Software outsourcing in regard to employment protection

Friday, December 23, 2005

Many large reputed software outsourcing companies are now eagerly employing call center and back-office staff in developing countries where there are no minimum wages to be necessarily be provided. The employment legislation and other discrimination are not much considered. There’s a huge difference in the pounds and dollars given to the in-house staff, and the salary provided to the offshore outsourcing staff.

How much is it beneficial for Indians? Not necessary it is always good because what we find is professionals from other fields are tempted away from more socially useful employment. The law of Britain does not give direct legal rights to the workers who are providing direct services to Britain, just the reason that they are not physically present over there. Those who are notionally residents of the UK are protected wherever in the world they work for British employers.

It is difficult for foreign software outsourcing workers to impose their rights, as the courts are unknown about how to deal with complaints effectively without physically present there. Even the label of a self-employed or foreign subsidiary is no use as it does not bring any difference in the employment protection legislation, including the anti-discrimination laws. Even software outsourcing service industries face the same problem. Many software outsourcing firms based in a developing country like India pay a decent wage. This can obviously be a blow to the British government against the legislation department, for not taking the employers’ safety and protection into consideration. The employers of software outsourcing industry would have to face this struggle for some more time until a change in the infrastructure of the British government comes into existence.