Friday, August 13, 2004

Counteracting "Outsourcing"

Offlate there has been much more than expected backlash in the name of Outsourcing .Though it is very necessary to get the exact picture in the front of the our eyes before we can actually argue about the pros and cons of Outsourcing.As the term suggests, outsourcing is a very strategic function of the business plan, a businees decision that has been implemented by various big firms at various times.then what is there in this outsourcing that has fired up so much trouble than the bigoutsourcing phenomenon in the 1960's in the automobile industry which was , we can say , the beginning of the industrial age in the Asian continent.But surely there must be something this time that has aroused so much public attention that you can actually see people wearing T-shirts with Anti- Outsourcing slogans in the streets of New York. If we look objectively at the problem , there does not seem to be much problem. It is infact a phase of the US economy which will pass on.And come to think of it , the US industrialists and big men are not even bothered about this problem. What has been the root cause of so much public agitation is the propaganda and the light that it has received.And the only plausible reason for that may be the forth coming US Presidential elections.But whatever be the reasons , we are not sitting here to think of the reasons , rather we are here to think proactively and come out with something that can help us in overcoming this phenomenon.And when we think about thinking hoe to win the race , we actually do something that helps us in winning the race. If the US has to overcome this phenomenon , it has to look deep into itscavalry and find out what actually made countries like Malaysia , Argentina ( leave alone Indiaand China, I will be discussing about them later on in the next article !! ) get the work which was done by the big engineers in the US.What has happened in these countries is the rise of a new generation , a generation which is educated and which is willing to work and work much more. Naturally the US big men save a lot when they actually give their low end works to these people at a fraction of the cost of a US engineer.That in place, the small economies start taking things into their hand. They want to show their worth , people their want to work for the big firms . And why not will they work for 12-14 hours a daywhen they are getting 30% more than their counterparts in the other native manufacturing companies. It seems at the first point , that in a given period of time , the US economy will have no jobs exceptfor the posts of CEO and Presidents. But then we have to wait and think . And when we think , then the first thing that comes to the mind is the progress of the US economy .If the US is out sourcing all these lower endjobs to the other countries , then they must have a plan wherein the people as a whole will undergo a radical change in their skillsets.And for that to happen they must have something to resort to . And what better than to hone up their R & D and come up with the new practices in each and every possible field.what matters is not the execution of a test plan but the plan itself.So if US has to remaina leader in the business sector , it will have to come with innovative methods and optimum practices for the production. The US feels that has been and will remain a leader in the market by virtue of its till now sustained positionin the market in all these years. But the US economy must beware at this moment. It is hightime that the US knows what to do to maintain its position in the market.In the next article, I will be discussing about the position of India and China vis a vis US and the strategic factors involved.

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