[kictanet] Yawe for Post Master General

Fri Nov 12 10:03:49 EAT 2010

Yawe,

That will be excellent. I am willing to bring on board my expertise in the BPM & Six Sigma and set a precedence on how non-performing agencies in government can be streamlined without spending a fortune to achieve that. 

Edwin

From: kictanet-bounces+eonchari=lynxbits.com at lists.kictanet.or.ke [mailto:kictanet-bounces+eonchari=lynxbits.com at lists.kictanet.or.ke] On Behalf Of robert yawe
Sent: Friday, November 12, 2010 9:55 AM
To: Edwin
Cc: KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] Yawe for Post Master General

Edwin,

A general does not go to battle alone, I will soon to inviting expression of interest to join the battle of de-sedating PCK.

Regards

Robert Yawe
KAY System Technologies Ltd
Phoenix House, 6th Floor
P O Box 55806 Nairobi, 00200
Kenya

Tel: +254722511225, +254202010696

  _____  

From: Edwin Onchari <eonchari at lynxbits.com>
To: robert yawe <robertyawe at yahoo.co.uk>
Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
Sent: Fri, 12 November, 2010 9:42:48
Subject: RE: [kictanet] Yawe for Post Master General

I think that the issues at Posta are here to say unless we use modern methodologies of understanding improving organizational performance such as Business Process Modeling & Analysis; Six Sigma, etc. Using the above two for instance, one can simulate and understand the impact of changing one variable versus another in a risk free environment and in a cost effective manner. Yawe, when you take over, surround yourself with a team that will be able to improve the performance of Posta right to the basic activity levels.

Kind regards,

Edwin

From: kictanet-bounces+eonchari=lynxbits.com at lists.kictanet.or.ke [mailto:kictanet-bounces+eonchari=lynxbits.com at lists.kictanet.or.ke] On Behalf Of robert yawe
Sent: Friday, November 12, 2010 9:21 AM
To: Edwin
Cc: KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] Yawe for Post Master General

Ndemo,

As I had indicated legacy issues are what truly ail PCK and by hiring legacy thinkers to run the corporation the problem will continue to seem insurmountable.

I do not see how the level of education of the staff and the pension fund issue justifies not putting a change leader at the helm.  When the none graduate staff where being employed was when our Universities only produced 3,000 graduates, the work they where employed for only required that level of education of which is still the case.  

The organisation needs to have its past human resource managers charged with will-full failure to carry out their duties.  PCK had a training school, what and who was it training if not the staff?  A large number of staff is not an inherently bad thing, the problem is a management who cannot make use of the human resource to meet the vision, mission and objectives of the organisation.  

Having a 40 foot truck is not a bad thing, but using it to carry 10 foot containers is criminal. Which is why Hon. Kimunya's directive to wipe out 14 seater matatus from public transport all over the country is fool hardy, we need to stop nationalising Nairobi issues.  We need to find specific solutions for specific problems, as is said "give a man a hammer and everything becomes a nail"

The issue of Telkom should actually be a case study for a University that is forward looking to see if the direction that the government took in its restructuring approach was really the most appropriate, I believe expediency and world bank funds did not allow for a thorough analysis of the problem and solution to be carried out.

I have friends and acquittance's who where hired as telegraph operators when they joined KPTC over the years many had gone for additional training and had been relocated to new areas yet their staff records still indicated that they where telegraph operators, a position that died even before KPTC.  

So when the foreign expert arrived he asked whether Telkom provided telegraphic services, when he was answered no he proceeded to strike off the entire staff count in the department never taking the time to even walk to the telegraphic room to see if there was occupied with pot bellied tea drinking idlers. Even if they where there a method of redeployment could have been designed.  This was an ideal team to have 

been used to setup the governments call centre.

So when the list of those to be retrenched  included some figure of around 1,500 telegraph operators it was clear that an injustice was being carried out.  

