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Monday, March 17, 2008

Some bare truths about outsourcing!


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A newSome bare truths about outsourcing! report by The Work Foundation – an international not-for-profit organisation – that brings all sides of working organizations together to find the best ways of improving both economic performance and quality of working life says that the fear that all ‘good quality’ British jobs are being ‘outsourced’ to India and other developing countries is not so real after all! It may be overstated. Here’s why: while only 5.5% of all jobs were lost across Europe due to outsourcing, in Britain, jobs that can be potentially outsourced (in sectors like call centres) have actually gone up and not down. Which means that lesser jobs are being off shored to countries that can offer cheap labour. “The evidence suggests that while trade in services between Britain and India is certainly rising, it is not happening nearly as fast as is sometimes imagined. An increase from 0.4% to 1.2% between 1995 and 2004 is less of an explosion and more of a slow evolution,” states the report, adding, “Technology has always led to people being displaced from some lines of work into others, but what is not happening is a straightforward job migration from North to South, West to East.” What’s more, the report even says that industrialised nations – not poor, developing ones – are benefiting more from outsourcing. Ain’t that food for thought?

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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