Global outsourcing Industry is a multi-billion dollar Industry. For all Business Organizations, revenue generation and profits are the bottom lines. The need to generate revenue has led to the growth of Business practices like Outsourcing which have spun into Industries of their own. Where Businesses migrate some of their activities to offshore locations, the source Countries have backlashes with feelings that jobs are being sent to benefit other countries.
The perspective that is normally ignored is the value addition Outsourcing delivers to the markets that are sending jobs to other countries, this means that the end users or consumers of services or goods get better value for money.
under normal circumstances, this is a beneficial scenario for both country and companies alike. This coupled with the benefits of Outsourcing, the phenomenon actually does have more pros than cons.
Are there real or perceived job losses due Outsourcing?
Contrary to popular belief Outsourcing does not actually lead to job losses, but it leads to Transformation of the way certain jobs are done. If a job is sent to an offshore location or even a nearshore location, there usually remains a team of individuals who manage the process. So what actually happens is the movement of the functions from one individual to another.
According to Experts in Outsourcing, this framework means that jobs just get transformed and moved from one person to another, but very rarely does Outsourcing lead to direct loss of jobs for individuals or even to companies.
Does America benefit by Outsourcing to the rest of the World
The benefits of Outsourcing far outweigh its cons both from an Organizational and country level, there are many multi-million dollar Outsourcing Companies in the US employing millions of people. These Companies pay billions of dollars in Taxes. Enhancements in service quality, efficiency and cost-effectiveness are direct benefits of Outsourcing for the consumers of various services and products.
The question then is whether America should continue outsourcing or not, the debate can go on forever, but Outsourcing as a Business strategy will always remain, and keep evolving while providing value to all stakeholders in the exercise.
America, as well as the countries, work gets outsourced to will always do whatever it takes to keep the Industry growing. That in turn can lead to big success.
