K E R A L A M O N I T OR N E W S Emirates Environmental Group calls for defining guidelines on "Green Buildings" in the UAE DUBAI - June 1, 2004 Emirates Environmental Group (EEG), the leading non-governmental organisation working in the field of environmental protection in the UAE, has long issued a call for defining Green Building parameters in the context of growing property development activities in the UAE. At its 5th General Meeting for 2004, held yesterday (May 31), at Sheraton Dubai Creek Hotel and Towers, Green Architecture expert Mario Seneviratne, Director of Green Technologies Company and member of Programme Committee, United States Green Building Council (USGBC) - Green Built 2004, articulated the parameters defined in the Leadership Energy & Environmental Design (LEED) standard. Developed by USGBC, the standard lists and defines the basic requirements of a Green Building design. Opening the deliberations on Green Building design, Habiba Al Marashi, Chairperson, EEG said, "Architecture can make a major contribution to the pressing quest to devise ways of life that are less taxing on the earth's resources and capacities for regeneration. Buildings account for nearly half the energy consumption of developed countries, and therefore are the major cause of global warming, the most tangibly urgent of environmental problems. Buildings are just one of many entities of the architectural product - their relation with their environment; their location vis-à-vis public amenities; the burden their occupants will place on road networks; all these and more are issues that will determine a building's green thumbprint." "It is not that the modern architectural idiom evolving in the UAE's vibrant property sector does not reflect the desire of our community for architecture that promises improved quality of life. The first steps have already been taken. At this stage of development of our architectural consciousness, it is important to articulate the parameters of sustainable and environmentally friendly architecture," added Al Marashi. The meeting, 5th in EEG's series of community lectures on Green Design and Architecture, put forth 10 "shades of green", key requirements in setting parameters for Green Building design. These include design concepts that provide for low energy use, yet ensure high performance; use of replenishable resources; recycling; embodied energy of the building; a long life, loose fit identity; total life cycle costing; the embedded in place nature of the building; access and urban context; health and happiness; and community and connection. Mario Seneviratne elaborated the LEED standard developed by USGBC and presented it as a case study for developing a UAE specific standard for Green Building design. The LEED Green Building Rating System is a voluntary, consensus-based national standard in The United States of America for developing high-performance, sustainable buildings. Members of the U.S. Green Building Council representing all segments of the building industry developed LEED. LEED was created to define "green building" by establishing a common standard of measurement; promote integrated, whole-building design practices; recognize environmental leadership in the building industry; stimulate green competition; raise consumer awareness of green building benefits; and transform the building market; and is currently implemented in its second version, with new research continually redefining the standard. "LEED provides a complete framework for assessing building performance and meeting sustainability goals. Based on well-founded scientific standards, LEED emphasizes state of the art strategies for sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality. LEED recognizes achievements and promotes expertise in green building through a comprehensive system offering project certification, professional accreditation, training and practical resources," said Seneviratne. "In the present context of UAE, where number of buildings is multiplying by the day, there is an urgent need to adopt Green Building standards. This would not only ensure cost effective buildings but also healthier and more productive living environments for its occupants." Numerous representatives of the UAE property sector, as well as decision-makers attended the meeting from the country's public and private sectors as members of EEG's Corporate Social Responsibility Network. India Iran Friendship - Iranian Ambassador Mr. F.Z. Yaghoubi calls on the Union Home Minister Shri Shivraj Patil in New Delhi on June 1, 2004 (Tuesday). INDIA’S DOMINANCE IN OUTSOURCING E.C. Thomas* India has made a strong niche for itself in the Information Technology – Enabled Services and Business Process Outsourcing (ITES – BPO). The outsourcing industry in India has emerged as the single biggest employment generator in recent years. India’s $ 3.6 billion outsourcing industry, backed by its army of cheap, English – speaking skilled personnel is expected to reach an annual turnover of $ 13.8 billion or nearly half of the global offshoring market by 2007. India is the most preferred choice for global companies when it comes to outsourcing. India got 60 per cent preference amongst the global companies, while its closest competitor was China with 32 per cent preference, according to a study by the Hewitt Associates of US on global sourcing trends and outcomes. Outsourcing Outsourcing is a long-term growth and survival strategy for multinational corporations by which an organization contracts routine functions to service providers who specialize in such functions. The business proposition of BPOs is to take over the non-core