Outsourcing vs In-house Processes

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Outsourcing vs In-house – Is It Really A War?

With the rise of BPO demand comes anti-outsourcing sentiments from traditional American workers. The sudden expansion of businesses employing offshore staff and the unexpected increase in unemployment in the United States has ignited criticisms against companies hiring abroad. Demands for hiring outside the US has developed not only because labor abroad is increasingly becoming cost effective – especially in India and in the Philippines, but also because offshore talent is becoming more and more competitive.

Americans are not happy with having more and more jobless citizens; while they see third world countries intensify their employment statistics. As a matter of fact, the US Congress is set to vote on the “Bring Jobs Home Act” bill, which, as obvious as its title states, plans on leveling the battlefield between in-sourcing and outsourcing by ending tax breaks for companies who hire offshore employees. It also sweetens the deal for companies who are already outsourcing by giving them tax credit equal to 20% of the cost needed to “bring jobs back home”.

But is it really a battle between traditional employees and outsourced staff? It’s probably more about politics. As we all know, it’s election year and candidates are lobbying for attention and sentiments from American voters. We all know, companies don’t vote.

Should companies deeply reliant on outsourced talent and BPOs need to worry? Probably not. If you could remember, back in the 2004 and 2008 elections, there were similar efforts to “bring jobs back home” by American Congress. Nonetheless, they were thwarted by huge corporations who lobbied hard against the idea. Well, you see, businesses in the US highly regard their outsourced departments because it allows them to stay internationally competitive regardless of the US’ current financial woes; and the government knows that. The US government also knows that without these corporations and their globally competitive efforts, the whole ship goes down. No companies, no jobs, no economy.

BPOs aren’t stealing jobs from Americans; the idea is that these outsourced resources are suppose to help in-house workers. These are not existing jobs taken away from the US; these are new jobs given to new workers, regardless where they are. Outsourcing is an opportunity to expand American businesses and increase productivity amongst an organization’s co-existing departments. It’s not a war nor a battle. It’s just a misunderstanding, kindled by low ball politics.


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