Outsourcing, Egypt, and the future of an Economy

             The last time I blogged talked about Outsourced, the doomed Thursday night Sitcom that caricaturized the offshoring and outsourcing sensation that was take the nation by storm. But enough escape into the everlasting bliss of sitcoms. Our reality is far blunter. Over the Past Few Years the world’s economic powerhouse has been overthrown. It was replaced by two kingdoms that can provide the world with a willing and cheaper workforce.   But how does this shift of power affect the world and more specifically Egypt; the number four center for outsourcing.

            Egypt is no stranger to revolution. In early 2011 the Egyptian people revolted and after a few weeks the reigning president for almost 40 years had stepped down. But as they know far too well revolting is easy, it’s the transition that’s hard. At the time before the revolution Egypt was in a “honeymoon phase of call centers” according to Pearce.  Despite its slightly higher rates they were becoming a very popular spot for call centers. It’s not surprising if you think about it. Right on the Mediterranean Sea they are perfectly placed to service “Europe and the Middle East.” The most prominent call center company’s in Egypt is Raya.  “Raya Call Centers, part of Egyptian technology company Raya Holdings, which provides outsourced contact center services to clients in Egypt and the region.”  They highlight the several factors explaining “Why Outsource to Egypt and Raya?” Interestingly they list the following.

The competitive edge of the call center industry in Egypt is the direct result of many factors:

• Plentiful workforce with more than 200,000 university graduates each year growing at 28% annually.
• 88% of relevant workforce enrolled in secondary schools.
• 45% of population is of age 15 – 39.
• Egypt ranks among the best in average wages and the lowest in infrastructure cost.

To quote my teacher, “What are the ramifications of this kind of thinking? What are they leaving out?”  

             Well that’s easy. What effect does it have on Egypt? If they had mentioned that they were providing jobs for a hurt economy they may have gained some sympathy. The issue of their argument is that it is solely based on logos and ethos and completely breeze over pathos.  But this is the rhetoric of the business world.   The economic environment of Egypt is very desperate.  And they don’t look at or reference the fact the situation that these people are under. But it is understandable.  After the revolution Egypt is vulnerable and other countries that are experiencing these transitions of power may begin to rise up. “I claim no clairvoyance or mystic sight “but the future is unclear Outsourcing’s effect on Egypt is nowhere near as major as on countries like India or China. Only time will tell if outsourcing is a curse or a blessing in disguise.

Works Cited

Hassey, Phil. "Egypt’s Crisis: Where Social Media Threatens Global Outsourcing." Egypt’s Crisis: Where Social Media Threatens Global Outsourcing. Horses for Sources, 30 Jan. 2011. Web. 29 Feb. 2012. <http://www.horsesforsources.com/egypt-crisis-012911>.

Pearce, Jonty. "Outsourcing: Is Egypt the New India?" Call Centre Helper Magazine. 5 Apr. 2011. Web. 29 Feb. 2012. <http://www.callcentrehelper.com/outsourcing-is-egypt-the-new-india-5.htm>.

Raya. "Raya - Why Outsource?" Welcome to Raya. Web. 29 Feb. 2012. <http://www.rayacorp.com/ShowPage.aspx?PID=63>.

Outsourced: Why ???????

May 13, 2011. NBC announced that it will yank Outsourced and replace it with a fantasy /mystery/crime drama series—Grim.  Great! So instead of clutching my sides with laughter from the ridiculous antics of the American Novelties call center in Mumbai, India I will be clutching my pillow with fear, from the creatures that go bump in the night.  I just don’t understand it. Thursdays were meant to be comedy night—if any one finds Grimm funny we might want to get them checked out.  The Office has been thriving for 7 seasons and it seems to tell the same old story—office life with a group of morons. People just don’t recognize good entertainment when they see it.