In the same breath we need to be careful not be retrench form four level parcel sorting and delivery staff to replace them with degree holders as this will be working counter to the tenants of the 2030 agenda.  Let us not take the high road and punish those who were unfortunate enough to have grown up between the Kenyatta on Kibaki free education periods.  Based on your statement Doctor Ndemo, many of us without advanced degrees might as well begin to relocate from the City as it might soon be a prerequisite for entering the CBD.

The issues you have raised in no way explain why I would not be an ideal candidate for Post Master General of the Postal Corporation of Kenya, as a director of the corporation and the direct responsible government person it is within your mandate to make such a recommendation.

As we move towards a more accountable mode of governance it is only prudent that the appointments to some of this positions need to be open to public scrutiny and recommendations.  It is unfortunate yet again that many list members are avoiding this issue, it is more than my wanting to become PMG it transcends to how you will all go out to elect governors, senators and other leaders of the devolved government.

Let us not leave the decisions to the political elite or the bureaucrats to make decisions that will have a lasting effect on your lives, here is an opportunity to taste responsibility and power on issues that affect you. 

Agusta and others in the e-commerce realm, without an efficient and reliable delivery network your sites will remain with a limited reach and potential, it is in your interest to have the person of the helm of PCK be one who understands and appreciates your needs.

As Amstrong said as he walked onto the surface of the moon "That's one small step for [a] man, one giant leap for mankind"

Regards

Robert Yawe
KAY System Technologies Ltd
Phoenix House, 6th Floor
P O Box 55806 Nairobi, 00200
Kenya

Tel: +254722511225, +254202010696

  _____  

From: "bitange at jambo.co.ke" <bitange at jambo.co.ke>
To: robertyawe at yahoo.co.uk
Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
Sent: Thu, 11 November, 2010 16:44:39
Subject: Re: [kictanet] Yawe for Post Master General

Njeri/Yawe,
Under normal circumstances, the strategies as laid down by Yawe, would
greatly boost PCK.  I also used to think the same.  The legacy problems
are far greater than meets the eye.  For a start the pension program is
underfunded any any attempt you make to reform without adequate funding,
you aggrevate the situation.

Yet you need to drastically retrench if re-engineering the organization is
to work.  A good example was TKL which now is out of the woods.  Prior to
reorganization of TKL, there were more than 19,000 employees of which only
450 had college education.  More than 9,000 had CPE and below education
and of its 1,200 fleet of vehicles, there were more than 3,000 drivers. 
Even if you were the smartest, it would be very difficult to retrain or
re-engineer such a work force.  It cost the state more than $1 billion to
correct the situation.

It is not all lost as soon there will sufficient resources to inject new
optimism in the organization.  A number of the proposals made by Yawe have
been considered and some are being implemented.

Regards

Ndemo.

