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Outsourcing Jobs Abroad

Fiona Eliott, manager for information technology, spoke: ‘look, the government’s facing a budget deficit of $300 million. If we outsource our call centre work to India or the Philippines we can reduce our labour costs by at least one-third. We have a moral responsibility to the taxpayers of this state to operate as efficiently as possible.’

Simon Prystay, director of education, glared at Fiona. ‘Yes Fiona, and we have to be realistic. Why should Australian jobs be shipped offshore to India or the Philippines? The government’s concern is with the welfare of Australian workers. Why should Australian taxpayers’ money end up in the pockets of foreign workers?’

Fiona snapped back, ‘For the very good reasons that the work will be done at a much lower cost and with much higher quality results!’

Simon smiled. ‘Fiona, wake up. How many politicians do you know who will be prepared to stand up and publicly declare that they are in favour of exporting Australian jobs? Outsourcing may be okay in the private sector, but in the public sector life is more complicated. Can you imagine the reaction of the public sector unions when the Minister announces that the department is going to do away with 200 jobs? And don’t forget she is a labor party minister.’

‘Okay, I take your point. But given the size of the government’s deficit it really has to face up to the alternatives – cut services or increase taxes. The whole aim of outsourcing is to maximize value by saving money and improving services.’

Discussion Questions:

1. Who do you agree with? Why?

2. Should governments ban the outsourcing of jobs to foreign countries? Explain your answer.

1- Who do you agree with? Why?

I agree with Simon Prystay the director of education. if the government goes with outsourcing it will reduce employment opportunity and it will affect the welfare of Australian workers as they deserve to be valued in their country , to...
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