CCT225H5 Lecture Notes - Lecture 11: Systems Theory, Desktop Computer, Cybernetics
2 May 2018
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CCT225: WEEK 12 – Systems Thinking about Business Systems
Reminder: Week 11
- System thinking
Offshore Outsourcing
- Where do the benefits go?
o First: the benefits go in India
o Offshored dollar goes partly to India: $.33
o The work went offshore because it saved $.58
o US firms are suppliers to Indian outsourcing firms (banking, software, telecom):
$.05
o Because some Indian outsourcing firms owned by US firms, some profits return
to US: $.04
o Second: In the US
▪ Some of the earnings from outsourcing go to US-owned firms in
Idia…$. per dollar paid
▪ US firms are among the suppliers to Indian outsourcing firms (banking,
software, telecom), plus Indian employees buy goods and services, some
of the iported…$.
▪ US firms save costs (which go to shareholders or customers …$.8
▪ Most US workers get new jobs (the US has very absorptive labour
arkets …$.
▪ Some of the new work to US workers in to supply goods and service to
India
o The Net Effect
▪ Offshorings Value to the US
▪ Benefit of $1 of US Offshore spending, 2002 in $
▪ Savings to Firms/Customers - $0.58
▪ Sales of US goods/services to india - $0.05
▪ Transfer of Profits to US Owers of India-based firms - $0.04
▪ Value of Labour Re-deployed in the US - $0.46
▪ Net Benefit to US - $1.13
- Where do they end up?
o 3.3 million business processing jobs offshore by 2015(400,000 in 2003)
o $60/hour US software developers for $6/hour in India
o Opposition
▪ US House Committee on Small Business
▪ Several US states
▪ Unions, especially Communications Workers of America
o Exporting jobs take a bow, Mr. President
▪ If the job is there, not here, there is loss
▪ Transfers wealth from US to Indian firms
o To understand exporting jobs
▪ Corporate investment system
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Cct225: week 12 systems thinking about business systems. Where do the benefits go: first: the benefits go in india, offshored dollar goes partly to india: $. 33, the work went offshore because it saved $. 58, us firms are suppliers to indian outsourcing firms (banking, software, telecom): $. 05: because some indian outsourcing firms owned by us firms, some profits return to us: $. 04, second: in the us, some of the earnings from outsourcing go to us-owned firms in. System thinking about a down-to-earth is a problem. The pro(cid:272)ess (cid:449)ill (cid:271)e a(cid:374)alysis (cid:894)redu(cid:272)i(cid:374)g to parts(cid:895) a(cid:374)d (cid:862)thought(cid:863) (cid:373)ea(cid:374)s a(cid:374)alysis. A specific cause is necessary for any effect. Cause leads tp effect with no recognition of environment. Newton (1642-1727): the universe is a machine. Inputs determine outputs via a discoverable algorithm (a computer!) System thinking: fusion of analysis and synthesis, how it is connected to a broader society. System: a whole or two or more parts that each can affect the whole.
