Don’t reject outsourcing!
Here we go again. Outsourcing is being blamed for all evils – or at least all unemployment.
Yes, it is easy to blame outsourcing of services to India for stealing local jobs, but is very short sighted and beside the point.
It is a question about globalisation. Do you want to accept it or not?
I believe there is no half way for globalisation.
If you are against it - you would have to draw the limit on globalisation and then have a good argument for this limit.
Should you be allowed to outsource services to Ireland but not to India?
Or should the limit rather be the UK borders, so you can outsource to Scotland but not to Ireland? Why not keep English jobs in England and disallow outsourcing jobs to Scotland and vice-versa?
To argue “British jobs for British workers” or “British Employment pays British Taxes” are not valid arguments.
Then Germans may just as well argue “German jobs for German workers” and stop buying British goods and services.
This is unconstructive thinking that helped turn the 1929 stock crash into a global economic disaster. Let us not repeat this mistake again.
Companies have to stay competitive, and if that requires outsourcing certain types of jobs, tasks or systems to suppliers in other countries then that is what the companies should do.
Globalisation is not about cutting the cake into big and small pieces, but about making the cake bigger, so we all can have a bigger piece.
Don’t forget that UK has benefitted hugely over the years from the increased globalisation.
UK in general and London specifically has reaped the benefit from the globalisation of the finance industry more than anybody else. UK attracted lots of very highly paid jobs, which then generated lots of other jobs supporting the financial industry and supporting the bankers’ consumption.
The financial industry now has its problems and that of course hurts an economy more when it depends on the financial industry for its vitality.
The way out if the crisis is not through protectionism, but through investments, as I have argued before.
March 20th, 2009 at 2:27 pm
The problem with outsourcing is that its promoting slavery around the world. Only the US is subject to human right violations. Just look at China and India, they dont’t follow the same rules. In other words, this will never be an equal playing field. Whether you like it or not, that is the reality.
March 1st, 2010 at 3:17 pm
I totally agree about the globalisation of the workforce. Competitive advantage for companies is now gained through the global deployment of skills and talent, where previously skills and talent were sourced only nationally. But there is a balance and one I have seen working well and that is the blended model. Not the all or nothing model. Onshore management and workflow, client relationship management with offshore delivery is a tried and tested model. I have seen it working very well recently in the outsourcing of Finance and Accounts. It’s not done often and it has to be done well. When it is - it really is a deal winner. In addition, globalisation if seen as a proactive measure can be superbly liberating for the switched on organisation and individual. It doesn’t have to be the employment killer that it is painted as. I have seen organisations transformed, I have seen departments revolutionised when outsourcing is seen as an enabler not a thorn in the side.
March 17th, 2010 at 8:16 pm
This is just my opinion. This is the reality so we have to face this. I believe in the saying “reality bites” that’s why a lot of people getting hurt about what happened now. I think we don’t need to blame anyone of why and what’s happening. All we have to do is accept and work for the better. Financial crisis is happening worldwide and not just in the US. So let’s accept the fact. Outsourcing is outsourcing and it’s already here so accept it and practice it if you want because if you keep on blaming then nothing good will happen to you.
Peace!
Phil
April 1st, 2010 at 6:48 am
Robert, I would have to agree with you on that. It does somehow promote slavery. But the problem is these countries involved embrace the idea of it. Well, it’s not like they see outsourcing as slavery. But the idea of them depending heavily on the industry says otherwise.