Many developed countries became open to globalization as an essential term in the modern world. Although there were a lot of disputes about the cultural aspect, they accepted it in the fields of commerce and investment more easily.
Yet, with the spread of Business Process Outsourcing (BPO) from the developed countries to the developing countries a new concern began to spread as well. That’s because outsourcing started only as giving minor tasks to offshore employees which will do more for less than their in-house colleagues. But this is not the rule any more.
Many companies found that there are many hidden talents in the poor countries that, if adopted, can be more outstanding than the talents present in their home country. By the time people in these poor countries began to understand this fact and gradually began to give extra care to their talents so that they became in an equal competition financially.
This made some economical experts uneasy. Tracing the records of big companies in the UK showed an increasing curve of depending on offshore employees in major fundamental tasks and projects. Statistically, following the mid-1990s till present, offshoring increased by 35% in manufacturing and 48% in services in the UK alone. However, most of this offshoring is still within the developing countries of the EU.
But the main concern about offshoring is that although it creates a lot of extra jobs world-wide, it causes a sever loss of jobs, especially domestic ones, in the home country. That’s because companies have found a new form of labor which can be more productive and cost-effective than that of the same country they are present in, so they prefer to stay in the competition and hire more employees to do more jobs with lower salaries than retaining few high-salary employees.
This raised another worry about the salaries of the employees in developed countries. More and more such employees become less agreeable to employers when they are compared to the other choices abroad. This is not very evident in the field of manufacture because it is still the main quality of developed countries and their workers, but it cannot be unnoticed in services which are preferred by default to be offshored be most companies around the world.
With the world-wide economic crisis, all employers suffer from decreasing wages (if not losing their jobs). This will make the loss more evident in case of developed countries whose employees are competed by offshored ones. It’s estimated that if things go on the same rhythm as they are concerning offshoring there will be a 2% decrease in the salaries in the next decade.
But as many experts are pessimistic about outsourcing, there are also many optimistic expectations. It’s a very good sign for the emerging trend of ‘working from home’ which was considered as a sweet dream in the past. If office employees are decreasing, there is an increasing number of home employees whom are not bounded by physical job requirements as having a desk or getting up early to catch the bus!
To sum it up, when considering outsourcing you should think of the loses and gains, not just one of them.
Nice post now i know that there are some people appreciated the hidden talent in a poor countries now i realize that you should think positive. nice very inspirational article.
Client commitment at BPOs frequently grow up the value chain.This business fusion is a great win for clients, great for employees, great for outsourcing service providers.Both call centers as well as the IT needs its global client?