Outsourcing : How does it Affect the Nations
By manish48
@manish48 (36)
United States
September 29, 2010 12:54pm CST
Outsourcing-the buzz word in the Industry Today. Recently when the US senator called for a permanent ban on Outsourcing, It has become a point of concern for both the developing as well as developed Nations. The outsourcing companies gain a
big amount of margin by getting their work outsourced, hence increasing their profitability. On the other hand the developing nations earn a handsome amount of revenue from the outsourcing business. I am still wondering , How the nations will react to it and what will be the long term impact?
3 responses
@crossbones27 (49722)
• Mojave, California
29 Sep 10
I don't think the should put permanent ban because you still want other countries to import our goods. You want those countries to see fist hand what we make, not all lead filled like China. Industries are going way over board on this to make profit. How much money does one man need. I am sorry but they get so much money, and they don't know what to do with all of it. They just sit on it and in my personal opinion that does no one any good in the US.
@manish48 (36)
• United States
29 Sep 10
Believe it or not the companies based out of US are making a handsome amount of money by outsourcing. Condidering the fact I would certainly say that Outsourcing has really proved Profitable for these countries. Otherwise it would not have existed long back. but now the US government is under pressure because a lot of People in US are loosing Jobs , because of this phenomenon.
@crossbones27 (49722)
• Mojave, California
29 Sep 10
Thats my point. If it hasn't already caught up to us it will.
@pankajgarg (797)
• India
29 Sep 10
well actually every thing has a limit. the us companies started outsourcing just keeping eyes only on profits but now as this outsourcing is jeopardizing the employment of the us citizens itself and the obama government will surely take stringent steps further .........
@pankajgarg (797)
• India
29 Sep 10
well outsourcing is not impacting any economy in a long run(15-20) years but there are impulsive effects due to outsourcing.
the most recent example is india and usa.
india being a developing nation and huge english speaking population and qualified technicians like software developers, electrical engineers work for developed nations like usa, australia and uk etc and are source of cheap manpower required for work eg a software developer will be paid around 200-300$ PER HOUR in usa but in india they can have the same work done for only at most 3lakh rupees i.e 6000$ PER MONTH.
so it is a profitable affair to provide outsourcing but as the countries grow and develop the outsourcing cost increase and changing government policies the amount of outsourcing will be limited and will be balanced so as not to create unemployment in the home country
@manish48 (36)
• United States
29 Sep 10
I totally agree with you Pankaj.The countries like India should look for more greener pastures and explore the potential of expanding their business. Now a days Europe has proven to be a very good destination for Indian Companies to invest their manpower.
@manish48 (36)
• United States
30 Sep 10
Pankaj, the solution to this problem can be laying more stress on manufacturing. Look at China , A majority of their revenues are generated from manufacturing industries. On the other hand India is solely dependent on Services sector. If countries like US start putting a ban on outsourcing ,the economy will highly be impacted because a major chunk of revenue is generated from this sector.Second this is more investment on Research and Development.Currently we are not at all focussion on development of any new product.Looking at these scenarios we should start recommending the same.
@pankajgarg (797)
• India
29 Sep 10
but manish the thing is how long can we rely on outsourcing provided by foreign countries, we have to solve the basic problems like population and corruption in our country and have to comply completely with our energy requirement.
without outsourcing we will be no where if we don't start digging alternatives to support the economy of india
@1anurag1 (3576)
• India
30 Sep 10
I think outsourcing is just a way of business practice interchange. Even with in any country these practices are done. By the jobs they provides us we buy the products manufactured by them. Indirectly in other sectors the jobs are created. But by imposing a ban only will show that the bigger country is not going against the free trade.
