a huge number of professionals who are expert in JAVA programming, but will offer their services for a considerable amount less than their US counterparts. It is unsurprising why more and more US companies are broadening their outlook and turning to overseas companies to develop their products and improve their productivity.

Tweets:
(1) India has dominated the outsourcing scene for years. But, Bulgaria and Egypt are on the rise!
(2) Getting a good price on outsourcing is one thing, but what if the turnaround is slow?

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Marketing your outsourcing company
http://bpo.123outsource.net/2010/11/24/marketing-your-outsourcing-company/

Offshoring & Outsourcing: which country is right for you?
http://bpo.123outsource.net/2013/01/07/offshoring-outsourcin%E2%80%8Bg-which-country-is-right-for-your-company-to-offshore-to/

You are on vacation and your world falls apart

April 14, 2014 by 123outsource
Categories: Of Interest | Tagged , | Leave a comment

I always fear going away on vacation. I will be away from my desk, my checkbook, my familiar setting. What if something goes wrong? The worst problems I have had in business had to do with connecting a person working an American schedule with someone in India. I am flexible and can be available at any hour of the day or night, but others are rigid and work in offices. It took a week of me pestering everyone in site to get John and Ramesh on the phone together to solve a very simple technical problem. Why is life like pulling teeth.

But, recently, I was not in India. I was in Arizona, only a few hours from my home. I went away to get some desert energy in me. I feel very boosted up after a quick trip to the desert for a few days. The spirits do healing on me. The cactuses are soothing to me (even though they have needles.) The break from work for a few days also does miracles.

But, my site went down while in Arizona. My site goes down every several weeks. But, getting it back up requires me to bug the hell out of whomever can get it back up to talk to the server company for me. Connie called me and let me know what had happened. Then, I called John, and left him messages. I couldn’t reach John, my regular contact. So, I called my new programmer. He was also not there. I was really sweating at this point. We get 5000 visitors per day on my site and going down for more than an hour will get us complaints and ruin our stats. So, the programmer called me back an hour later and we were back in action.

The point is that I had to learn how to be the “At home me” and solve problems while I was in my car in the desert on an Indian reservation. I’m not used to solving serious problems while driving around. But, I managed, and I lived to tell about it. Yes, I get overly paranoid about things that might not phase others. But, maybe that is why God entrusted me with a few critical operations and not someone else! He knows I care.

But, I’m reading about people who go on vacation for a month with no phone? In my business we might be out of business if that happened. Others don’t seem to be able to put Humpty Dumpty back together without my intervention. Yes, it makes me feel needed, but seriously — can’t other people do anything without my constant nagging?

Tweets:
(1) I read about a guy who went on vacation w/o a phone? I would be out of biz in days like that!
(2) what if you go on vacation & something breaks or someone quits while you are gone?

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Outsourcing: Why Everyone is Doing it. One Bizarre Example

March 25, 2014 by 123outsource
Categories: Of Interest, Popular Posts | Tagged , , , , , , | 1 Comment

Outsourcing: Why Everyone is Doing it. One Bizarre Example

One U.S. software developer who makes a six-figure income recently admitted–when he was caught–that he outsources his work to a software developer in China and spends his time relaxing and browsing various websites. The cost? A mere 20% of his salary.

Also, please note: it is entirely possible to get comparable if not superior work from an IT company in India or China. Cost is not the only factor.

This case demonstrates why companies outsource–and how tired and discouraged even successful Americans are with work. Many people assume that outsourcing is the cruel scheme of big business in the U.S. or that the government is at fault for promoting outsourcing to IT companies in India or China. But in this case, the developer had a great reputation and paying work–but chose to jeopardize his position by outsourcing to an IT company in China. In short, he did not want to work or was not able to take the stress that came with the job.

U.S. companies, fueled by Bureau of Labor Statistics reports, point out that, in 2013, there are 120,000 new IT jobs created for people with computer science degrees, by only a little over 50,000 new college graduates qualified to fill these jobs…which invariably get filled by workers from foreign countries with temporary visas. Outsourcing to IT companies in India and elsewhere will continue as long as American companies find there are not enough qualified American workers to do the job.