>
> It cannot be said better and mind you they know this conversation only
> to well. Over five years ago I was engaged in a discussion that
> highlighted some of these ideas.
>
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> On Nov 11, 2010, at 8:51, robert yawe <robertyawe at yahoo.co.uk> wrote:
>
>> Hi Jane,
>>
>> Thank you for the challenge for me to put forth my vision when I
>> become post master general (PMG) of postal corporation of Kenya (PCK).
>>
>> PCK like any other postal service in the world is the hub of any
>> town or village, it is the reference point for the area
>> unfortunately we have relegated our postal service to the edge we
>> need to bring it back to the centre.  There is no organisation be it
>> private or public that has more counter space than PCK, there are
>> over 900 outlets equitably distributed across the country.
>>
>> I will improve the level and range of services that will be
>> available at the post offices country wide.  With the passing of the
>> law allowing banks to implement an agency model Posta's
>> opportunities have just sky rocketed, your post office will now be
>> your bank.
>>
>> The post office is where we mere mortals have our issues sorted out
>> from paying bills (utility, insurance, rent etc) it where you make
>> your copies, bind documents, fill applications, replace lost
>> documents, place advertisements for print and electronic media,
>> collect mail, do research and collect information.
>>
>> The banking hall space can be rented to insurance companies, banks,
>> colleges and anyone else who currently sets up camp on the street.
>> The same institutions can make their marketing material available at
>> the various post offices.
>>
>> Partner with Kenswitch and Pesa Point to allow them to install ATM's
>> in all the post offices and with time Posta can purchase their own
>> ATMs and add them to the existing networks.  Due the remote
>> locations of some of this post offices Posta can load the ATMs and
>> earn revenue.
>>
>> My proposal to the data infrastructure providers would be to
>> terminate their fibre optic cable at the various post office
>> locations countrywide and use them as points of presence, to the
>> best of my knowledge the former telex infrastructure belongs to
>> postal thus way-leave issues would be resolved at district level.
>>
>> PCK is the hub not the spoke in the successful implementation of an
>> e-commerce environment, less than 10% of items that one needs to buy
>> online can be delivered electronically all the rest must be
>> delivered physically.  The only person with the reach and acceptance
>> to do this without widening the divide is PCK, however much  you
>> urban dwellers think otherwise you only make up 10% of the countries
>> population which is why many of us think PCK is irrelevant.
>>
>> I belief there might be some policy and legislative issues that will
>> need to be resolved immediately which stop Posta from taking
>> advantage of the new opportunities that have become available.
>> There must be a very stupid reason why Posta do not sell airtime or
>> become distributors for all the mobile providers, this huddle must
>> be removed immediately.
>>
>> We have kept discussing the issue of digital villages, why is it
>> that KICT Board cannot walk across to PCK offices, no need to even
>> cross a road, and implement them within the post office?  Posta can
>> act as the demonstration digital village and also as the training
>> location for those interested in replicating the model.  The removal
>> of whichever huddles exist that prevent this from being implemented
>> immediately will be my deliverables for my first 100 days in office.
>>
>> Please note that none of the issues I intend to implement within the
>> first year in office requires any cash outlay from PCK which is a
>> clear indication that someone is refusing to play politics to unbind
>> PCK to be able to deliver service to the public.  You as tax payers
>> need to realise that sedating of PCK is being done with your hard
>> earned money.
>>
>> After this is in place PCK will be in a position to grow in leaps
