Wednesday, June 11, 2008
Effects on the Host in Offshore Outsourcing
In this 8-minute video on Offshore Outsourcing as viewed by an academic, Professor Bhattacharya said one thing that struck me. We talk a lot about offshore outsourcing and how it has a positive effect on the companies that do employ this. We have broken down the good points of offshore outsourcing but exactly does it do the host country?
Prof. Bhattacharya wanted to talk about outsourcing in China when it comes to manufacturing but couldn't because of language and culture barriers. However he was able to give a brief overview about the leading host country in IT services, which is none other than India. In my opinion, growth has a possibility of being inhibited if host companies keep depending on outsourcing as a source of work. That's why I think it's good that India is actually developing their own ways and reaching out to other countries for their own brand of offshore outsourcing business functions.
As for hosts like China and the Philippines, we have yet to actually see them reverse their situation and develop their own methods to export to other countries but perhaps in time we will see call centers set up by the Philippines in areas other than their homeland and consequently giving jobs to other host countries.