what is ur opinion on outsourcing

India
March 15, 2009 5:27am CST
i think its not good for US because already unemployment is more due to this.... but india, china, so on are well employed by this outsourcing
1 person likes this
4 responses
15 Mar 09
It is generally good for business in the sense of reducing labour costs, but bad for the local workers, that lose out on the jobs. I have heard many people use the "if i was in charge, i'd do things differently", but sadly in reality, when push comes to shove in these dire economic times, survival and indeed growth of a business (protect one's own interests) is a natural instinct. If you maintain an expensive localised workforce and subsequently go under, everyone loses. If by outsourcing, the reduction of costs gives you a chance to weather the recession, it is the obvious choice. If you look around the web you will find countless forums and reviews vilifying the outsourcing of support jobs as clients leave a service provider because the support provided is below par. Most support teams are based in a call-center (often shared with other businesses) and given bullet-points to use in various situations. With the support industry you have the concern that by outsourcing jobs to far away countries, you alienate your clients. The client and the support op, may not be able to understand each other and equally the op is invariably untrained at dealing with queries. Companies offset this lack of training and knowledge against the minimal labour cost. With a substantially lower wage, the expectation is lower and their distance from the company itself, decreases their hands-on knowledge and development. At the end of the day this is not the fault of the individual, but the company who neglect to provide them with the training (another cost-saver). In non-support areas, outsourced workers are often (not always) more skilled than those based locally. India and China for example have traditions of working with material and clothing. Often these skills are passed down through generations. Sadly many other countries have lost those skills to technology and there are comparatively few natural craftspeople anymore. These outsourced workers can provide greater quality and quantity and at a much lower cost than the combined local workforce and machinery. Everyone's opinion and reasoning is bound to differ on this subject, but this is purely down to how it relates to that individual. Best Regards Matt
@vu3nnn (85)
• India
18 Mar 09
Outsourcing is good if the rules of the games are properly observed by all parties concerned. However, what happens in most cases is that the outsourcing company acts as a middleman - they utilize the sweat of the ordinary worker or "associates" as they are called to make a fast buck for themselves. For instance, let's assume they charge $500 per month for a web designer from the client. This company would just pass on the client's instruction to the "associate" and pay him a max. of $100, and pocket the rest. There will in most cases be no value addition or even quality checking. Outsourcing companies do not even consider such workers as employees. They are rather "resources" to be exploited to the maximum possible extent. If you say that such companies provide job security and a steady regular income to such associates, wrong again - they are hired and fired at will and even their salaries are arbitrarily cut. Of course, not all outsourcing companies are like this, but from my experience I have found that most companies in India operate on such a fundamental basis, though specifics may vary. At the end of the day, this leads to unemployment in the parent company (lets say USA or UK) and exploitation in the processing company (lets say India or Philippines). The only people who benefit are the corporates.
@LouieWpHs04 (4555)
• United States
15 Mar 09
It's good for the company that does it but not necessarily the person on the receiving end of it but in some cases it's not a bad thing. One case could be that a given freelancer would have more opprotunities to work for the extra parttime cash but the second case.. not so pleasant. Basically shipping jobs overseas so that people could do the same job for less money which I think is horrible. I get the idea that the business is there to make as much money as possible and to stay afloat but still. I don't think it's really the way to go.
@srganesh (6340)
• India
15 Mar 09
Outsourcing is good in the sense you get your jobs done at lower price without missing quality.We,Indians are earning more through that and after the satyam scam,it is a great set back.Even we anticipated America's turn back on IT industry we are hoping other nations,but satyam put a big full stop.Hope we regain our status in outsourcing.Cheers!