>> and bounds to look at "bling" issues like doing door to door
>> delivery for 50,000 of Nairobi's elite residents which will be a
>> nightmare as most of us change email addresses without notifying
>> others or setting autoforwards.  Rebranding, repainting and
>> segmenting the delivery channels to segment the haves, wannabes and
>> general public.
>>
>> This is my approach to accelerate PCK when I am appointed PMG, I
>> will not use the term restart as PCK is neither comatose or dead its
>> is only sluggish due to the excessive sedation by those who should
>> know better.
>>
>> Robert Yawe
>> KAY System Technologies Ltd
>> Phoenix House, 6th Floor
>> P O Box 55806 Nairobi, 00200
>> Kenya
>>
>> Tel: +254722511225, +254202010696
>>
>>
>> From: Jane Kagiri <kagirijane at yahoo.com>
>> To: robertyawe at yahoo.co.uk
>> Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
>> Sent: Tue, 9 November, 2010 20:02:38
>> Subject: Re: [kictanet] Yawe for Post Master General
>>
>> Listers,
>>
>> I totally agree with Robert that academic qualifications do not
>> necessarily translate into the required experience.
>>
>> However from his list of personalities who have excelled in
>> propelling their organizations to great heights despite their not so
>> high academic qualifications, the one thing they all have in common
>> is that they each had a vision to make their respective
>> organizations what they are today.
>>
>> Robert,please share with us your vision on how you would revive the
>> ailing PCK.
>>
>> Jane Kagiri.
>>
>> From: "kictanet-request at lists.kictanet.or.ke"
>> <kictanet-request at lists.kictanet.or.ke
>> >
>> To: Jane Kagiri <kagirijane at yahoo.com>
>> Sent: Mon, November 8, 2010 3:21:28 PM
>> Subject: kictanet Digest, Vol 42, Issue 22
>>
>> Send kictanet mailing list submissions to
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>>
>> Today's Topics:
>>
>>  1. Re: Yawe for Post Master General (Rad!)
>>  2. Re: Yawe for Post Master General (Eugene Lidede (Synergy))
>>  3. Outsourcing, a perspective following Obama's India visit
>>      (Paul Kukubo ICT Board)
>>
>>
>> ----------------------------------------------------------------------
>>
>> Message: 1
>> Date: Mon, 8 Nov 2010 14:44:56 +0300
>> From: "Rad!" <conradakunga at gmail.com>
>> To: robert yawe <robertyawe at yahoo.co.uk>
>> Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
>> Subject: Re: [kictanet] Yawe for Post Master General
>> Message-ID:
>>    <AANLkTinTYzGq3+mt-Gx5R_jsmvLjEYLyO2bfbe3D0gPS at mail.gmail.com>
>> Content-Type: text/plain; charset="iso-8859-1"
>>
>> Add to that list
>>
>>  - Richard Branson
>>  - Larry Page
>>  - Ralph Lauren
>>  - Steve Jobs
>>
>> Which is not to say a university education is useless, but it should
>> not be
>> the only consideration.
>>
>> We could also look at what have the candidates achieved prior to
>> coming to
>> PCK. What businesses & institutions have they nurtured/grown?
>>
>> On Mon, Nov 8, 2010 at 2:38 PM, robert yawe <robertyawe at yahoo.co.uk>
>> wrote:
>>
>> > Hi,
>> >
>> > Please read the profile of Micheal Joseph & his successor, in
>> addition
>> > would you have hired any of the following fellows;
>> >
>> > 1.  Bill Gates - University drop out
>> > 2.  Micheal Dell - University drop out
>> > 3.  James Mwangi - CPAK
>> > 4.  Alexander Graham Bell - Grade 5 dropout
>> > 5.  Njenga Karume - Unknown
>> > 6.  Sir Richard Branson - O'Level
>> >
>> >
>> > I do not want to belittle paper qualifications but they work when
>> you are
>> > looking for a fellow to maintain the status quo which is something
>> we
>> > definitely do not want to do with PCK.  No college in the world
>> can prepare
>> > you on how to turn around an organisation in the state that PCK is
>> in right
>> > now.
>> >
>> > If you are looking for relevant experience then you will need to
>> get an
>> > expatriate as the only national postal corporation in Kenya is
>> PCK. What is
>> > Major Ali's qualification that makes him an ideal candidate as the
>> PMG?
>> >
>> > If you where sleeping & was then awaken by a hissing sound on
>> turning on
>> > the light you see a snake what would you do?
>> >