Outsourced had ingeniously caricaturized the outsourcing process.  By having the call center move from Kansas City to Mumbai, India the writers embraced   the main issue with outsourcing –the culture shock for both the workers and for those sent over to either manage or train. The actual act of outsourcing was seen as the company wishing to “downsize”. In a manner that Todd after going to a class to take over as a manager is greeted with an empty office and a choice: manage the Indian call center or lose his job.  We all know which of the two he chooses. Next thing we know he is halfway across the globe in a Mumbai taxi playing human Frogger.  Todd gets a true culture shock as he gets to know his employees and other managers who had been sent over to Mumbai.

The Indian workers are portrayed as either on the “A team” or the “B team” according to the insensitive Charlie. The A team which are the highly educated Indian who have returned home. They dress in western clothing and are like walking encyclopedias on American customs and Culture.  The B teams are the Indians who are new to American culture. They dress in the customary Indian fashion.  The B team, at first, doesn’t really understand the products they are selling “Jingle Jugs” to “ the Mistletoe Belt Buckle” and “Cheese Hats”. I don't blame them for not understanding the meaning behind these novelty items.  I barley understand them myself.

The customers are the stereotypical foreign image of America.  They are dumb, easily charmed by foreign accents, loud, and of course with a southern drawl. In other words a idiots. The only true saving grace, and its not by much, is Todd.  He at first comes off as an ignorant jerk when he either makes fun of Manmeet's name or says,  “ I am going to have a steak and I don't care what dirty looks the cows give me” or calling the different Indian foods different colored goop. But he actually does have the resemblance of a heart as he helps Mameet save his job by having breakup with his telephone girlfriends while selling them novelty times.

It’s no surprise that this show didn't make it to its second season. Yeah it was any but it wasn't really sustainable because it had offended the majority of its viewers in one-way or another. I guess I will have to become accustomed to having sessions with a shrink for being scared out of my mind.

Thank you from all of us here at David Kai's Notebook and good night.

Offshoring : the greatest thing since sliced bread

Outsourcing is the process of contracting a business function to someone else. Many times confused with offshoring which is the relocation by a company of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting; though recently it has become a kind of phenomenon in the world. Companies send the menial jobs away from the home country to other countries so that the business can be more specialized and streamline. This sounds great for business. Sometimes a little too great; to the point where we forget about the people who are doing our work.  Like a child at Christmas, we don't understand what is the result of offshoring on the countries we outsource and offshore to. What is the reality of these practices in Egypt? What role does it play in the structure of Egypt's economy?

              Egypt is number four in the world only behind, China, India, and Malaysia as a location for outsourcing and offshoring. According to Patrick Thibodeau's article, “Was Egypt oversold as top offshoring spot?"  He states that, "Egypt's rise as an offshore and regional tech venue is relatively new and rapid." But in the aftermath of the revolution, “tech work is being shifted out of country.” This puts Egypt in quite a predicament. How is it meant to keep these profitable jobs and continue with a long awaited political cleansing? Thibodeau’s source also references that, “Egypt's ‘outsourcing initiative was part of a much bigger economic development initiative, and it was all 'owned' by an inner group within the government and related agencies,” Many companies have left Egypt which has one of the highest unemployment rates in the world because there are very few jobs and too many people to fill them.  Egypt is a popular spot for offshored IT centers because, “Egypt's geographical position, close to Europe and a central location between East and West, makes it the ideal destination for outsourcing operations. Egypt is currently serving most geographies: Europe, North America, Australia, and, of course, the Middle East.”

Businesses have jumped at this opportunity to offshoring like wolves. The opportunity is highly profitable. It has become such a phenomenon that there is an Annual Arab Outsourcing & Strategic Partnerships Conference that will be taking place soon. The goal of the meeting is for business men on both sides of the pond to, “gain insights on successfully establishing and Managing Strategic Partnerships.” According to another blog on AMEinfo.com, “organizations in the Middle East are keen to explore the benefits of outsourcing as it helps them focus on core-competencies and outsource the support functions such as IT, finance, HR, procurement, logistics and maintenance.” This was posted in support of the Conference this May.

  Overall business and the government have really taken to this idea of offshoring. But it was very hard for me to find any blogs from the point of view of the people.  If you make the money in a way you control the information that’s out there. Business loves this idea of offshoring and I can’t deny that it is quite intriguing. What’s the catch? Something like this can’t last forever. Only as long as someone doesn’t speak up for the rights of the people.

