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Looking for someone to laugh with and who I can cook for. Extra affectionate. Professional cuddler. I am fun lovingeasygoing and optimistic! Glass is always half full. Super funny and love to make people laugh. Two years ago, though, I went to a technology convention in Las Vegas and was approached by some medium-size [American] accounting firms, and they said they could not afford to set up big tax outsourcing operations to India, but the big guys could, and [the medium guys] wanted to get ahead of them.

So we developed a software product called VTR- Virtual Tax Room-to enable these medium-size accounting firms to easily outsource tax returns. These midsize firms "are getting a more level playing field, which they were denied before," said Jerry.

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Is the message to Americans, "Mama, don't let your kids grow up to be accountants"? I asked. Not really, said Rao. You know what is needed to prepare a tax return? Very little creative work.

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This is what will move overseas. Now let's talk about how we manage your estate and what you are going to do about your kids. Do you want to leave some money in your trusts? Gary Boomer, a CPA and CEO of Boomer Consulting in Manhattan, Kansas, wrote, "This past [tax] season produced over[outsourced] returns and has now expanded beyond individual returns to trusts, partnerships and corporations. The primary reason that the industry has been able to scale up as rapidly as it has over the past three years is due to the investment that these [foreign-based] companies have made in systems, processes and training.

With the help of high-speed communications, stringent training, and standardized forms, these young Indians can fairly rapidly be converted into basic Western accountants at a fraction of the cost. Some of the Indian accounting firms even go about marketing themselves to American firms through teleconferencing and skip the travel.

Concluded Boomer, "The accounting profession is currently in transformation.

Those who get caught in the past and resist change will be forced deeper into commoditization. Those who can create value through leadership, relationships and creativity will transform the industry, as well as strengthen relationships with their existing clients.

What you're telling me, I said to Rao, is that no matter what your profession-doctor, lawyer, architect, accountant-if you are an American, you better be good at the touchy-feely service stuff, because anything that can be digitized can be outsourced to either the smartest or the cheapest producer, or both. Rao answered, "Everyone has to focus on what exactly is their value-add.

But what if I am just an average accountant? I went to a state university. Eventually I got my CPA. I work in a big accounting firm, doing a lot of standard work. I rarely meet with clients. They keep me in the back.

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But it is a decent living and the firm is basically happy with me. What is going to happen to me in this system? We are in the middle of a big technological change, and when you live in a society that is at the cutting edge of that change [like America], it is hard to predict.

It's easy to predict for someone living in India. In ten years we are going to be doing a lot of the stuff that is being done in America today. We can predict our future. But we are behind you. You are defining the future.

America is always on the edge of the next creative wave So it is difficult to look into the eyes of that accountant and say this is what is going to be. We should not trivialize that. We must deal with it and talk about it honestly Any activity where we can digitize and decompose the value chain, and move the work around, will get moved around.

Some people will say, Yes, but you can't serve me a steak. We can say, Yes, Mr. Friedman, we can give you a table by the window. If you go back and read the basic economics textbooks, they will tell you: Goods are traded, but services are consumed and produced in the same place.

And you cannot export a haircut. But we are coming close to exporting a haircut, the appointment part. What kind of haircut do you want?

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Which barber do you want? All those things can and will be done by a call center far away. As we ended our conversation, I asked Rao what he is up to next. He was full of energy. He told me he'd been talking to an Israeli company that is making some big advances in compression technology to allow for easier, better transfers of CAT scans via the Internet so you can quickly get a second opinion from a doctor half a world away.

A few weeks after I spoke with Rao, the following e-mail arrived from Bill Brody, the president of Johns Hopkins University, whom I had just interviewed for this book: Dear Tom, I am speaking at a Hopkins continuing education medical meeting for radiologists I used to be a radiologist I came upon a very fascinating situation that I thought might interest you.

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I have just learned that in many small and some medium-size hospitals in the US, radiologists are outsourcing reading of CAT scans to doctors in India and Australia!!! Most of this evidently occurs at night and maybe weekends when the radiologists do not have sufficient staffing to provide in-hospital coverage.

