outsourcing jobs

 

Outsourcing is a trend and a business strategy whereby a firm does not handle certain projects, functions or business processes internally. Instead, it trains another group, often in another country, which will handle those tasks. Or else, it hands over these processes to a group of people that is already skilled at handling them. Inevitably, when a task is outsourced, it will mean some jobs being lost and some jobs being gained.

There has been much discussion in recent times over the issue of outsourcing of jobs. This is because those whose jobs have moved to offshore locations are protesting the loss of their jobs. The issue of job outsourcing is increasingly politicized.

There are also those who argue that even if there were no outsourcing, people would still be losing jobs. Sooner or later, most firms would try to cut costs by laying-off employees. With increasing mechanization and technology development, lay-offs are inevitable.

However, with savings generated through outsourcing jobs, companies expand local operations, generating more jobs. Also, with jobs gained through BPOs in other countries like India, people are spending more and the demand for foreign-made products is increasing, and imports from the USA also rise.

Data 2004 -  Author Annie Zaidi

  

 

What is outsourcing - A guide to outsourcing  

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