Yes to Outsourcing
'Bangalored' is the new term for outsourced in the diction of the US President, Barack Obama He is determined to make outsourcing an unattractive proposal by imposing stricter tax norms. He is unhappy with the fact that American firms are preferring the Indians or the Chinese over natives just to lower their operating costs, have a higher profit margin and avoid paying taxes on the higher return by reinvesting offshore. But it is not completely true that the US stands to gain nothing from outsourcing.
The companies that have offshore offices expand their business as they now reach a wider section of society and compete with local businesses also. These companies don't hire people only because labour is cheap but because they are talented and meet their standards. So it is because of outsourcing that these companies generate the revenues they do. Obama's new policy will just enable other global players to gain a competitive edge.
In this era resorting to protectionist or populist measures wont help anyone in the long run. It will increase unemployment in the outsourced country to a degree but it will not do the outsourcing companies much good and in turn the US economy will suffer again. It's a vicious cycle.
The view point of the outsourced country is rarely considered. 'Brain-drain' is a very serious issue. The Indian Government invests highly in the educational sector by subsidising primary education, regulating the fees of various educational institutions and even providing education loans at lower interest rates and with tax exemption. Despite all these measures, rather than contributing to the growth of the country, people prefer to work in these MNC's as they allegedly offer more exposure and monetary gain.
The emergence of the BPO industry in India, which mostly hires the youth, tempts them with easy money. Hence they prefer to work in a call center sometimes even at the cost of their studies. Here they are taught to fake an accent, talk cheerfully even if they are in the worst of moods, listen to all the abuses hurled at them...All this plays havoc with their physical and mental health. And the point here is that do all this for another nation who keeps accusing them of stealing their jobs.
If anybody should be complaining, it should be India. Thanks to outsourcing, we are getting robbed of our talented, educated youth. All our investments are paying dividends to someone else. Is this fair?
The companies that have offshore offices expand their business as they now reach a wider section of society and compete with local businesses also. These companies don't hire people only because labour is cheap but because they are talented and meet their standards. So it is because of outsourcing that these companies generate the revenues they do. Obama's new policy will just enable other global players to gain a competitive edge.
In this era resorting to protectionist or populist measures wont help anyone in the long run. It will increase unemployment in the outsourced country to a degree but it will not do the outsourcing companies much good and in turn the US economy will suffer again. It's a vicious cycle.
The view point of the outsourced country is rarely considered. 'Brain-drain' is a very serious issue. The Indian Government invests highly in the educational sector by subsidising primary education, regulating the fees of various educational institutions and even providing education loans at lower interest rates and with tax exemption. Despite all these measures, rather than contributing to the growth of the country, people prefer to work in these MNC's as they allegedly offer more exposure and monetary gain.
The emergence of the BPO industry in India, which mostly hires the youth, tempts them with easy money. Hence they prefer to work in a call center sometimes even at the cost of their studies. Here they are taught to fake an accent, talk cheerfully even if they are in the worst of moods, listen to all the abuses hurled at them...All this plays havoc with their physical and mental health. And the point here is that do all this for another nation who keeps accusing them of stealing their jobs.
If anybody should be complaining, it should be India. Thanks to outsourcing, we are getting robbed of our talented, educated youth. All our investments are paying dividends to someone else. Is this fair?
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