In our experience, for example, many high-end software developers in California outsource their work to IT companies in India, and have a variety of explanations of how their work gets done and where. According to fastcompany.com, the global outsourcing industry was a 1.6 trillion dollar success story in 2007. The Wall Street Journal, as quoted by thinkprogress.org, confirmed that the largest corporations, including “General Electric, Caterpillar, Microsoft, Wal-Mart, Chevron, Cisco, Intel, Stanley Works, Merck, United Technologies, and Oracle…cut their workforces by 2.9 million people over the last decade while hiring 2.4 million people overseas.” These figures do not include thousands of jobs outsourced to IT companies in India or China by smaller firms across the U.S.

In addition to IT companies, Call Centers in India and Data Entry in India are getting a huge share of the global outsourcing market. Recently, Call Centers in the Philippines and South Africa are also popular outsourcing destinations.

Tweets:
(1) There are 120,000 new IT jobs every year, but only 50,000 new people to fill those jobs
(2) There is a growing shortage of programmers in the USA, and outsourcing fills the gap
(3) Programmer outsources work to China for 20% of salary!
Next: Outsourcing bedsores he developed from lying around
(4) Only 50,000 U.S. grads qualified to fill 120,000 IT jobs for compu-sci majors. Foreigers w/temporary visas love IT!
(5) Global outsourcing industry raked in $1.6 trillion in 2007! That’s almost enough to pay someone else 2 do the raking
(6) Big U.S. companies have given the boot to 2.9 million & hired 2.4 million overseas! The boot wasn’t even made in US.
(7) India BPO’s are getting a huge share of the global outsourcing market. Forget India ink. We’re talking India Inc.
(8) Programmer outsources work to China for 20% of salary! Next: Outsourcing free time with family driving him crazy!

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Which are the happiest and healthiest countries in the world?

March 13, 2014 by 123outsource
Categories: Of Interest, Popular on Twitter | Tagged | Leave a comment

You might read ten different magazine articles and get twelve different opinions. America seems to be losing ground as a happy country. People are losing faith in the government and see opportunity as something that is less and less. Pessimism has set in.

Denmark and Sweden are some of the happiest countries in the planet. Ironically, Sweden also has one of the highest suicide rates. I guess after you discount the suicides, that cleans out the bell-curve making the remaining overall population seem happy!

I’m reading in an article by Forbes that Luxembourg is the healthiest nation on Earth. Iceland is the safest, and Switzerland is the best governed. Some of the African countries are the most unhappy with low incomes and low life expectancy.

I remember reading long ago that Bhutan was the happiest country on earth with a high level of Gross National Happiness. This ended as Bhutan introduced night-life, fashion clothes and television into their lifestyle. Buddhism seemed to keep them happier than modern culture.

My take on the matter is that countries with these attributes have longer living and healthier citizens: (1) Consumption of Red Wine (2) Fish (3) More whole foods (4) Good healthcare (5) A more casual lifestyle with closer ties to loved ones! My opinions are based on what I was reading twenty years ago. The Greeks and Italians have a much more carefree life, with lots more time spent with family, lots of healthy seafood, vegetables, and red wine. Meanwhile the Americans and Taiwanese are fighting to make a fast buck and miserable every step of the way, developing horrible diseases later in life. The irony is that the over-working Americans went from stressed, to hopeless with the economy slowing down. Why is it so hard to strike a balance in life.

During my visit to Denmark for a spiritual gathering, I was reminded daily how much I disliked their beautiful resort of a country. The people were very helpful, but there was nothing to do and it was boring. The only people who were friendly with me were muslims. The culture of the whites was very frigid to me. But, the people were very happy with their country and their government.

The attitude of the Asian and Middle-Eastern immigrants matched the attitude of the whites — they loved their country (even though they didn’t like each other).

My finding is that it is hard(er) to be happy when society has removed the basic building blocks of happiness from your life. If you are forced to work all the time and not have a family, how can you be happy? If you live near a Whole Foods store, you can still get the wine and vegetables, but the “Family” aisle where they sell ready-made families was not well stocked last time I was there.

In the USA, we live in a country of broken families and unhealthy lifestyles. It seems that the only way to be happy is to engineer your life according to very carefully prescribed guidelines. Take enough time off. Spend enough time with others. Relax. Meditate on the cosmos. Don’t think too much about the future. Enjoy what you are doing. Don’t forget about the red wine. Oh — and don’t forget to smell the flowers! In short — engineer the right attitude.

