Friday, April 30, 2004

Outsourcing and the concentration of wealth

Title: Deloitte Study Finds $356 Billion Outsourcing Trend; India to Benefit Most
Source: SmartPros
Date: April 18, 2004

From the article:
    In a comprehensive survey of their moves offshore, the world's 100 largest financial-services companies indicate they expect to transfer an estimated $356 billion of their operations and two million jobs offshore over the next five years in efforts to reduce their costs significantly.
So, banks will be firing two million workers and saving hundreds of billions of dollars. Will bank fees go down? No...

Instead, there will be a massive concentration of wealth in the bank's executives and shareholders. See this post, this post and this post. Chances are that fees will go up, rather than down, because people have no choice but to pay them -- see this post for an example.


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