The advantage is that it is daytime in Australia or India when it is nighttime here-so after-hours coverage becomes more readily done by shipping the images across the globe. Since CAT and MRI images are already in digital format and available on a network with a standardized protocol, it is no problem to view the images anywhere in the world I assume that the radiologists on the other end. must have trained in [the] US and acquired the appropriate licenses and credentials. The groups abroad that provide these after-hours readings are called "Nighthawks" by the American radiologists that employ them.

Best, Bill Thank goodness I'm a journalist and not an accountant or a radiologist. There will be no outsourcing for me-even if some of my readers wish my column could be shipped off to North Korea.

At least that's what I thought. Then I heard about the Reuters operation in India. I didn't have time to visit the Reuters office in Bangalore, but I was able to get hold of Tom Glocer, the CEO of Reuters, to hear what he was doing. Glocer is a pioneer in the outsourcing of elements of the news supply chain. With 2, journalists around the world, in bureaus, serving a market including investment bankers, derivatives traders, stockbrokers, newspapers, radio, television, and Internet outlets, Reuters has always had a very complex audience to satisfy.

After the dot-com bust, though, when many of its customers became very cost-conscious, Reuters started asking itself, for reasons of both cost and efficiency: Where do we actually need our people to be located to feed our global news supply chain?

And can we actually disaggregate the work of a journalist and keep part in London and New York and shift part to India? ??Bill,??????????????????????????????-??????????????????????????????????????????,?????????????Bangalore??????,??????Tom Glocer,??????,?????????Glocer?????????????????????????????????????,????????????????????????????????????,???????????????????dot-com bust??,??????????????,?????????,??????????:???????????????????????????????????????????????????????????.

Glocer started by looking at the most basic bread-and-butter function Reuters provides, which is breaking news about company earnings and related business developments, every second of every day. We just need to get the basic news up as fast as possible. The flash should be out in seconds after the company releases, and the table [showing the recent history of quarterly earnings] a few seconds later. Those sorts of earnings flashes are to the news business what vanilla is to the ice cream business-a basic commodity that actually can be made anywhere in the flat world.

The real value-added knowledge work happens in the next five minutes. That is when you need a real journalist who knows how to get a comment from the company, a comment from the top two analysts in the field, and even some word from competitors to put the earnings report in perspective. The dot-com bust and the flattening of the world forced Glocer to rethink how Reuters delivered news-whether it could disaggregate the functions of a journalist and ship the low-value-added functions to India.

His primary goal was to reduce the overlap Reuters payroll, while preserving as many good journalism jobs as possible.

We said, 'Let's let them just do the flash headlines and the tables and whatever else we can get them to do in Bangalore. These new Indian hires had accounting backgrounds and were trained by Reuters, but they were paid standard local wages and vacation and health benefits.

When a company puts out its earnings, one of the first things it does is hand it to the wires-Reuters, Dow Jones, and Bloomberg-for distribution. Bangalore is one of the most wired places in the world, and although there's a slight delay-one second or less-in getting the information over there, it turns out you can just as easily sit in Bangalore and get the electronic version of a press release and turn it into a story as you can in London or New York.

While economics and the flattening of the world have pushed Reuters down this path, Glocer has tried to make a virtue of necessity. Do you reach your life's fulfillment by turning press releases into boxes on the screen, or by doing the analysis?

Obviously, it is the latter.

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Outsourcing news bulletins to India also allows Reuters to extend the breadth of its reporting to more small-cap companies, companies it was not cost-efficient for Reuters to follow before with higher-paid journalists in New York. But with lower-wage Indian reporters, who can be hired in large numbers for the cost of one reporter in New York, it can now do that from Bangalore. By the summer ofReuters had grown its Bangalore content operation to three hundred staff, aiming eventually for a total of fifteen hundred.

Some of those are Reuters veterans sent out to train the Indian teams, some are reporters filing earnings flashes, but most are journalists doing slightly more specialized data analysis-number crunching-for securities offerings.

