Friday, June 09, 2006

Logical conclusion to outsourcing!?

Came across this short and queer article, The Corner Office in Bangalore in NY Times (Subscription required).

It says,


So far, outsourcing manufacturing and services has led to higher chief executive compensation, at the expense of shareholder profit. For example, I.B.M.'s chief executive, Samuel J. Palmisano, who has been moving jobs to India, last year saw his total compensation rise 19 percent to $18.9 million — even as the total return for his company's stock fell 16 percent.


So the article concludes that this just proves there's a lot more to go in globalization and that maybe a good way to unlock tremendous value for shareholders would be if
they hired their chief executives from local offices - like Bangalore or Beijing

and that
installing a foreigner from a developing country as chief executive would be a savvy move.


Well, I donno how savvy it will be, but it's definitely good for us. But, I am sure our friends on the other side of the world might not agree on it. First it was brain drain - which benefited them directly, but now we are talking of power drain - in the opposite direction.

The article gets a little more interesting when it goes on to say

given the importance placed on performing well in science and math in countries like China and India, it would be more likely that an offshored chief executive would have had a rigorous technical education instead of degrees in the "softer" management disciplines that are common at American business schools.

10 comments:

pri said...

Did u hear the latest news dat many of the foreigners aspire to work in Indian based MNC's like satyam,wipro,TCS and INFY now and settle here??
Gosh!!what wud happen if both the trend continues??

BTW,,can i link ur blog in mine??

Janus said...

Have you ever been to an anglo saxon work place,have you experienced how the game works,The so called professionalism does not exist when it comes to CEO,mate.So dont think an anglo saxon organization is gonna hire a indian or chinky as CEO.If u still think ----dream on baby.Let us take kerala as consideration,we are running a hotel.in our hotel we have lot of staff,mallus ,tamils,kannadas,gultis ,whatever.But the owner is a mallu,that is you.Now a choice to make the new manager for hotel whom will you make ur new manager.tamil,kannada,gulti.take your own time,dont take out the business school verbal diarrohea here.if you are a normal business man who built the business you will prefer a mallu than anyone else.why
1) You understand their physche
2) you can predict their actions under pressure
3) It always feel good to put your life on your own kind.
You can call it racism or otherwise pure logic ,You may prefer a tamil ,if all the mallus are fools than the oters.
There is enough smart anglo saxons in most of the multinational companies.
And name an indian CEO in a anglo saxon company,a chinky,or even a german.
An indian hired an anglo saxon CEO for his mineral companies(a british).i forgot the name of the firm.The british fucked him so bad,he ------.hmmmm.
why SAP has a german CEO.why infy has an indian ceo.why wiro has an indian ceo.why fiat has an italian ceo.
Got the trend ??? It will happen when the whole world skin colour will be biege.for that all NRI indians should fuck anglo saxons.hmm let me see how i can help :) :)

juan said...

that's a very informative article. it brings out the multifaceted aspects of the global economy as far as out-sourcing is concerned. i mean one would estimate that the international scenario benefits from-

i might as well have said, ppphhrrr! (that's a fart noise btw) damn, i don't understand a word of these business articles - i feel even dumber now :| now i know why people pay so much for an MBA; you get to understand how the world works! ;)
right now, my contribution to saving the world is bitching about empty-headed bosses and the pathetic pay we drones get for put up with it :P

Girl With Big Eyes said...

:)) When I read the first two lines, I was like, oh no, this is someone impersonating as Juan :)

And darling, we also need people to bitch about empty-headed bosses and the pathetic pay. It takes all kind of us to make up with perfect (well, somewhat) world.

pri said...

thx a lott dear!! :)

BTW,,i wud really like u to spare ur precious time to read these blogs and post ur wise comments..

http://thewholeworldismine.blogspot.com/2006/06/hats-off.html

http://thewholeworldismine.blogspot.com/2006/05/best-letter-i-had-ever-received.html

Good day to u too!!
c ya...

juan said...

he he hee. hating bosses is a norm. if you don't hate your boss, check again, maybe he/she is not your boss! :P
from the sound of it guess you have a good one? :)

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