An old dilemma: Offshore outsourcing vs. labor market. To be or not to be? – to outsource or not? The opposers are of the opinion that outsourcing produces unemployment. It is quite easy to say. In fact, outsourcing lets to improve the situation on labor market. Let’s analyze the findings of one of the latest studies.
A research team led by Professor Beatrice Weder di Mauro
from the University of Mainz
has come to the result that if companies outsource jobs to other destinations, that has below the line no negative impact on employment. How can that be?
Let’s examine a simple example: If you let somebody wash your car, that saves your time which can be used for other activities (e.g. to enlarge your production). Outsourcing
your work to a specialized party means getting it done faster and better. And focusing on what you can do the best makes you able to be creative, to bring excellence into your work – in a shorter period of time.
Companies which use outsourcing
are more productive, are able to possess more market shares in their home country and abroad and employ more personnel.
Of course, certain jobs get outsourced in order to be done by offshore vendors. However, it will be overcompensated as companies – achieving higher productivity – create new jobs.
offers a possibility for technologically backward companies to restructure their processes and operations. Therefore: New jobs, increase of competitiveness and possibility to generate innovations are to be expected while outsourcing operations.
The other important point is, outsourcing makes it possible to establish successful companies in poorer countries, which grow fast. Many of them are able to become multinational giants after just a few years of continuous growth and then they create jobs in these countries which have originally outsourced them. And the old (clever) sentence holds true: “What goes around comes around” – doesn’t it?