In the wake of New York State Attorney General Eliot Spitzer's investigations into Wall Street practices, following several scandals, investment banking and stockbrokerage have had to be distinctly separated-so that analysts will stop hyping companies in order to get their investment banking.

But as a result, the big Wall Street investment firms have had to sharply reduce the cost of their market research, all of which has to be paid for now by their brokerage departments alone.

And this created a great incentive for them to outsource some of this analytical work to places like Bangalore. Reuters also recently opened a software development center in Bangkok because it turned out to be a good place to recruit developers who had been overlooked by all the Western companies vying for talent in Bangalore. I find myself torn by this trend. Having started my career as a wire service reporter with United Press International, I have enormous sympathy with wire service reporters and the pressures, both professional and financial, under which they toil.

But UPI might still be thriving today as a wire service, which it is not, if it had been able to outsource some of its lower-end business when I started as a reporter in London twenty-five years ago. The Reuters staff, he said, understand that this is being done so that the company can survive and then thrive again.

At the same time, said Glocer, "these are sophisticated people out reporting. They see that our clients are doing the exact same things. They get the plot of the story. What is vital is to be honest with people about what we are doing and why and not sugarcoat the message. I firmly believe in the lesson of classical economists about moving work to where it can be done best. However, we must not ignore that in some cases, individual workers will not easily find new work.

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For them, retraining and an adequate social safety net are needed. In an effort to deal straight with the Reuters staff, David Schlesinger, who heads Reuters America, sent all editorial employees a memo, which included the following excerpt: Off-shoring with Obligation I grew up in New London, Connecticut, which in the 19th century was a major whaling center. In the 's and 70's the whales were long gone and the major employers in the region were connected with the military-not a surprise during the Vietnam era.

My classmates' parents worked at Electric Boat, the Navy and the Coast Guard. The peace dividend changed the region once again, and now it is best known for the great gambling casinos of Mohegan Sun and Foxwoods and for the pharmaceutical researchers of Pfizer. Jobs went; jobs were created. Skills went out of use; new skills were required. The region changed; people changed. New London, of course, was not unique. How many mill towns saw their mills close; how many shoe towns saw the shoe industry move elsewhere; how many towns that were once textile powerhouses now buy all their linens from China?

Change is hard. Change is hardest on those caught by surprise.

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Change is hardest on those who have difficulty changing too. But change is natural; change is not new; change is important. The current debate about off-shoring is dangerously hot. But the debate about work going to India, China and Mexico is actually no different from the debate once held about submarine work leaving New London or shoe work leaving Massachusetts or textile work leaving North Carolina. Work gets done where it can be done most effectively and efficiently.

That ultimately helps the New Londons, New Bedfords and New Yorks of this world even more than it helps the Bangalores and Shenzhens. It helps because it frees up people and capital to do different, more sophisticated work, and it helps because it gives an opportunity to produce the end product more cheaply, benefiting customers even as it helps the corporation.

It's certainly difficult for individuals to think about "their" work going away, being done thousands of miles away by someone earning thousands of dollars less per year.

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But it's time to think about the opportunity as well as the pain, just as it's time to think about the obligations of off-shoring as well as the opportunities. Every person, just as every corporation, must tend to his or her own economic destiny, just as our parents and grandparents in the mills, shoe shops and factories did. Do you know what an Indian call center sounds like? The call center is a cross between a co-ed college frat house and a phone bank raising money for the local public TV station.

There are several floors with rooms full of twenty-somethings- some twenty-five hundred in all-working the phones. Some are known as "outbound" operators, selling everything from credit cards to phone minutes. Others deal with "inbound" calls-everything from tracing lost luggage for U. and European airline passengers to solving computer problems for confused American consumers.

The calls are transferred here by satellite and undersea fiber-optic cable. Each vast floor of a call center consists of clusters of cubicles. The young people work in little teams under the banner of the company whose phone support they are providing. So one corner might be the Dell group, another might be flying the flag of Microsoft.