>> > 1.  Call KWS to send a team of experts to take capture the snake
>> > 2.  Call the Police
>> > 3.  Call KSPCA and ask for instruction on how to safely deal with
>> the snake
>> > 4.  Pick the nearest available to through at it
>> >
>> > Regards
>> >
>> > Robert Yawe
>> > KAY System Technologies Ltd
>> > Phoenix House, 6th Floor
>> > P O Box 55806 Nairobi, 00200
>> > Kenya
>> >
>> > Tel: +254722511225, +254202010696
>> >
>> >
>> > ------------------------------
>> > *From:* Sam Aguyo <saguyo at yahoo.com>
>> > *To:* robert yawe <robertyawe at yahoo.co.uk>
>> >
>> > *Cc:* KICTAnet ICT Policy Discussions
>> <kictanet at lists.kictanet.or.ke>
>> > *Sent:* Mon, 8 November, 2010 13:31:59
>> >
>> > *Subject:* Re: [kictanet] Yawe for Post Master General
>> >
>> > Robert,
>> >
>> > It is good to offer yourself to be elected the new post master
>> general. If
>> > i was the appointing authority, i would demand to know what your
>> > qualifications are and what measures you would use to turn around
>> the
>> > supposed limping organisation. I would ask you your qualifications
>> because
>> > it would inform me whether you have the fundamental background and
>> skills
>> > required to deliver the service.  I would look at both academic and
>> > professional experience to take the organisation forward.  This
>> also forms a
>> > criteria for selection acceptable to all, then we will not have
>> "ya wenyewe"
>> > etc.
>> >
>> > Regards,
>> >
>> > Sam
>> >
>> >
>> >
>> >
>> >
>> > _______________________________________________
>> > kictanet mailing list
>> > kictanet at lists.kictanet.or.ke
>> > http://lists.kictanet.or.ke/mailman/listinfo/kictanet
>> >
>> > This message was sent to: conradakunga at gmail.com
>> > Unsubscribe or change your options at
>> > http://lists.kictanet.or.ke/mailman/options/kictanet/conradakunga%40gmail.com
>> >
>> >
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>> ------------------------------
>>
>> Message: 2
>> Date: Mon, 8 Nov 2010 15:19:53 +0300
>> From: "Eugene Lidede \(Synergy\)" <eugene at synergy.co.ke>
>> To: <agostal at gmail.com>
>> Cc: 'KICTAnet ICT Policy Discussions' <kictanet at lists.kictanet.or.ke>
>> Subject: Re: [kictanet] Yawe for Post Master General
>> Message-ID: <[email protected]>
>> Content-Type: text/plain;    charset="iso-8859-1"
>>
>> Robert,
>>
>> With the sheer number of posts on this list and the diverse areas of
>> coverage, I should think you are already a "Post Master General".
>>
>> Agosta,
>>
>> If Upesi are doing something right, that?s is a good thing, but it
>> does not
>> mean others shouldn?t get into the fold of "doing something right".
>>
>> I would be interested to know if upesi folk can deliver my "goro
>> goro" of
>> maize meal and rose cocoa beans from upcountry on a monthly basis.
>> PCK does
>> it for me at less than 200/= for 5kg parcel (3-7 day delivery) or
>> (KES 350/=
>> for EMS following day delivery). My "ushago" is located at these
>> coordinates: 0.746041,35.127089 - there are no tarmac roads (so to
>> speak)
>> for over 70 km and electricity just "arrived" 2 weeks ago, but there
>> is a
>> functional post office (postal code 50235) that has been operational
>> longer
>> than I have been alive.
>>
>> At these low rates from PCK, and with a currently functional national
>> footprint, all that?s needed are new efficiencies and it will be
>> possible
>> for Upesi and others to build *country wide* ecommerce offerings
>> PAP, hence
>> the need for an ICT visionary at the helm of PCK. In my
>> understanding postal
>> services are a subset of ICT. What is lacking at PCK is a
>> repositioning to
>> take advantage of the T in ICT.
>>
>>
>> Regards
>>
>>
>> Eugene
>>
>>
>> -----Original Message-----
>> From: kictanet-bounces+eugene=synergy.co.ke at lists.kictanet.or.ke
>> [mailto:kictanet-bounces+eugene=synergy.co.ke at lists.kictanet.or.ke] On
>> Behalf Of Agosta Liko
>> Sent: Monday, November 08, 2010 1:12 PM
>> To: Eugene Lidede
>> Cc: KICTAnet ICT Policy Discussions
>> Subject: Re: [kictanet] Yawe for Post Master General
>>
>> Robert
>>
>> right now, local ecommerce deliveries are being done by piki piki guys
