Outsourcing: White Collar Exodus

Topics: Outsourcing, Customer service, Company Pages: 6 (1938 words) Published: November 28, 2011
While outsourcing may be beneficial to some of the companies partaking in it, the general consensus is that it ultimately proves to be harmful to the American workforce. The act of outsourcing and shifting many company call centers and technical support teams, or “low skill service jobs,” to foreign countries reduces jobs for those that could truly benefit from them within our own country. The unemployment rate has dramatically increased, and continues to rise, compared to what it has been in years past; yet there are numerous companies which still insist on handing over these “low skill service jobs” to people in other countries such as India. The most obvious and logical reason for outsourcing is reducing costs; people are working for a smaller fraction of the pay compared to that of their American counterparts. Outsourcing is used by many companies both in and out of the United States; it has proven to be beneficial to the companies that choose to partake in it, while other companies do just fine without outsourcing.

This video focuses on the call centers that have been springing up in Mumbai, India. Many United State’s companies are investing in building call centers, training workers, and teaching their employees English. This proves to be more beneficial to the people of India than those within the company’s home country. Since 2000, over two million jobs have been outsourced to India. That is two million people that could have been employed in the United States; two million people that could be living a more prosperous and healthy lifestyle and two million people in another country benefiting from outsourcing U.S. jobs. Outsourcing continues to be a controversial issue as it holds many benefits for both the consumer and company, however there are also several negative aspects to it which can harm both parties.

The call centers that have been moved overseas not only help the hiring company by saving money and reducing costs (both financial and timely) for the company. They can also benefit by holding a higher standard to their work. If technical support is what a center is based upon and all it takes care of, then the job can be done more thoroughly. Those who are given these jobs have been specifically trained to do them to their fullest potential and thus they provide a more “expert” service. By having a more clearly defined role and providing better customer service, the company will also see a return on investment and loyalty to their brand. Another beneficial factor that many companies look into is the ability to focus more of their time and money of developing better products. Some companies pass the cost savings onto their consumers by lowering costs, while others put money back into their products, research and development, and quality assurance. This will drive a higher quality product which can last longer and function well, and increase in overall value for the product and consumer. There are many benefits to outsourcing jobs such as call centers and technical support for a company. Between cost savings for all parties, the ability to research and improve upon existent products, or even being able to develop new products, some companies have seen major increases in profit, quality, production, and sales. However, outsourcing is not all good; there are several aspects that prove to negatively affect a company and the people in which it provides for.

If an organization decides to outsource any aspect of their company that is concerned with financials, such as payroll or tax information, there is a potential that this information can be leaked out. This would result in a severe security risk and can put the entire organization in jeopardy. If a competing organization happened to get their hands on such information, it could provide them with the information they need to pull off better and stronger competition. Outsourcing providers should be carefully watched...
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