Their working conditions look like those at your average insurance company. Most of the young people I interviewed give all or part of their salary to their parents. In fact, many of them have starting salaries that are higher than their parents' retiring salaries. For entry-level jobs into the global economy, these are about as good as it gets. I was wandering around the Microsoft section around six p. Bangalore time, when most of these young people start their workday to coincide with the dawn in America, when I asked a young Indian computer expert there a simple question: What was the record on the floor for the longest phone call to help some American who got lost in the maze of his or her own software?

Here is a small sample of what we heard that night while filming for Discovery Times. It should be read, if you can imagine this, in the voice of someone with an Indian accent trying to imitate an American or a Brit. Also imagine that no matter how rude, unhappy, irritated, or ornery the voices are on the other end of the line, these young Indians are incessantly and unfailingly polite. Woman call center operator: "Good afternoon, may I speak with.

Male call center operator: "Merchant services, this is Jerry, may I help you? The idea, of course, is to make their American or European customers feel more comfortable. Most of the young Indians I talked to about this were not offended but took it as an opportunity to have some fun.

While a few just opt for Susan or Bob, some really get creative. Woman operator in Bangalore speaking to an American: "My name is Ivy Timberwoods and I am calling you. Woman operator in Bangalore getting an American's identity number: "May I have the last four digits of your Social Security? Woman operator in Bangalore giving directions as though she were in Manhattan and looking out her window: "Yes, we have a branch on Seventy-fourth and Second Avenue, a branch at Fifty-fourth and Lexington.

Male operator in Bangalore selling a credit card he could never afford himself: "This card comes to you with one of the lowest APR.

Woman operator in Bangalore explaining to an American how she screwed up her checking account: "Check number six-six-five for eighty-one dollars and fifty-five cents. You will still be hit by the thirty-dollar charge. Am I clear? Woman operator in Bangalore after walking an American through a computer glitch: "Not a problem, Mr. Thank you for your time.

apologise, but

Take care. Woman operator in Bangalore after someone has just slammed down the phone on her: "Hello? Woman operator in Bangalore apologizing for calling someone in America too early:"This is just a courtesy call, I'll call back later in the evening. Male operator in Bangalore trying desperately to sell an airline credit card to someone in America who doesn't seem to want one: "Is that because you have too many credit cards, or you don't like flying, Mrs. Woman operator in Bangalore trying to talk an American out of her computer crash: "Start switching between memory okay and memory test.

Male operator in Bangalore doing the same thing: "All right, then, let's just punch in three and press Enter. Woman operator in Bangalore trying to help an American who cannot stand being on the help line another second: "Yes, ma'am, I do understand that you are in a hurry right now. I am just trying to help you out. Woman operator in Bangalore getting another phone slammed down on her: "Yes, well, so what time would be goo.

Same woman operator in Bangalore getting another phone slammed down on her: "Why, Mrs. Kent, it's not a Same woman operator in Bangalore getting another phone slammed down on her: "As a safety back.

Same woman operator in Bangalore looking up from her phone: "I definitely have a bad. Woman operator in Bangalore trying to help an American woman with a computer problem that she has never heard before: "What is the problem with this machine, ma'am? The monitor is burning? There are currently aboutIndians answering phones from all over the world or dialing out to solicit people for credit cards or cell phone bargains or overdue bills. These call center jobs are low-wage, low-prestige jobs in America, but when shifted to India they become high-wage, high-prestige jobs.

They would call in because they had lost their wallet or just to talk to somebody. I'm like, 'Okay, all right, maybe you should look under the bed [for your wallet] or where do you normally keep it,' and she's like, 'Okay, thank you so much for helping.

She had traveled two connecting flights and she lost her bag and in the bag was her daughter's wedding gown and wedding ring and I felt so sad for her and there was nothing I could do. I had no information.

I want my bag now! We are supposed to tell the truth, [so] we tell them India. Some thought it was Indiana, not India! Some did not know where India is. I said it is the country next to Pakistan. Although the great majority of the calls are rather routine and dull, competition for these jobs is fierce-not only because they pay well, but because you can work at night and go to school during part of the day, so they are stepping-stones toward a higher standard of living.

