Outsourcing is sometimes faced with negative opinions of people.
In times of recession there is always an increased interest for cost savings, such as outsourcing of IT projects to countries with lower wages. Some people feel that outsourcing is cruel and damages the local labor market in Europe, Oceania and America. Research has proven that this is not the case. The Belgian Federal Planning Bureau has made a study; ‘The impact of offshoring on employment in Belgium’ (feel free to Google it). This study shows that offshoring had no negative impact on the employment in Belgium in the period 1995-2003.
Outsourcing is social responsibility and in one time benefiting companies in higher cost countries.
Slide from presentation given by a Mother-Entrepreneur of the Philippines(internationaloutsourcingsummit 2011) who said;
"Jobs created through Outsourcing/BPO make that family members don't need to go abroad anymore to find work, now families can stay together!".
Almost the whole audience got tears in their eyes; as outsourcing managers, we never realized how big the impact is for so many families.
Outsourcing sends jobs to lower-income areas, which provides more jobs for them. That is a good thing for people in developing countries. We take our social responsibility and feel that outsourcing has an equalizing effect on the overall distribution of wealth. I believe that outsourcing also helps to bring down prices, which stimulates the world economy thus brings greater economic benefit to all in the long run. I do not believe in protectionism, that is a thing of the past.
Tom Peters said 'Distance is dead’ over a decade ago, but most people still do not grasp the consequences. We must now compete on a global scale, that applies to companies as well as to single individuals’.
Patrick Van Dun; lives and works more than 7 years in Asia. He started an IT Outsourcing Company in Nepal and was responsible for the build-up of a data entry and localization company in the Philippines (growth from 27 to 330 FTE in less than 6 months).
At the moment he is studying Mandarin in China, gives freelance advice and is looking for new employment world wide.
Feel free to contact Patrick with general questions or regarding a new assignment through LinkedIn.
This article was written by and is copyright of Patrick Van Dun, If you like to publish the article, mail for approval.