Final Thought: Is outsourcing good or bad?

Being an Economic graduate, when asked about outsourcing, I cannot help but refer to the laws of comparative and absolute advantage. Although there is negativity around the concept of outsourcing due to job losses and unemployment, Adam Smith would argue that the utilisation of lower price labour and skills in poorer countries not only leads to more global equality but also increased profits for the host country that can be utilised for training in improved skills for the labour force.

What I was particularly interested in this week, was the initiative that Accenture, NASSCOM and the Dr Reddy foundation had set up. This was around the set up of comprehensive training and career opportunities in business process outsourcing for underprivileged youth in India, especially in rural areas.

Accenture and DRF would identify, recruit and train facilitators identified by NASSCOM. Accenture will also select potential BPO academy sites, based on job availability in those markets. Upon completion of the course, Accenture will recruit from among the graduates for its own BPO operations, and DRF will conduct follow-up workshops with NGOs.

With 74% of Indians residing in villages, BPO can bring a revolution in employment opportunities for the rural educated masses, and I wish the initiative the best of luck!