Can the U.S. Elections Change the Face of Outsourcing??
The hot button in recent U.S. elections has been that of outsourcing and resulting unemployment from it. And this year too, it is no different. As the 2008 U.S Presidential elections draws close, anti-outsourcing and job loss cries pick up heat with Hillary Clinton too joining the anti-outsourcing bandwagon with Senator Barack Obama.
Well, perhaps not as sensationalized as in the earlier elections, still Obama has done his bit with a policy to give tax breaks as a reward to American companies that invest in the U.S.A. and do not ship jobs outside.
Though to some extent it is true that American jobs have been lost to outsourcing because of globalization but it is also true that more U.S. jobs are being created in the same process that has controlled the unemployment rate under 5% (Wow!). And it is not the IT sector only that has fuelled the generation of jobs in the U.S, but others also have contributed in the process.
Last week FICCI, an Indian Trade association, posted an ad in a leading American daily, viz. Chicago Tribune, giving account of how Tata Group, Ranbaxy, Mahindra U.S.A., Bharat Forge, ITC Kitchens of India and HCL America have created thousands of jobs by investing in different sectors of the U.S. economy.
Interestingly, after reading a comment in a media report by an U.S. trade representative, I think the anti-outsourcing campaigns and cries are only “By the electoral candidates, for the electoral candidates and of the electoral candidates.” Here is the media comment:
“Opening markets ultimately is the best thing we can do for the US economy,” U.S. Trade Representative, Susan Schwab said at the luncheon meeting in honour of Commerce and Industry Minister Kamal Nath (as reported by The Economic Times).
I am a citizen of the US, and I agree with your comments. It is most unfortunate that our media in the US has tainted the information about our offshore and outsourcing industries. There, interred with their bones, will lie the truth. There is no lack of work in the US due to outsourcing. In fact, additional personnel are trained in management positions and are earning better wages than before. More jobs ARE opening up. But, in the US we read that India and the like are stealing our jobs. MOST Americans believe it too! If I were to poll 20 of the people closest to me, 18 would say only bad things about the outsourcing industry.
Another shrill scream is the lack of quality provided in the call centers. Ouch. This is a real point of contention. Frankly, there is a problem with the customer service received. Unfortunately, US companies go for the best bang for the buck, and often forget the best value. Those call centers that have opted to invest in well trained and certified facilities with certified personnel are never disappointed. Not only are the US companies continuing these relationships, the customers of these companies DO NOT COMPLAIN. There is nothing to complain about. As an added benefit, the India company that has opted to follow the Standards and Certifications have better, smother running businesses with FAR LESS attrition rates. Best part, the bottom line is increased dramatically, and they offset any cost of the training by leaps and bounds.
So, what is the question? Why are these outsourcing providers NOT cleaning up their house? With every call that is not up to standards, the US populace hears about it 1,000 fold.
I personally went to India to start a training center, and found that there is already a superior entity in place. My shock is that the call centers are not using them. Get on the stick people. You have the business. It is your job to keep it.
I liked the different take on the outsourcing issue which is very well backed by a mixture of facts and quotes.Just adding my bit on outsourcing (rather globalisation) as such , I feel true globalised competitive market is realistic only when all the developed countries understand the need for them to open their markets for the developing counterparts. For all the same reasons why all asian emerging market started their globalisation act.