Offshoring – It Isn’t Bad At All !!!!!!

There has been a lots of debates over off-shoring and I think it will continue till it becomes a way of life and is accepted by one and all. Yes, I do believe that it will happen eventually like everything including globalization (remember GATT – General Agreement on Trade and Tariff). Isn’t offshoring – an offshoot of GATT. Well that’s for another time but I am tempted to say that developing countries had been cautious about the buzz of globalization but it had, in atlease India’s context, as a whole appeared to be hoax to a large extent. The problems are there but they are not a threat. I am quite optimistic that there may be problems linked to offshoring too but it will never be a threat to the developed countries’ economies.

Infact, what I think and is ratified, then and again, by the law makers who refused to pass any sanctions against offshoring, is that Offshoring has actually brought more opportunities to the developed countries. I collected this information and am presenting it here: (I have been jotting down the points for some weeks now, the source of this information remains diverse from discussions with friends and the Internet.)

The developed countrie’s economy gains from offshoring in terms of:

Ø Cost savings to businesses – (very obvious – that’s synonym with offshoring)

Ø The cost saved from offshoring is deployed in other avenues which generates more business or brings more competitiveness

Ø Increased exports (leaving apart a few things (including printers/softwares and other accessories), the one thing that offshore partner needs to have is the computer. Who provides these things to it – the US multinational companies like Dell, Intel, HP etc. So these companies get more business and hence bring more prosperity to their countries)

Ø It is always debated that offshoring involves migrating the low end jobs but this also means that the persons who are affected by offshoring are more likely to have new skill and move up the ladder. This again helps to create a skillfull resource pool and probaly higher productiviy.

Ø In many of the developed countries (unlike US but like Japan), the aged populatin is increasing so this means the shortage in their working population. The offshoring will be a “killer” solution to this problem.

Ø Offshoring don’t come with tough labour laws

I think this debate will continue till some other phenomena pre-occupies us and I hope that it is not the WAR(s) not even the ones against the so called “rogue” states…but again that’s for another time...

I may have to travel back to India this week but I have started liking Brussels, more because I am here with my fiancee hmmm…. But Brussels is definitely is good city….thats for another time… J