>> and similar courier services pretty well and they have shown a
>> willingness to integrate software systems
>>
>> companies like http://www.upesi.com/ look positioned to champion the
>> ecommerce delivery space Kenya wide, all merchants have to do is give
>> them packages and they take care of the rest
>>
>> so maybe ecommerce will be off the table
>>
>> just saying :)
>>
>> On Mon, Nov 8, 2010 at 12:39 PM, robert yawe
>> <robertyawe at yahoo.co.uk> wrote:
>> > Hi,
>> > Will know what needs to be done to get PCK back on track, what we
>> need is
>> to
>> > get on the inside and implement this issues.
>> > The sooner I can get myself appointed as PMG of PCK then sooner we
>> can
>> truly
>> > implement e-commerce.
>> > Regards
>> >
>> > Robert Yawe
>> > KAY System Technologies Ltd
>> > Phoenix House, 6th Floor
>> > P O Box 55806 Nairobi, 00200
>> > Kenya
>> >
>> > Tel: +254722511225, +254202010696
>> >
>> > ________________________________
>> > From: Rad! <conradakunga at gmail.com>
>> > To: robertyawe at yahoo.co.uk
>> > Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
>> > Sent: Mon, 8 November, 2010 11:20:56
>> > Subject: Re: [kictanet] Yawe for Post Master General
>> >
>> > This is where Posta needs to think outside the box.
>> > Trying to compete with email (official correspondence e.g. bills,
>> > statements), facebook (personal correspondence e.g. letters,
>> penpals etc)
>> > and MPesa (no more mailing of cheques) is folly.
>> > To re-invent itself Posta needs to realize that the one thing you
>> cannot
>> > send via email is physical goods.
>> > How many businesses are based on a model of physical goods?
>> > Enter Posta. There is a significant opportunity in delivering
>> goods from A
>> > to B. This is very difficult because finding A and B is
>> problematic. We
>> > cannot depend on a system of landmarks to describe locations of
>> businesses
>> > and houses.?The problem is thanks to lethargic officials in charge
>> of
>> > planning urbanization across Kenya is by and large unplanned. This
>> bell
>> > cannot be un-rung.?Some of these landmarks have deeply historical
>> knowledge.
>> > For example the NOCK stage on Haile Selassie is still called Agip.
>> Others
>> > depend on other locations.
>> > Given that Posta has a good physical presence across Nairobi why
>> shouldn't
>> > they undertake their own initiative to map the physical location
>> of their
>> > customers? It would be folly to depend on City Councils more
>> preoccupied
>> in
>> > throwing chairs. In any case, Posta should be doing KYC anyway.
>> > This would yield valuable information that would not only aid in
>> their
>> > operations but can also be exposed to end users and consumers either
>> > directly or via some sort of API for courier companies to build
>> solutions
>> > around receipt and dispatch.
>> > Given also that Posta has a large fleet of vehicles and physical
>> presence
>> > across Kenya a model of physical delivery of goods is one they
>> should be
>> > able to easily step into and compete favourably with the likes of
>> DHL.
>> > In a nutshell this will yield the following opportunities
>> > - Fostering of an e-commerce industry in kenya with a closed buyer-
>> seller
>> > loop (that is currently very open,hindering the same)
>> > - Partnering with e-comerce businesses, a new revenue stream
>> > - Increased business in the parcel delivery & courier sector,
>> increased
>> > revenue stream
>> > - Enhanced productivity, since with mapped customers routes and
>> deliveries
>> > can be optimized, saving costs
>> > - Sale of data - other couriers and businesses can pay for access
>> to this
>> > data, a new revenue stream
>> > - Fostering development of B2B systems - with an API anyone can
>> access
>> this
>> > data programatically (for a fee) and use this platform to build
>> additional
>> > solutions, a new revenue stream
>> > Everyone is a winner!
>> > On Mon, Nov 8, 2010 at 10:56 AM, Odhiambo Washington
>> <odhiambo at gmail.com
>> >
>> > wrote:
>> >>
>> >>
>> >> On Mon, Nov 8, 2010 at 10:30 AM, Rad! <conradakunga at gmail.com>
>> wrote:
>> >>>
>> >>> If Posta was serious about remaining relevant they would grasp the
