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OUTSOURCING: AND, THE WINNER IS
from: John Parker Economic History shows that liberalized countries with
receptiveness to global trading perform well on the economic
scale as compared to those that shut the rest of the world out.
The end of World War II saw America and other developed nations
champion the cause of trade liberalisation having seen the
deleterious results of trade protectionism during inter-war
years. The opening of markets to free trade of goods and
services spurred growth that saw America and Asian Tigers
comprising of Japan, Singapore, Taiwan, S. Korea and Hong Kong
emerge as economic powerhouses. Take a look at China, a country
that owes its economic prosperity to western investment by way
of opening its markets to the goods and services offered.
Similarly, by off-shoring and outsourcing to countries that can
do what they do best at cost effective prices means people can
buy goods and services far cheaper than domestically. This
allows incomes to stretch further improving the buying power of
people who can now purchase more goods and services due to the
cost effectiveness of outsourcing or off-shoring. And,
outsourcing enables freeing up of labour and capital for
high-end work by off-shoring data management, accounting, back
office operations and call centers to countries like India that
do an excellent job for less than half the cost of what these
operations cost in USA or the EU.
An assessment of the reciprocal benefits of outsourcing
indicates that:
EU / American consumers profit from outsourcing through gains in
consumption, Leaner budgets give American producers a globally
competitive edge, More employment opportunities are created at
home, Outsourcing / off-shoring allows redundant employees to
advance careers by honing skills or changing jobs,
A strategic solution to diminishing resources i.e.
- aging workforce,
- insufficient people going in for higher education e.g.
doctors, scientists, IT professionals, nurses, teachers, etc.
Off-shoring / outsourcing work due to diminishing resources
allows us to provide services for which we have the resources.
By capitalizing on the opportunities provided by outsourcing or
off-shoring, and avoiding its pitfalls, we can make it work to
the common advantage of all involved. Outsourcing or Off-shoring
is the byword of the 21st century, a trend that will prove to be
a mutually satisfying experience for all concerned!
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