Wednesday, July 7, 2010

Outsourcing- Who are the Gainers?

When America started outsourcing blue-collared jobs to  third world countries, its citizens did not really overreact to some companies' decision to get a cheaper, but still efficient workforce. Vietnam, for example, profited from this revolution. A lot of jobs were generated in Vietnam when Nike started employing the Vietnamese to make Nike Shoes. Only a select few questioned the conventionalities of this practice.

When America, however, started passing white-collared jobs, to countries like India, Philippines, and China, it ignited some voices to advocate the prevention of outsourcing offshore the United States.

Those who lost their jobs knocked at the door of the government through rallying in the streets. Some politicians rode with the issue and condemned outsourcing as an "unpatriotic" act and injurious to the American public.

While clamors aroused in the US, outsourcing, on the other hand,  has changed the course of the country which receives the major bulk of the jobs being forwarded.
Take for example India. Outsourced jobs created an influence not only in the country's economic status but also in the culture and way of life of their young generation, which is the population that has greatly benefited this job revolution.

Note that 54% of India's population is under the age of 25. That's more than 500 million young people competing for a job, and just a minute percentage could actually get hired. The competition for work there is neck-to-neck and the emergence of the Business Process Outsourcing or BPO industry in that country, for example, is like a whiff of fresh air to the job hunters.

Because this process has caused such a major shift in the economic status of the people who actually landed on the jobs, young workers of India also experienced a change in lifestyle. The job opportunity and the above average compensation that they receive allowed them to actually spend more than they used to. They now have the chance to buy what they want, instead of secluding themselves into purchasing just what they need, and most of the time ending up purchasing imported products from the US or Europe.

The end result is still interdependence. Domestic country loses jobs. Foreign country gains the jobs. Foreign country buys the domestic country's products. Domestic country gains revenues. Globalization has to be a two-way process. US just have to find a way on how to make outsourcing a win-win situation for them. Looking at how things are going on in the economic global zone, outsourcing is here to stay - at least for a long time. A very considerably long time.

No comments:

Post a Comment