>> >>> opportunity to develop and run a physical addressing system for
>> Kenya.
>> >>
>> >>
>> >> @Rad!,
>> >> The physical addressing system: Isn't this the same thing that
>> Kanjo
>> >> already started, albeit so badly? If Kanjo's was the pilot
>> project for
>> >> Kenya, then I must say it's awful. It may  not be surprising that
>> some
>> >> officials from Kanjo went for overseas trips to learn how the
>> physical
>> >> addressing+Post Codes is supposed to be done, only to come and do
>> an
>> awful
>> >> one for Nairobi!
>> >> I think that "physical addressing == Post Codes", right? Can this
>> be done
>> >> by Posta without involving the Kanjo's of other towns in Kenya?
>> With the
>> >> poor infrastructure that we have in this country, I still wonder
>> how
>> Posta
>> >> would deliver mail to my rural home, when I cannot even drive there
>> myself,
>> >> because the govt expects me to build the roads I need to use!
>> >>
>> >>
>> >> --
>> >> Best regards,
>> >> Odhiambo WASHINGTON,
>> >> Nairobi,KE
>> >> +254733744121/+254722743223
>> >> _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
>> >> Damn!!
>> >>
>> >
>> >
>> >
>> > _______________________________________________
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>> ------------------------------
>>
>> Message: 3
>> Date: Mon, 8 Nov 2010 15:21:47 +0300
>> From: Paul Kukubo ICT Board <pkukubo at ict.go.ke>
>> To: "kictanet at lists.kictanet.or.ke" <kictanet at lists.kictanet.or.ke>
>> Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
>> Subject: [kictanet] Outsourcing, a perspective following Obama's India
>>    visit
>> Message-ID: <3A3A946B-3959-4960-9643-61DFBA74EF67 at ict.go.ke>
>> Content-Type: text/plain; charset="utf-8"
>>
>> Listers
>>
>> The following article appears in the Wall Street Journal. Two points
>> of note for our reflection upon as Kenya.
>>
>> 1. Labour supply shifting to small and medium sized businesses
>> globally. Kenyan talent providers can enhance their participation in
>> talent websites like freelancer.com to promote and sell their
>> services directly.
>> 2. On some services, India can deliver the project at a 10th of US
>> prices for the same quality. The India US dependency is very high
>> even among small businesses in the US which depend on Indian labour
>> to provide basic IT services. This is an opportunity for Kenya.
>>
>> Enjoy the read...
>>
>> The Obama Visit: An Outsourcer?s Perspective
>>
>> Article
>> Comments
>> INDIA REAL TIME HOME PAGE ?
>> EmailPrintPermalink
>>
>>
>>
>> + More
>> Text
>> By Arlene Chang
>>
>> Outsourcing has been a major political whipping boy between the U.S.
>> and India in recent months but U.S. President Barack Obama and
>> Indian Prime Minister Manmohan Singh both tried to quell the
>> controversy in remarks before the press Monday. Mr. Obama said
>> outsourcing was the subject of stereotyping in the U.S. which has to
>> be updated and Mr. Singh said India was not in the business of
>> stealing American jobs.
>>
>> Matt Barrie is chief executive of Freelancer.com, an online
>> marketplace that connects businesses looking to outsource work with
>> service providers, many of them in India. The site has 1.9 million
>> members. He talked to India Real Time?s Arlene Chang about his view
>> of the U.S., India and outsourcing. Here are edited excerpts.
>>
>>
>>
>> Freelancer.com
>> Matt Barrie, chief executive Freelancer.com
>> IRT: As head of one of the largest outsourcing websites, you must
>> have a view on outsourcing of jobs?
>>
>> Mr. Barrie: We were founded in 2004 and since then, our two primary
>> markets have been the U.S. and India ? expectedly. Of the employers
>> posting jobs, 90% of those jobs come from the U.S. and of the jobs
>> being completed 90% are done by Indians.
>>
>> I do not see this as Indians taking away jobs from the Americans or
>> outsourcing as being a bad thing.
>>
>> If anything, this has been a tremendously good exchange. You have
>> about 25 million small businesses in the U.S. and each of them needs
>> people to help run and sustain their businesses. But they may not
>> necessarily have the money or budget to do it through normal