Tweets:
(1) Are the happiest countries in the world necessarily the happiest? Does money make you happy?
(2) Why are the Danes so happy while the Americans are not?
(3) Swedes are one of the happiest people on earth, but they also have the highest suicide rate.

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Why a great CEO is worth 6000 times more than the average worker

March 6, 2014 by 123outsource
Categories: Of Interest | Tagged , | Leave a comment

I was discussing this issue with a friend the other day. She thought it was not fair that a particular CEO was getting paid roughly 6000 times what the average worker was at his company. She thought the CEO was paid unfairly too much. I also found it not fair. I thought that perhaps the CEO might deserve much more than 6000 times what the average worker got. But, why?

Workers are commodities
Unless you have some special personality or skill, you do the same work that millions of others can do. Your wage is subject to a market rate based on what you do, how long you have been doing it, how reliable and good their work is, and a few other factors. People with specialized jobs like teachers, salespeople, CEO’s, etc., are not commodities. The subtle differences in their work can make a huge difference in profitablity.

The mechanic who was fast
If a mechanic comes into work in the morning, he can do “x” amount of work. If he is fast, he can do a little more, and if he is incompetent, he can get the garage in a little bit of trouble. But, the scale of trouble he can create is no larger than the particular car he is working on (assuming there is no multi-care collission caused by his carelessness installing brakes). A well seasoned (greased) mechanic compared to a functional beginner might be worth 3x the salary.

A tale of two teachers
But, let’s imagine differences in quality of a teacher for example. Joe the teacher comes in, bores his students all day, nobody learns much, and they all go home feeling depressed. Frank the teacher on the other hand is not only charismatic, but studied advanced techniques in learning styles and applies 30 different learning techniques that no other teacher in his town have even heard of. Frank got his students not only to stay awake in class, but think outside the box, do two hours of homework nightly, and amount to something in life. Frank’s contribution completely changed the destiny of 30 students, not to mention thousands of people who those students would interact with over the course of their lives. Therefor, Joe deserves $40,000 per year, but Frank gets $45,000 because he is putting in the extra mile. In real life, the school systems prefer Joe, because he doesn’t rock the boat, and Frank would probably get fired. But, in my mind, Joe should get $20,000 per year and Frank should get $150,000. The output of their work is drastically different and their effect on society is not even something that we can measure.

The miracle CEO
A good teacher can make a much larger benefit to society than a bad teacher. The difference in effect could be ten fold according to my style of thinking. But, choosing a CEO for a large company is much more critical than which mechanic or teacher you choose. CEOs are not workers. They don’t actually “do” anything. CEOs make decisions. They allocate funds. They hire and fire critical people in the company. They make long range decisions. They buy and sell huge assets.

A good CEO might think through a purchasing decision very carefully, analyzing all of the details and using very meticulous skills to make his decision. Imagine if a mediocre CEO made the same decision, they might buy a factory in the wrong location, or at the wrong price, the wrong size, or overlook some other critical aspect of the transaction. It might be only 70% as efficient as the one the smart CEO purchased. A single bad decision like that could cost a company 10 million per year for twenty years. That is 200 million in lost assets because of a bad CEO. A real CEO might make ten big decisions per year as well as many smaller decisions. If a CEO hires a dynamo Vice President who helps the company gain 20% market share, that could be worth 20 million the first year. A bad CEO might hire the wrong Vice President and lose an equal amount, or simply maintain the status quo instead of actualizing growth potential. The scope of how important a good decision is, is staggering.

Doing the math
Let’s say that the average worker at ZYX Company makes $20,000 per year, and the CEO makes 20 million per year. That is 1000 times as much as the average worker makes. Is it fair? If you put even the smartest of those workers in the CEOs position, how much money would they lose the first month through bad decision making? They could lose 20 million per month. Is it worth paying 20 million a year so that you don’t lose 200 million per year? Saving a little money by purchasing the services of a less than perfect CEO can cost you much more than their salary in losses or lost opportunities. Look at the bigger picture!

Tweets:
(1) Shelly says its not fair that the CEO gets 6000x the average worker. I feel he deserves more!
(2) A good CEO can save a company millions, train workers, and drive a company to success!
(3) A CEO’s salary is not based on how much he works, but the quality of his decisions.

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