We also provide transportation, lunch, and dinner at no extra cost. We provide life insurance, medical insurance for the entire family- and other benefits.

Everyone is also entitled to performance bonuses that allow them to earn, in certain cases, the equivalent of percent of their base salary.

We sponsor an MBA program for consistent performers [with] full-day classes over the weekend. Everyone works eight hours a day, five days a week, with two fifteen-minute breaks and an hour off for lunch or dinner. Here is a snippet from a recruiting session for call center operators at a women's college in Bangalore: Recruiter 1: "Good morning, girls. The primary clients that we are recruiting [for] today are Honeywell. And also for America Online. The young women-dozens of them-then all lined up with their application forms and waited to be interviewed by a recruiter at a wooden table.

Here is what some of the interviews sounded like:. Applicant 1: "It should be based on accounts, then, where I can grow, I can grow in my career. Recruiter 1: "You have to be more confident about yourself when you're speaking. You're very nervous. I want you to work a little on that and then get in touch with us. Recruiter 2 to another applicant: "Tell me something about yourself. Applicant 2: "I have passed my SSC with distinction.

Second P also with distinction. And I also hold a 70 percent aggregate in previous two years. Recruiter 2: "Go a little slow. Don't be nervous. Be cool. The next step for those applicants who are hired at a call center is the training program, which they are paid to attend.

It combines learning how to handle the specific processes for the company whose calls they will be taking or making, and attending something called "accent neutralization class. It's pretty bizarre to watch. The class I sat in on was being trained to speak in a neutral middle-American accent. The students were asked to read over and over a single phonetic paragraph designed to teach them how to soften their r's and to roll their r's.

Their teacher, a charming eight-months-pregnant young woman dressed in a traditional Indian sari, moved seamlessly among British, American, and Canadian accents as she demonstrated reading a paragraph designed to highlight phonetics. She said to the class, "Remember the first day I told you that the Americans flap the 'tuh' sound? You know, it sounds like an almost 'duh' sound-not crisp and clear like the British. So I would not say"-here she was crisp and sharp-'"Betty bought a bit of better butter' or 'Insert a quarter in the meter.

All right? A bottle of bottled water held thirty little turtles. It didn't matter that each turtle had to rattle a metal ladle in order to get a little bit of noodles. Each member of the class then took a turn trying to say this tongue twister in an American accent. Some of them got it on the first try, and others, well, let's just say that you wouldn't think they were in Kansas City if they answered your call to Delta's lost-luggage number.

After listening to them stumble through this phonetics lesson for half an hour, I asked the teacher if she would like me to give them an authentic version-since I'm originally from Minnesota, smack in the Midwest, and still speak like someone out of the movie Fargo.

Absolutely, she said. So I read the following paragraph: "A bottle of bottled water held thirty little turtles. It didn't matter that each turtle had to rattle a metal ladle in order to get a little bit of noodles, a total turtle delicacy.

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The problem was that there were many turtle battles for less than oodles of noodles. Every time they thought about grappling with the haggler turtles their little turtle minds boggled and they only caught a little bit of noodles. The class responded enthusiastically. It was the first time I ever got an ovation for speaking Minnesotan. On the surface, there is something unappealing about the idea of inducing other people to flatten their accents in order to compete in a flatter world.

But before you disparage it, you have to taste just how hungry these kids are to escape the lower end of the middle class and move up. If a little accent modification is the price they have to pay to jump a rung of the ladder, then so be it-they say.

You work in the day, and then the night, and then the next morning. It is the tension of success. They are dealing with the challenges of success, of high-pressure living. It is not the challenge of worrying about whether they would have a challenge. That was certainly the sense I got from talking to a lot of the call center operators on the floor. Like any explosion of modernity, outsourcing is challenging traditional norms and ways of life. But educated Indians have been held back so many years by both poverty and a socialist bureaucracy that many of them seem more than ready to put up with the hours.

