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Off-shoring / Outsourcing: Major Productivity Driver
from: John Parker
The findings of a study conducted by a North Carolina, USA based
research and consulting company prove, beyond doubt, companies
or firms that off-shore / outsource benefit greatly due to
improvement in productive output. Instead of putting the
pressure on Human Resource managers to increase productivity
levels, perhaps, corporate executives should consider
off-shoring / outsourcing company work, if they haven't done so
already.
Despite, off-shoring / outsourcing being the major drivers in
increased productivity, there is still a lot of moaning and
groaning going on about the trend, very much in the vein of the
19th century imperialists although we are living in the 21st
century global age of economy. We should realise that countries
receiving off-shored / outsourced work have inspired a
promising, nascent entrepreneurial culture guided by nationals,
most of who studied at a prestigious American university with
subsequent employment at one of the big name American companies
before going back to their home countries. Having returned to
India or China, they proceeded to set up global start-ups with
home-grown talent, start-ups that are producing products and
supplying services as world class as anything seen in the USA or
elsewhere.
On a visit to Bangalore, India, Mike Moritz of Sequoia Capital
was awestricken by the sheer energy of Indian companies coupled
with the extraordinarily educated, talented workforce graduating
yearly from Indian institutes. This is what has driven many
American and European companies to off-shore / outsource work,
work that is completed at half the cost by hard-working,
talented work pools.
Off-shoring / outsourcing is here to stay, the sooner we come to
terms with it, the better for everyone involved. We pushed for
free trade in order to sell American products and services in
countries previously closed to us. Now, that we have what we
wished for, why complain, after all, the natives have learnt a
harsh lesson and are in no mood to unlearn it. The days of 19th
century imperialism that we had gotten used to are over, no
longer one-way, the two-way street is here for the long-term,
and the sooner, we realise the benefits of off-shoring /
outsourcing the better! To cap them: 6. Cost Reduction. 7.
Greater Productivity. 8. New Job Creation. 9. Higher Performance
Levels. 10. Reduced Employee Head Count.
Instead of griping, why don't we concentrate our energies on
turning the off-shoring / outsourcing trend into a winning
situation for both sides!
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