Offshore Outsourcing and Employment IssuesFriday, January 20, 2006
The process of Offshore Outsourcing has a large impact on employment in almost all countries worldwide. This is the process that has been a blessing for the companies involved in it. Almost all the companies dealing with business in this way are making profits out of it. These cost-cutting advantages attract more and more companies towards it. But along with this it also has an impact on the employment process. It has its impact on it in both a positive way and in a negative way. In some countries, it fetches employments and creating jobs while in other countries it is the main reason because of which many people have lost their jobs. Offshore Outsourcing is playing a major role in employment issues.
In country like India, the process of Offshore Outsourcing is proven to be the blessings regarding the employment issues. As India is the country which is heavily demanded in the market globally for IT services more and more IT graduates are getting jobs with the handsome salary pay. More and more job opportunities are taking place day by day in this country because of it. Along with India countries like China and many others who are big offshoring countries, employment is not a big issue in IT sector. Lots of opportunities are rising because of the Offshore Outsourcing in almost all the fields. The main reason behind this is these countries are providing the services with very lower labor cost compared to the countries like America and Australia. More and more companies from America, Australia and many more countries are dealing too much overseas investment in these low-cost territories. But because of this the controversy is now taking place regarding the unemployment issues in such countries. More and more people are now loosing the jobs and the companies and country is unable to create new job opportunities for them. In the process of Offshore Outsourcing large no. of companies from these countries are shifting jobs in BPO, Software Industry, and call centers to their branches in the countries like India and China.
Offshore Outsourcing is the reality of the present century and the process of dislocation of the jobs is bound to take place. Lots of political personalities are also now taking interest in overcoming to this issue. Surprisingly unemployment because of the overseas business has been the discussion issue in many countries during the elections also. The legislation has also been sharply criticized in such countries. Riots and strikes are also taking place because of more Offshore Outsourcing in these countries.
In short the process of Offshore Outsourcing has both effects regarding the employment issue. Lots of countries are there in which more and more employment is taking place, while in countries like US and many more this business process has brought unemployment. The government should take some serious steps in this matter and also look forward in job creating procedures to those who have lost the jobs because of Offshore Outsourcing.