>> channels. Here, the service providers, a majority of which in the
>> case of freelancer.com are Indians, are providing those businesses
>> with the services they want within their desired cost.
>>
>> IRT: Is it a stereotype in the U.S. that India takes away American
>> jobs?
>>
>> Mr. Barrie: It is a stereotype but the stereotype is actually
>> contradictory. Most of our members seeking services are small and
>> medium-sized businesses and each one of them needs to, for example,
>> get itself a website and maintain it. This need is not necessarily
>> met by the supply available within the U.S.
>>
>> Small businesses are always thinking of getting their things done
>> for a lesser cost, they need to be constantly cost effective. The
>> service providers on our website provide those services to them at a
>> fraction of the cost. This enables small and medium-sized companies
>> to cut costs, become more competitive, and thus helps them grow
>> their business ? all of which in turn helps the U.S. economy. As we
>> talk, there are a tremendous number of jobs being created in the
>> U.S. just, say, in internet businesses, whose back-office operations
>> are being supported by outsourced hires.
>>
>> IRT: What are the statistics for the outsourcing exchange on your
>> website?
>>
>> Mr. Barrie: Since we started in 2004, we have completed around
>> 850,000 projects and seen $67.41 million traded. Of the 1.9 million
>> users we have, 400,000 of them are from India and are service
>> providers. A similar number are service seekers from the U.S. The
>> average cost of a job through our website is less than $200. So, as
>> an example, if someone wants to build a website for their business
>> they would normally have to pay about $2,000 in the U.S. to get that
>> job done. On freelancer.com, we have people who do the job for $200.
>> That?s one tenth of the actual cost. The U.S. is the largest poster
>> of jobs for us and India has the largest pool of service providers,
>> but India is also a significant employer. After the U.S., U.K.,
>> Australia and Canada, it is India that posts the highest number of
>> jobs that need to be done.
>>
>> IRT: What is the future of the outsourcing industry globally?
>>
>> Mr. Barrie: I think the next five years are going to be extremely
>> interesting. Labor markets are always in flux and while the big
>> businesses are doing the bulk of trade, there is already a
>> fundamental shift in the amount and direction of labor supply.  A
>> huge amount of that labor supply is shifting to small and medium-
>> sized businesses globally and as that happens there is going to be a
>> revolution in places like India.
>>
>> If a person wants to start their own small business, all they have
>> to do is go online and get someone who can get up a website for them
>> and manage it ? all this done on a shoestring budget.
>>
>> With more such businesses coming into being, there will be more work
>> and the jobs not available previously will be out there. I think the
>> off-shoring of the work of small and medium-sized businesses is
>> going to provide an unparalleled opportunity for the U.S. and India,
>> helping U.S. businesses in being more competitive and helping
>> Indians get jobs that were not previously available.
>>
>> IRT: What do you make of President Obama?s statement in Mumbai
>> Saturday on there being a stereotype in the U.S. about outsourcing
>> to India?
>>
>> Mr. Barrie: I think a lot of what he said is rhetoric. He is in a
>> politically different situation now after having lost the mid-term
>> elections back home. I think he is pandering to the Indian-American
>> vote bank back home when he said that, when he goes back to the
>> U.S., he wants to be able to tell his countrymen that India has in
>> fact created 50,000 jobs for America.
>>
>>
>>
>> Ends
>>
>>
>>
>>
>>
>> Paul Kukubo
>>
>> CEO, Kenya ICT Board
>>
>>
>>
>> Sent from my iPad
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>>
>> End of kictanet Digest, Vol 42, Issue 22
>> ****************************************
>>
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