Press Release Summary = Outsourcing job will not destroy US jobs. Period.
Press Release Body = Do we need to be scared for outsourcing of jobs? Will this destroy US job market? These types of questions are now worrying nation’s economists. Henry Watson has attempted to answer these questions while National Outsourcing Association warns users to outsource jobs blindly to reduce the labor costs.
While reversing the outsourcing job is the talk of the town, some industry scholars are of the opinion that there is no fear in outsourcing, They believe that key services offsite should not be considered as threat. “‘There is no greater risk involved from outsourcing most services from a distance than there is having the person next door. Having said that, however, the underlying point is a very valid one”.
“Let’s put it in a different way. It is less risky in delivery unless you get the right partner and put it in the right control mechanism and get the right people, there should be no reason for feeling greater risk than if you were to have it in-house,” sources said.
Henry seemed to be accepting that outsourcing deals do fail sometimes. But he asserted that quality of service was never compromised on outsourcing projects. His point on the success and failure of outsourcing was clear that “if we didn’t deliver quality, introduce latest techniques in processes and motivate quality individuals, then we wouldn’t survive.”
Cost effectiveness remains the major reasons for outsourcing, however, not the only one. This was shown in the recent survey of intellectuals of the industry where 48% said that they were not convinced that outsourcing would save labor cost drastically.
However, Henry believes that the major reason of outsourcing the job is saving on cost and this remains undeniable fact. But he has also suggested that might change because outsourcing could help add value too. “If you get a good IT partner who can launch products into the market, cut down production time and distributor chain system thus it will have a direct impact on competitive advantage,’ he said.
‘Outsourcing is going to be a cyclical process. You start off with cost reduction and once you get control on basic operation then you think how can we turn this to add value. Hence you must not have fear in outsourcing,’ he added.
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2012
