Tag: outsourcing

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Hot, Flat, and Crowded 2.0

Sometimes a 2.0 release is viewed as a fix for shortcomings in the initial release of just about any product….except this update from Tom Friedman: Hot, Flat, and Crowded 2.0: Why We Need a Green Revolution–and How It Can Renew America.
I quickly read version 1.0 as soon as it hit bookshelves and was just amazed at Friedman’s writing about the state of research, business and culture surrounding our planet. Missed reading this when it was originally released?

Yet as of late I have been reading so much about Wall Street’s clusterf*ck that I missed his update Hot, Flat, and Crowded 2.0: Why We Need a Green Revolution–and How It Can Renew America.

An overview to the version 2.0 release:Friedman explains how global warming, rapidly growing populations, and the astonishing expansion of the world’s middle class through globalization have produced a planet that is “hot, flat, and crowded.”  In this Release 2.0 edition, he also shows how the very habits that led us to ravage the natural world led to the meltdown of the financial markets and the Great Recession.  The challenge of a sustainable way of life presents the United States with an opportunity not only to rebuild its economy, but to lead the world in radically innovating toward cleaner energy.  And it could inspire Americans to something we haven’t seen in a long time—nation-building—by summoning the intelligence, creativity, and concern for the common good that are our greatest national resources.

In vivid, entertaining chapters, Friedman makes it clear that the green revolution the world needs is like no revolution before. It will be the biggest innovation project in American history; it will be hard, not easy; and it will change everything from what you put into your car to what you see on your electric bill. This is a great challenge, Friedman explains, but also a great opportunity, and one that America cannot afford to miss. Not only is American leadership the key to the healing of the earth; it is also our best strategy for the renewal of America.

Or consider the following accolades for his writing:

  • A New York Times Book Review Notable Book of the Year
  • A Washington Post Best Book of the Year
  • A Businessweek Best Business Book of the Year
  • A Chicago Tribune Best Book of the Year
  • A New York Times Book Review Notable Book of the Year
  • A Business Week Best Business Book of the Year
  • A Christian Science Monitor Best Book of the Year
  • A Pittsburgh Post-Gazette Best Book of the Year
  • A Booklist Editors’ Choice Best Book of the Year
  • Finalist for the Dayton Literary Peace Prize
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Latest read: Planet India

India is the second fastest growing economy in the world, second only to their Asian neighbor China.  Both have embraced globalization yet are racing to secure resources as their economies, populations, markets and environments grow out of control.  India has the second largest population with almost 1.5 billion citizens.

Planet IndiaMy understanding of India’s impact on the global market continues to grow after reading Planet India: How the Fastest Growing Democracy Is Transforming America and the World.  Mira Kamdar’s has hilighted both positive and negative (poverty, piracy and global warming) developments in India.

I’m very impressed by India’s innovation in creating the world’s next motion picture industry.  Bollywood will not compete with Hollywood in America, it will simply run it over as India’s youth overtakes America.  Remember their population is growing and has acquired new-found wealth as a result of globalization.  It is a safe bet their children will be interested in watching movies like American teenagers.

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Latest read: The Elephant and the Dragon

Tectonic Economics?  Robyn Meredith has written a must read book, The Elephant and the Dragon: The Rise of India and China and What It Means for All of Us. Take a look at Wall Street lately? Then think about oil, the environment and the post cold war shift in the global economy.  Its time for business and education to take note…and fast.
Tectonic Economics is about the impact of the two fastest growing economies who have embraced capitalism AND globalization at the same time.

And by the way America and Europe have been left out of this economic growth spurt since 9/11.

Actually at the rate China and India are rising you just need to look at both countries since 9/11 to see their immediate impact.

Meredith has done a great job of helping understand these two transformations.  There is no more waiting for a new generation they have arrived and instituted global change in less than a decade.  For most Americans they still do not see changes occurring at this speed affecting the global economy.

Meredith makes the hard salary figures easy to understand why companies around the globe have jumped to China and India.  But this will not be easy for IT professionals in America.  India’s InfoSys hires computer science graduates (some also have an MBA) to be a VoIP specialist in Bangalore with an annual salary of $5,000.  Yes, five grand a year for a VoIP specialist.  This similar type job in California via InfoSys pays $120,000.

This should be really easy to understand why hundreds of tech companies including Cisco, Apple, IBM and HP have moved operations (some larger than others) to Bangalore.  Remember you have to please your stockholders.  The changes already underway (and under the radar) will continue to add stress to America’s middle class.

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Latest read: Bangalore Tiger

Y2K.  Remember the rush to fix computer software that was programmed to stop working on January 1 2000?  Many Americans probably did not realize their software fix was coming from Indian companies including WiPro located in Bangalore India.  Today American business is filled with examples of India’s outsourcing success.

Bangalore TigerBangalore Tiger is a must read for everyone working in Information Technology. Organizational leaders will learn how one of the larger tech companies in India is changing the rules of business competition in today’s globalized marketplace. If you read

The World Is Flat then you already know about all the success coming from India’s technology outsourcing giants in Bangalore.

If you want to learn how a company located in the heart of India’s globalization capital can thrive this book is really for you. The early chapters focus on how Wipro is taking on the West (and winning) as a new breed of tech company.

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Latest read: China, Inc.

Ted Fishman’s China, Inc.: How the Rise of the Next Superpower Challenges America and the World is a much needed read in the new era of globalization. In today’s world it seems everything is about China.
There are so many emerging topics of interest Americans need to understand about this giant economy and manufacturing base.

So powerful in fact that it’s now on my recommended list for business and education. Actually I’ll move it next to Tom Friedman’s bestseller The World Is Flat and John Kao’s Innovation Nation as noteworthy companions.

So what? The next time your holding an empty coffee cup or your child’s toys, flip them over and discover the country of origin. Yes, China is changing the rules of business and society.

If you do not believe this impacts America’s school children — well … your in trouble. Consider China graduates more honors students than the total number of students in American schools. Think about that statistic and what it means for your children or your grand-children’s future job market in the coming decades. I’m even concerned about my own son’s future career choices, yet confident it will require him to speak a non-roman language.

Rapid changes in the business landscape via globalization means the global market will continue to get more competitive.  Americans will continue to be challenged to find secure, solid employment.  It will be just as challenging to find a company who does not outsource elements to China’s fast growing economic empire in order to stay competitive. Fishman delivers this message loud and clear.

china cement productionTake into consideration the production of cement. Do you see construction sites on your daily commute? Well think about the construction in China based upon this cement chart listed in Gigatons. Look how little America consumes next to China. What does that say about their growth?

Fishman also shares how the Chinese copy products (and processes) of successful companies around the world. In many cases buying a product and taking it back to China where its taken apart, examined, copied and produced at a fraction of the original vendor’s costs…regardless of copyright.

The Wisconsin connection:
Some of the more compelling chapters in Fishman’s books even cover the impact of Chinese manufacturing impacting local SE Wisconsin businesses.  Regardless of your geographic location in America, the story is the same.

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