It is getting hard not to get discouraged

Today is day 10 of my due diligence effort on the state of call centers in the US, and it is getting very difficult to stay hopeful. I've spoken to entrepreneurs, politicians, lawyers, bankers, call center managers, and call center reps. Something that "jumps right off the page at you" is the complete lack of faith senior leaders have in the core workforce. When comparing India service workers with American services workers, the general consensus is that we (Americans) are under-educated, un-focused, and generally do not have the drive to succeed.

As an entrepreneur, I find it hard not to get outraged at something like this. It makes me want to change things, it makes me want to prove them wrong. However when you peel back the skin on that onion, they are consistently correct in the assumption. Why is this happening? Why is poker a career aspiration in the US? Entitlements. Government, state and local entitlements have truly formed a safety net in America, and many of my fellow countrymen have decided to take advantage of it.

We need less safety nets and more free markets. It seems that while we have been gleefully practicing the art and science of capitalism, we have simultaneously been undermining our workforce by getting them hooked on a socialist entitlement system. For the life of me I can not understand how this benefits us in the future. Look at the inner cities. The ONLY thing that works is free markets. Unfortunately, the largest free market in the inner city is drugs! Imagine what the person who organizes the intricate systems of runners, dealers, and enforcers that the drug trade plys could do if he/she were building a chain of auto supply stores. It surely isn't profit motive that should stop them. Running a multi-store chain is exceptionally profitable; much more profitable than the drug trade if you apply the risk premium of dying or going to jail!!!

It is this fundamental shift in perception that has to change. I advance that it is merely getting that drug dealer to realize the legitimate end to his/her organizational skills!!!

You can't legislate a living wage, you have to EARN it.

As I examine all the ways that US business could compete with Offshore BPO outsourcing, the one thing that keeps coming up is that American companies can't beat the pricing that Offshore providers can offer. Salaries of 20,000.00 per year are commonplace in nations that support offshoring. This makes stateside, labor for labor comparisons almost pointless. Clearly US business and Offshore outsourcers of business processes are taking advantage of the disparity between standards of living between two nations.

I think that right now, you are probably going.....duh..... However lets examine this trend. If you consider that there is a finite amount of wealth in the world, and that assets shift according to where free markets roam. The US is on the incorrect side of an ever-increasing curve. As countries that support Offshore outsourcing gain in terms of labor, wealth and market share, the opposite relationship must occur on the other side of the curve. This means that the US must prepare for deflation of wages in order to balance out the gap between nations.

So, when I see things like this It proves to me that politicians are not governing for our future. They are merely satiating the panicked crowd. The reality is that you can't legislate what the free market is creating. You can't just swipe a pen and balance the massive gap between the standard of living in India and the standard of living in the US. As long as the ability to exploit these two differences using the revolution of technology communications exists, it will continue to erode the ability for wages in the US to evolve. Forcing stores to support a living wage without chaining the economic landscape just means......Less jobs. As companies close stores in areas that require a living wage either through bankruptcy or intelligence.

Americans should fight offshore outsourcing

.....and I don't mean by endlessly complaining about politicians or crooked business people.

Why don't we COMPETE? We complain that we are losing thousands of middle and high tier service jobs to offshore concerns and I don't hear anyone tying to fight it! Why? Some say it is because we can NEVER compete with the wages people are willing to work for globally. But that just says that Americans are OVERPRICED! We say that about ourselves when we decide NOT to compete.

The answer is the combination of better, more innovative technology driving call center and BPO organizations combined with the active revitalization of inner city and low income areas. The truth is we can not count on the government to revitalize inner cities and low income areas. It is always the free market. Right now I see the same situation plaguing American inner cities and low income areas that was plaguing towns in India that were mired in the caste system.

It is five years later, and they are transforming while we are arguably getting worse. But that is when the Free Market comes in. There will be a point where offshore economies will begin to expand and their citizens will enjoy an ever increasing standard of living. Which is when the balance of opportunity will shift back American ideas and technology. The time to fight back is coming......I for one am going to be ready.

How to deal with a Venture Partner

Maybe it is just the type of blogs I read, but for some reason, everyone wants to tell you how to deal with a Venture Capitalist. I see things like "The Top Ten Things when talking to VC." or other "lists" that seems to suggeest that someone actually knows how to manipulate a VC into liking your idea. I have to say it seems much more organic than that.

I've seen people get funded, and I've seen a lot more NOT get funded. The ones that actually DO move through the maze far enough to GET funded seem to be getting there not on some swift sales pitch, and not even on a good cash flow model. They just "click" with the overall tone and tenure of the firm doing the funding. It seems almost magical.

So, I would say, if you have to read "lists" to get funded. Your idea needs more work and isn't immediately compelling.

Back and Blogging....Looking for the next Gig.

Nice to be back Blogging.

I took a bit of a vacation from blogging as I built my latest company, ReadyTechs (http://www.readytechs.com/). I've recently completed a transaction with my business partner to take control of ReadyTechs so now I am back at the grindstone looking for the next deal. Which, I currently think, is Call Centers.....or more specifically, Digital Contact Centers. A call center format using all forms of digital communications (VOIP, IM, Email, Web) to provide a higher level of contact to users.

If you are a call center owner or operator, please Email me. ethigent is interested in purchasing a tradtional call center to transform into a digital contact center, or partnering with an existing one to develop the technology needed to drive this.