economic crisis migration

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economic crisis migration
economic crisis migration

The Impact of a Changing Political and Economic Environment on Outsourcing

Since the early stages of the 2008 political campaigns in the United States, outsourcing stood out as a controversial and politicized topic. Politicians voiced their concern over outsourcing and its adverse impact of moving jobs to foreign destinations. According to Alsbridge research, over 80 percent of the business process outsourcing and call centers in India are owned or controlled by U.S. companies. Naturally, regulation leaning toward discouragement or even an outright ban of outsourcing would be devastating to the industry and local foreign economies.

However, as the election campaign moved on, remarks that were voiced against offshoring/ outsourcing started getting milder. Even the strongest opposing voices started saying, “Outsourcing to India and China is irreversible,” which brought relief to millions of call center and BPO employees. However, the mood and sentiments changed again during the last leg of the campaign and various measures like tax benefits and incentives were promised for the industries not opting for outsourcing. The growing rate of unemployment in the United States is most definitely concerning to everyone, but the million dollar question that still remains unanswered is, “Will outsourcing be banned?”

The majority of experts feel that the “anti-outsourcing” message is well-received by the public during electoral campaigns, but putting these words into action may not be all that simple. Ganesh Natrajan, the chairman of the National Association of Software and Services Companies, says, “We should not worry about any ban on outsourcing, as it is just not going to happen. Incentives to job creation in America will be helpful in retaining jobs in America, but it should not have any adverse impact on [the] outsourcing industry.” Another way of looking at this situation is to answer some simple questions. Can America afford to lose billions of dollars they save every year from outsourcing jobs to foreign destinations? Will anyone take such a step that will hit the American economy the most during this precarious time of global meltdown?

American business understands the importance of outsourcing to the American and global economy and the level of cost relief provided by information technology, information technology enabled services and BPO sectors. The bottom line continues to be the same – in order to remain competitive, the American industry must continue to migrate repetitive and non-core functions offshore while continuing to innovate and grow the core businesses.

About the Author

Pranay Shukla is a Consultant with Alsbridge plc, the independent advisory firm that helps organizations conduct thorough evaluations of outsourcing options for operating their information technology, finance and accounting, and human resources organizations.

Do all of you realize that there is only one real issue?

climate change, atmospheric CO2, and the massive migrations due to rising sea levels, diminished water supplies, flagging agriculture and the resulting wars? Your concerns about an economic crisis will seem petty in less time than you can believe. The evidence, the studies, reports from scientists, The World Bank, The UN, the US DOD, all over the internet point to firmly to this conclusion.
Freedom Rocks: 50 years is the near future, don’t you care about your children and grandchildren
Bob_fran: I mean in the near future, you idiot
Robin: flush them right into your back yard…where do you think those people are going to go….and they’ll bring there cultural trash with them
jumpinja: sounds like your like most people who do not understand that global warming and weather are not the same thing

I see and recognize your point but this important issue is tight in like most other issues, war peace, social inequality with what I consider the most important issue, the absolute failure of the for profit system and the need for humanity to move beyond it. I maintain capitalism is the root cause, the real issue, including of this problem and the greatest barrier to carry out a real solution. The truth is yes climate change is serious but in this system a real solution nearly impossible. Virtually all alternatives offered and promoted by the industry and their political representatives only serve to continue their interests. When the need to make profit which is unavoidable in the current setup is thrown out we have the technology and resources to stop using fossil fuels today without giving up any luxury

The irreconcilable conflict between the profit system and the very survival of humanity finds, in a literal sense, its most noxious expression in the crisis of global warming and the natural environment. The cause of this crisis lies not, as is falsely claimed by the bourgeois media, with population growth. Nor is it the result of science and technology – whose development is critical to the advance of human civilization – but, rather, with their misuse by an irrational and obsolete economic order. The impossibility of finding a genuine solution to the increasingly critical problem of climate change and other environmental problems within the framework of the profit system is an “inconvenient truth” that bourgeois politicians – even those who profess concern for the environment – deny. All scientific evidence points to the fact that nothing short of the socialist reorganization of the world economy – in which the planetary environment would no longer be held hostage to either the profit motive or destructive nationalist interests – will achieve the reductions in greenhouse gases necessary to prevent disaster.

* Almost half the world — over 3 billion people — live on less than $2.50 a day.
* The GDP (Gross Domestic Product) of the 41 Heavily Indebted Poor Countries (567 million people) is less than the wealth of the world’s 7 richest people combined.
* Nearly a billion people entered the 21st century unable to read a book or sign their names.
* Less than one per cent of what the world spent every year on weapons was needed to put every child into school by the year 2000 and yet it didn’t happen.
* 1 billion children live in poverty (1 in 2 children in the world). 640 million live without adequate shelter, 400 million have no access to safe water, 270 million have no access to health services. 10.6 million died in 2003 before they reached the age of 5 (or roughly 29,000 children per day).
I can’t accept and will never accept that’s simply the price to pay so that I can have three cars or buy a new cell phone every week, yet that’s the capitalist reality. Those who defend capitalism defend this inhumanity


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