The United States of America Presidential election takes place this November and all around the world people are looking forward to see who will win.
The US has got the largest and many technologically powerful economy on the planet, with a per capita GDP of $46,000(according to the CIA factfile). Within this market-oriented economy, private individuals and business firms make the majority of the decisions, and the federal and state governments buy needed products or services predominantly within the private marketplace.
Offshore outsourcing was a hotly contested topic in the 2004 U.S. presidential elections. What about the 2008 election? Less. Offshoring, to date, has not went to the shortlist of points being debated through the would-be leaders this year.
Still some controversy continues to be raked up especially by president hopeful Barrack Obama who launched a tirade against firms that outsource jobs to India and China.
“We’re here since there are workers in Youngstown, Ohio, who’ve watched job after job after job disappear due to bad trade deals. They require us to finish those regulations which go to companies that ship jobs overseas” said Obama.
However the official US position is very different and the federal government makes it clear it’s looking forward to improve ties with the Indian trade establishment.
“It is very important for that US arrive at grips using the opportunities and challenges of globalization. US continues to invest in India and Indian investment continues to be important to the united states and so we’re open to the planet and that we are open to India,” Mario Mancuso, US Under-Secretary for Commerce said.
Obviously the BPO industry in India is least concerned about who makes it up position simply because they see outsourcing as an inevitable a part of a globalized era and as an irreversible process.
Abhilash M. Pillai, Assistant Manager-IT, SBL, says “As for that comments of some presidential candidates that individuals in US are losing their jobs due to offshore outsourcing, they have to think why US companies are outsourcing their services? For the reason that they find the correct staff with expertise at the right cost. As far as cost is concerned I don’t accept the point that outsourcing only depends on cost. US companies outsource their work with one more reason – they get their work delivered at the right time using the right output they expect.”
“I don’t believe it will affect our business because simply the (western) companies will be looking at their profits, tha harsh truth and savings and obviously the advantages that will accrue to them, therefore it should not affect us. It is my opinion because ultimately it amounts to this because the (US) government will make policies to favors their people but basically its supply and demand games the whole world is following and they (US firms gain advantage with better (profit) margins through outsourcing ,” said Arun Babu, a BPO employee.
“Especially the health sector is the most expensive sector as of now in the US so that they just cannot take back the offshoring of business. They have been getting a strategic advantage by outsourcing work to other countries plus they can not afford to lose it. If American wants to operate across the globe then they have to continue outsourcing as in the lack of it they cannot be a global leader,” said Murli Krishnan, Director, Medtek.
In fact reports show that even companies which towed a conservative line are now willing to experiment by going offshore to achieve an aggressive edge. This certainly shows how deeply the concept of globalization and outsourcing has become entwined in the fabric of today’s business.
India is still the leader because the first choice for an offshore destination, ranking at the top of A.T. Kearney’s 2007 Global Services Location Index and claiming approximately 11.5 percent share from the global market, based on estimates from research firm XMG. India’s advantages remain its talent pool, English-speaking population and government support.