My Day

Tuesday, November 13, 2007

Outsourcing: An international Perspective

Since my childhood, I had a impression that USA is a land of innovation and opportunity. Whenever I saw white tourists in my neighborhood, my eyes had a different view of looking towards them. I had the impression that he must be really rich, as his single unit of money was worth nearly eighty units of my money. I had heard about people getting rich just by guiding tourists around the city. Then I kind of decided to earn my wages in dollars, luckily my education and my dad’s economic condition was good enough to bring me to USA for college education.
I come from a developing country to US to get a “US degree,” which is very renowned all over the world and can sell for a very good price. Whether I am in USA or any part of the world, US college degree works it magic. If I was in my country and earning the same amount of money I am earning right now (even as an intern), I could live a very high standard of living with that money in Nepal . The cost of living is very low in developing countries than it is in USA. But on the other hand, income is ridiculously low for the same degree in the developing countries. This fact is very well known by American companies, so they are buying the cheap labor of developing countries in a wise manner, which Americans call Outsourcing.
Outsourcing is mutual. The wage that US based companies offer people of developing countries is reasonable for both parties. Suppose a US based employee asks a certain wage for doing some kind of job. If the company outsources the job, the overseas employee is very happy to take a fourth of what the US based employee had asked. With that money he can live a very good life there, as it is almost four times the wage he would have got from a company in his country.
Thinking from a different angle, American companies are using all the innovative people of other countries to work for them. Though all the hard work is done by a person of a different country, the credit goes to the American company. So is it leaving a positive or negative effect in the US Economy?
I think outsourcing is only a practice of open international market. We import cheap electronics from China; many clothing stores import their product from different parts of the world. If somebody thinks outsourcing is putting a negative effect on US Economy, they should also think twice before buying any product that is not made in USA.
I think outsourcing doesn’t take away the jobs from US job market, but it provides more free time and resources to US based companies to spend on innovative ideas and new inventions. If the manpower in US companies were stuck in the same old job that could be done by a cheap employee offshore, the technology wouldn’t grow as fast as it is right now. So the people working for American companies offshore are not really invaders, but are helping hands to make America always on the top in the field of technological innovations.

1 Comments:

At 2:36 AM, Blogger Greame said...

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