Where Are Jobs Going Now? Peru, Bulgaria, Bangladesh. . .
By DANNY KING
Posted 2:45 PM 12/21/10 Technology, Economy, Careers
Take heart, America. Yours isn't the only country to lose jobs to developing nations.
Australia, Canada and Israel, among others, have dropped off the list of best places for information-technology and business-processing services, according to a report that research firm Gartner released Monday.
As more developing countries have created workforces that can handle those tasks at lower cost, Ireland, New Zealand, Singapore and Spain are also no longer on Gartner's list of the 30 best countries for outsourcing, which considers both costs and skill sets.
Meanwhile, Bangladesh, Bulgaria, Colombia, Peru and Mauritius have all joined the list for the first time, while Panama, Sri Lanka and Turkey reappeared after an absence during previous years. Those nations join South American countries, such as Argentina, Brazil, Chile and Colombia, as well as the Asian powerhouses of China and India.
Competition for Outsourcing Grows
The changes reflect the growing trend of cost-cutting via outsourcing, which started with U.S. companies and spread to other parts of the world.
Countries such as Mexico, Chile and Costa Rica have created government programs that boost education and upgrade the domestic labor pool. China and Malaysia, among others, have improved their infrastructure to make them attractive to tech companies. And Brazil's relatively stable government status keeps the country attractive to many different types of companies.
"In this increasingly dynamic global environment, multinational providers will continue to extend their footprint in different geographies, carrying with them their expertise and maturity, while local providers will strive to become offshore providers, searching for opportunities and niches they can explore," Ian Marriott, research vice president at Gartner, said in a statement. "Even though some countries are rated poorly for some categories, clients may find individual providers -- global and local -- whose capabilities mitigate some of the risks."
Where Are the Jobs Going?
Increased outsourcing has hindered the U.S.'s economic recovery and may pose similar problems to other countries that have been bumped off the list.
In November, the U.S. unemployment rate rose to 9.8% from 9.6% in October, with the U.S. private sector adding just 50,000 jobs -- about a third of what analysts had forecast. Additionally, the underemployment rate, which includes both the unemployed and those working part time who are seeking full-time jobs, remained flat at a staggering 17%, while the number of people out of work for at least six months increased to 6.3 million.
The threat of a similar "jobless recovery" means more could be at stake for countries, such as Canada and Israel, that have fallen off the list.
"In the past four decades, American-born workers have faced greater and greater competition from robots, far-away foreigners, recent immigrants and microprocessors," wrote Edward Leamer, director of UCLA'S Anderson Forecast, in a presentation earlier this month. "Technology and international trade have fundamentally altered the demand for skills and have changed the business cycle dynamics."
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China, Bangladesh to strengthen relations
(China Daily)
Updated: 2010-06-16 07:38
Dhaka - Chinese Vice President Xi Jinping met with Khaleda Zia, chairperson of Bangladesh's main opposition Bangladesh Nationalist Party (BNP) in the capital, Dhaka on Tuesday.
Xi lauded Zia's efforts to stregthen relations between China and Bangladesh.
"China and Bangladesh are good neighbors. This year is the 35th anniversary of establishment of diplomatic relationship between the two countries," Zia said.
"No matter how domestic and international circumstances change, the relationship between China and Bangladesh is always healthy," Xi said.
Xi arrived in Dhaka on Monday for a two-day official visit, the first leg of his four-nation tour from June 14 to June 24.
"We would like to promote the relationship with the BNP and other parties in Bangladesh based on equality, mutual trust, non-interference and make efforts to deepen the relationship between the two countries and two parties," he said.
Zia, who was twice prime minister, welcomed Xi to visit Bangladesh on behalf of all the party members and supporters of BNP.
On Monday, Xi offered a proposal to bolster bilateral relations during a meeting with Bangladeshi Prime Minister Sheikh Hasina Wajed.
That proposal included maintaining frequent high-level exchanges, expanding economic cooperation, exploring additional areas of cooperation and strengthening cultural exchanges.
He also said the Chinese government will continue to provide Bangladesh with adequate assistance, encouraging more Chinese enterprises to invest in Bangladesh.
"We will continue to encourage and support the involvement of large Chinese companies in important development projects in Bangladesh and try to finance bilateral cooperative projects," he said.
"We believe with the joint efforts of both sides, the closer comprehensive partnership of cooperation from a strategic perspective and on the basis of the principles of longstanding friendship, equality and mutual benefit, will generate new progress and benefit both peoples," he added.
On international and regional issues, Xi said China is willing to cooperate with Bangladesh on regional cooperation, climate change, energy security and safeguarding the key interests of developing countries.
Hasina extended her appreciation for China's assistance in boosting social and economic development in Bangladesh, adding that Dhaka attaches great importance to bilateral relations.
Xi said China greatly appreciates the strong support Bangladesh has given to Chinese core interests like the issues of Taiwan, Tibet and Xinjiang.
Xi also met with representatives of the Bangladesh-China People's Friendship Association (BCPFA) and other friendship organizations on Monday.
" We will expand exchanges between the two countries in the fields of culture, education, sports and tourism, and will support all friendship activities including the China-Bangladesh Friendship and Brightness Trip to consolidate the friendship between the two countries," Xi added.
Xinhua
(China Daily 06/16/2010 page6)
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Bangladesh approves Santos' $200 mln investment plan
Tue Dec 21, 2010 10:23am GMT
DHAKA Dec 21 (Reuters) - Bangladesh approved on Tuesday a $200 million investment plan by Australia's Santos International to drill three wells in the Bay of Bengal, a government minister said.
The approval came a month after the British oil and gas firm Cairn Energy decided to divest its minority interest in the Sangu gas field off the Bangladesh coast to Australian partner Santos.
Muhammad Enamul Huq, state minister for power, energy and mineral resources, told Reuters that the Australian company would complete drilling in the three gas structures by April 2012.
Last year, Santos and Cairn conducted the three-dimension (3D) seismic surveys, at a cost of $18 million, in and around the Sangu and on the prospective Magnama exploration site in the sea.
The gas structures where Santos would drill are located over 8,621 square kilometres in the Bay of Bengal.
Cairn earlier said it had discovered gas in all the structures, where drilling has been planned, but did not declare the size of reserve.
"We will be able to confirm the size of gas reserves there once we conduct drilling," said Laila Rahman, external affairs manager of Santos in Dhaka.
Santos will be the first foreign company allowed to sell gas to private users at market price from all the three gas structures.
Prior to Santos' acquisition, Cairn also obtained Bangladesh government's approval of right to sell gas from new structures to private buyers. (Reporting by Serajul Islam Quadir; Editing by Anis Ahmed and Muralikumar Anantharaman)
Tue Dec 21, 2010 10:23am GMT