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Why Politicians Wouldn’t Act Against Outsourcing ;)

Outsourcing is one of the fastest growing trend of our times and is nearly unstoppable. The cost of operations is rising and hence the companies mainly from the west have started to look out for better alternatives, to get the same job done at fraction of a cost and help them survive these tough times. Asian countries like India, Philippines, China, Bangladesh, etc have emerged as popular destination for outsourcing such work.

 

Investors of most of the fortune 500 companies are keen to save all the extra costs and keep the company’s balance sheet in the best of its health. As a matter of fact it is these investors which many a times force the biggies to outsource and cut on the cost of operation to stay profitable.

 

Remember, these investors are the same set of people who finance political parties too. So the hue and cry about outsourcing will continue but will be without any drastic measure. The stark reality is outsourcing is need of the hour, even politicians can’t mess with it. At the maximum, they can do some lip service or take some cosmetic measures to appease the voters but nothing substantial. Voters too need to pressure their government to create more jobs rather than stopping outsourcing.

These are tough times and companies need to think a lot about how to stay profitable quarter after quarter. The pressure to meet the market expectations is another factor which forces these companies to offshore. If the company is able to meet its quarterly targets only then the stock markets behave in a favorable manner. A positive market sentiment is must for these companies to keep growing and not just survive.

Instances of opposition to outsourcing will only arise when the mangement see the process as flawed or hastily contrived or fail to deliver the kind of savings which they expected it to.

 

Companies are choosing to outsource purely to cut costs and leverage the increased capability to focus more on core competence. That helps them stay competitive and improve productivity.

 

In this election year, we will hear many voices against outsourcing, but we don't need to worry too much about it. Things are going tough (even the occupy wall street protesters, demanded to bring the jobs back), however, IMHO, better sense will prevail, emotional decisions will not be taken. Despite of all the negative pitches which will get intensified in the times to come, outsourcing will continue as ever before and no attempts will be made to reverse this trend.

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Tags: bpo, business-process-outsourcing, election, outsourcing, outsourcing-services, politicians, politics, us

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Comment by Phani indra on December 23, 2013 at 6:25pm
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Comment by Alex Marshall on May 10, 2012 at 6:13pm

Yes definitely everyone of the persons who is going to set up its business would plan for outsourcing its various business activities from the day one, however it wasn't the case a decade ago.
BPO Services have become far more essential for any business regardless of its field or nature. Then how could a government can act against outsourcing...?

Comment by AJAY DUBEY on May 10, 2012 at 12:31pm

Government should not oppose outsourcing. Outsourcing is beneficial in various ways it helps the companies to cut costs and utilize the manpower of their company as well as it provide employment opportunity to a great extent.

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