Works Cited

All, Ann. "Egypt Is Middle East's Rising Outsourcing Star | Interviews | ITBusinessEdge.com." Business Technology News, Analysis and Context | ITBusinessEdge.com. 23 Dec. 2008. Web. 15 Feb. 2012. <http://www.itbusinessedge.com/cm/community/features/interviews/blog/egypt-is-middle-easts-rising-outsourcing-star/?cs=23212>.

Fersht, Phil. "Egypt's Crisis: Where Social Media Threatens Global Outsourcing | ZDNet." Technology News, Analysis, Comments and Product Reviews for IT Professionals | ZDNet. 31 Jan. 2011. Web. 15 Feb. 2012. <http://www.zdnet.com/blog/btl/egypts-crisis-where-social-media-threatens-global-outsourcing/44255>.

"4th Annual Arab Outsourcing & Strategic Partnerships Conference." Home - 4th Annual Arab Outsourcing & Strategic Partnerships Conference 2012, Dubai, UAE. Web. 15 Feb. 2012. <http://www.arab-outsourcing.com/>.

"Middle East Outsourcing Industry Offers Huge Growth Potential, Experts Conclude at Arab Outsourcing Conference | TCQ Triangle | AMEinfo.com." Middle East Business & Financial News | Business Directory & Current Events | AME Info. 30 Apr. 2009. Web. 15 Feb. 2012. <http://www.ameinfo.com/194756.html>.

Samson, Ted. "Egypt Ranked among Top Global Offshoring Destinations | Outsourcingoffshoring - InfoWorld." Business Technology, IT News, Product Reviews and Enterprise IT Strategies - InfoWorld. 2 Feb. 2011. Web. 15 Feb. 2012. <http://www.infoworld.com/t/outsourcingoffshoring/egypt-ranked-among-top-global-offshoring-destinations-276?page=0,1>.

Thibodeau, Patrick. "Was Egypt Oversold as Top Offshoring Spot?" Computerworld - IT News, Features, Blogs, Tech Reviews, Career Advice. 2 Feb. 2011. Web. 15 Feb. 2012. <http://www.computerworld.com/s/article/9207680/Was_Egypt_oversold_as_top_offshoring_spot_>.

Pride v. United Nations

My Japanese phone goes off at 5:00 A.M.  Annoyingly I'm awake. I force myself out of the Chinese sheets and comforter and step on to the cold wood floor from where I don't know. I grab a shirt and jeans together a 14 hour direct flight over the polar ice caps and a t- shirt from sunny Nicaragua. I’ve been around the world and haven’t left my bedroom.  So many of the products that we own aren’t from America and yet we wonder why unemployment is so high. Where has America’s pride gone?  Overseas to countries where it costs a fraction to produce. America claims that our pride was once in making some of the finest products that won us the World Wars. How much of our pride must we sell, discount, and give away until we say enough is enough?

Exiting the bathroom after washing up in the American sink, but only able to work it with Taiwanese faucets, I head into the kitchen.  The fridge and the dish washer are illegal immigrants one from Mexico, the latter from Canada. I wonder if our immigration policy will send my units back over the border. The toaster, microwave, and kettle still use a Chinese to English dictionary in order to make my food.  They have been here for at least 10 years I doubt they need them anymore. But why aren’t there more products with the label made in America? The issue is this sense of entitlement.

If you ask most kids what they want to be when they grow you will get a variety of answers; police, firefighter, business man or woman, the occasional president or celebrity. No one aspires to be a factory worker. Why? After WW2 it has become grunt work: the work of immigrants and the lower class. We are simply at the point where even the lower class is saying they don’t want those jobs.  So what do companies do they ship them overseas. And once you have seen that astronomical profit margins by sending your business overseas you won’t go back.  Forget the profits and remember the people. The millions of people without jobs while other countries profit over our laziness.  Hey I don’t mind having a house with products from enough places to hold the United Nations, but tell that to the families of those now out on the streets because there services were no longer required.