And needless to say, it is much easier and more satisfying for them to work hard in Bangalore than to pack up and try to make a new start in America. In the flat world they can stay in India, make a decent salary, and not have to be away from families, friends, food, and culture.

At the end of the day, these new jobs actually allow them to be more Indian. But I couldn't go because I couldn't afford it. I didn't have the money for it. Now I can, [but] I see a whole lot of American industry has come into Bangalore and I don't really need to go there. I can work for a multinational sitting right here.

apologise, but

So I still get my rice and sam-bar [a traditional Indian dish], which I eat. I don't need to, you know, learn to eat coleslaw and cold beef. I still continue with my Indian food and I still work for a multinational.

Why should I go to America? The chips are designed by Intel.

The phones are from Lucent. The air-conditioning is by Carrier, and even the bottled water is by Coke. So even with the outsourcing of some service jobs from the United States to India, India's growing economy is creating a demand for many more American goods and services. What goes around, comes around. Nine years ago, when Japan was beating America's brains out in the auto industry, I wrote a column about playing the computer geography game Where in the World is Carmen Sandiego? with my nine-year-old daughter, Orly.

I was trying to help her by giving her a clue suggesting that Carmen had gone to Detroit, so I asked her, "Where are cars made?

Well, I was reminded of that story while visiting Global Edge, an Indian software design firm in Bangalore. The company's marketing manager,told me that he had just made a cold call to the VP for engineering of a U. company, trying to drum up business.

As soon as Mr. Rao introduced himself as calling from an Indian software firm, the U. executive said to him, "Namaste," a common Hindi greeting. Said Mr. Rao, "A few years ago nobody in America wanted to talk to us. Now they are eager. So now I wonder: If I have a granddaughter one day, and I tell her I'm going to India, will she say, "Grandpa, is that where software comes from?

opinion already

No, not yet, honey. Every new product-from software to widgets-goes through a cycle that begins with basic research, then applied research, then incubation, then development, then testing, then manufacturing, then deployment, then support, then continuation engineering in order to add improvements. Each of these phases is specialized and unique, and neither India nor China nor Russia has a critical mass of talent that can handle the whole product cycle for a big American multinational.

But these countries are steadily developing their reseach and development capabilities to handle more and more of these phases. As that continues, we really will see the beginning of what Satyam Cherukuri, of Sarnoff, an American research and development firm, has called "the globalization of innovation" and an end to the old model of a single American or European multinational handling all the elements of the development product cycle from its own resources.

More and more American and European companies are outsourcing significant research and development tasks to India, Russia, and China. According to the information technology office of the state government in Karnataka, where Bangalore is located, Indian units of Cisco Systems, Intel, IBM, Texas Instruments, and GE have already filed 1, patent applications with the U.

Patent Office. Texas Instruments alone has had U. patents awarded to its Indian operation. Welch Technology Centre in Bangalore, engineers are developing new ideas for aircraft engines, transport systems and plastics. GE now even sends non-Indians to Bangalore.

Vivek Paul is the president of Wipro Technologies, another of the elite Indian technology companies, but he is based in Silicon Valley to be close to Wipro's American customers. Before coming to Wipro, Paul managed GE's CT scanner business out of Milwaukee.

At the time he had a French colleague who managed GE's power generator business for the scanners out of France. I told Vivek that I love hearing an Indian who used to head up GE's CT business in Milwaukee but now runs Wipro's consulting business in Silicon Valley tell me about his former French colleague who has moved to Bangalore to work for GE. That is a flat world. Every time I think I have found the last, most obscure job that could be outsourced to Bangalore, I discover a new one.

My friend Vivek Kulkarni used to head the government office in Bangalore responsible for attracting high technology global investment. After stepping down from that post inhe started a company called B2K, with a division called Brickwork, which offers busy global executives their own personal assistant in India.

Say you are running a company and you have been asked to give a speech and a PowerPoint presentation in two days. Your "remote executive assistant" in India, provided by Brickwork, will do all the research for you, create the PowerPoint presentation, and e-mail the whole thing to you overnight so that it is on your desk the day you have to deliver it.

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