processes of companies and bring in the best practices. From outside companies are using BPO to reach a wide range of goals. What was once viewed primarily as a way of reducing expenses has now emerged as a means of achieving productivity gains, short-term innovation cycles, enhance customer intimacy and enter new markets. According to National Association of Software and Service Companies (NASSCOM) estimates, over 50 per cent of the Fortune 500 companies have incorporated offshore outsourcing into their strategies and around 80 per cent of these now use India as their development base. BPO offerings are becoming more comprehensive. From managing repetitive, transactional chores like Payroll and Accounts Receivable, BPOs have enhanced their service portfolios by also handling knowledge-based activities like Budgeting or Resource Planning, giving customers access to a complete menu of end-to-end processes in functional areas such as HR, Finance and Customer Care. Growth The BPO sector in India has been growing at almost 60 to 70 per cent per annum. According to NASSCOM, the projected revenue of the BPO industry in India is expected to touch US $ 12 billion in 2006. This is a nearly four-fold growth from the 2003-04 revenue estimates of around US $ 3.6 billion. The number of jobs increased from 140,000 at the end of March 2003 to a projected 245,000 in March 2004, according to Nasscom’s ‘Strategic Review 2004’. This could rise almost five times in the next five years. Each day nearly 200 people join the Indian ITES – BPO industry. BPO is a specialized form of international trade in services, based on the doctrine of comparative advantage in international trade. Today, companies outsource to destinations like India because they see value in their investments in terms of quality service and financial spending. By outsourcing to quality and lower cost operations, these companies are able to lower overhead costs, compress time-to-completion with efficient time difference management and focus on core competencies. There are many clear instances of such advantages to companies over a short time-frame. Likewise, banks and financial institutions will not send their data to these countries, unless they are sure of the credentials. As pointed out in the McKinsey Institute study, the US economy benefits in outsourcing in more ways than one. One estimate says that the General Electric (GE) which employs 18,000 workers in India, saves $ 350 million per year through outsourcing. In all, $ 8 billion has been saved in the USA through outsourcing. A NASSCOM report estimated 60 per cent savings in costs for companies outsourcing to India. There exist 185 Fortune 500 companies which outsource work to India. Information Technology Enabled Services (ITES) provides opportunities for MNCs to reap the surplus in the service sector that did not exist earlier. The companies engaged in production of value-added services, from medical transcriptions to software programming, require skilled labour which countries like India have in abundance. In fact, Indian call centres have a higher productivity as compared to those in the USA or UK. According to NASSCOM, an Indian call centre agent makes on an average 98 correct transactions, as compared to 95 by an agent in the UK. Besides, the Indian makes 120 transactions an hour, while his British counterpart makes only 100. However, efficiency does not always mean higher pay. A worker’s basic salary in the USA is $ 63,000 per annum, while it is $ 5,850 in India and $ 4,750 in China for the same job. Controversy The recent controversy that outsourcing had resulted in job losses in the USA is more political than economic. Ever since the US Senate passed the Bill on banning government outsourcing to foreign countries in January 2004, there has been a lot of resentment in the Indian IT industry. Although the US Senate Bill will not affect the Indian outsourcing industry much, as it accounts for a mere 2 per cent of the total volume, the regular efforts to create emotional cries about job loss for Americans are disturbing. The American search for foreign scapegoats for the unemployment problem is not new. In the 1980s, Japan’s trade surplus and acquisition of major entertainment companies such as CNS Records and Columbia Pictures fanned irrational fears of an economic and cultural occupation. The anti-Japan hysteria waned once the US economy revived. In a similar vein, subsequent waves of panic about job losses, first to Mexico and then to China, have ebbed and flowed without making a material difference to employment levels. By no stretch of imagination can the estimated 245,000 employees now working in business process outsourcing in India pose a threat to the 100 million workers in the US services sector. American business houses themselves do not want to be restrained in any way from tapping cheaper sources outside the United States. From a macroeconomic perspective too, the US cannot afford to ignore the increase in productivity that outsourcing ensures. Competition Outsourcing is the considered response of companies in the wake of the enormous pressure that businesses worldwide are faced with and this trend will continue, as there are tangible benefits in terms of productivity, quality benefits and cost savings. This means lower costs and better service for consumers, even as it increases the market share and profitability for the corporates. Gaining efficiencies, leveraging existing investments and hence enabling companies to be more flexible and adaptable to changing business and market conditions are some additional benefits of outsourcing. *Senior Freelance Writer