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Outsourcing of Low Paid Jobs
Is the outsourcing of low paid jobs to the developing countries a strictly positive development for workers in that country?
Introduction
In the business industry, outsourcing of jobs is the contracting out of some business processes which belongs to an organization to other firms in the same business field. The term outsourcing comes from the early American way of referring to it as ‘outside resourcing.’ Outsourcing sometimes relates to the transfer of jobs and other assets to other firms, but this is however in rare cases.
In the government, outsourcing may apply to the handing over of public services to private organizations for profit organizations. Outsourcing of jobs may be domestic or international. Sometimes, a business may decide to shift all its services from one nation to another due to their strategic or personal reasons. This process is known as offshoring. The main objective and main advantage of offshoring are that the financial savings from that results due to the lower international labor rates are used to the advantage and motivation of offshoring (GLEWWE, 2014).
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Thesis statement
The outsourcing to the developing countries the low-paying jobs is strictly advantageous to the development and a clear way forward for the employees in those particular countries. Is it, however, true that the step is positive towards change or not?
Reasons for outsourcing of low-paid jobs
There are several reasons why the outsourcing of low-paid employees to the developing countries is important. One of the most important reason the low paid jobs should be outsourced to the developing countries is that there is plenty of cheap labor in those states. The high rates of unemployment in those countries when accompanied by the low levels of illiteracy, leads to the availability of cheap labor (BEST, 2011).
Also, another important reason for the outsourcing of the low paid jobs to the developing countries is that businesses will have the ability and the feasibility of concentrating on the other main sectors of the economy that are crucial business processes. It will lead to expertise and specialization within the major business processes. When the output is quality when the low-paid jobs are outsourced, it should be considered an important factor (DIDNER, 2015).
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Benefits
The outsourcing to the developing countries is positive and hence, come in handy with several benefits. One of the most significant benefits of the outsourcing is the cost advantage. When outsourced, jobs can be done faster and that are of quality and cheaper. Outsourcing also saves on the expense of infrastructure since once the jobs are outsourced to developing countries, all the processes will be catered for by the organizations in those countries.
The cost of technology in the production is also lowered since the outsourced jobs will take care of themselves. It helps reduce the job expense in the already developed countries since the same quality or even a higher quality can be provided at cheaper prices in the developing countries (GLEWWE, 2014).
When outsourced, business products are realized to be efficient, sometimes even more than when produced at the original place. Outsourcing brings about expertise in the production of goods and services. Specialization in a certain field brings in the years of experience in working, thus bringing in the skills and thus delivering quality goods and services.
Access to skilled resources is also another significant advantage since the developing countries have new skilled labor that will provide energy to the industries. It will hence cut off the costs of training and recruit expertise (BEST, 2011).
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Advantages
On the positive side, the outsourcing of the low paid jobs to the developing countries is of an advantage, both in the developing, the developed countries, and the workers in those countries. To the developing countries, there will be more chances of job employment and hence light at the end of the tunnel of unemployment. It will bring income to the developing world and hence reducing the unemployment rate and poverty. More products and services will have also been brought closer to the developing countries and hence no much spending on the importation of goods and services (DIDNER, 2015).
On the other hand, the developed countries will have numerous advantages when the low-paying jobs are shifted to the developing countries. When the low-paying jobs, are shifted, they enable the countries to deal with the most crucial employment and businesses that need more attention rather than the supporting or the secondary ones. Thus, outsourcing allows the developed countries to strengthen their core businesses and processes (BEST, 2011).
When the low-paying jobs are outsourced to the developing countries, a country can be able to streamline one’s business and hence a sense of business direction to the nation. It also makes an organization more flexible to change, and therefore, a significant advantage.
The process also reduces the congestion and neglecting of the jobs in the developed countries and hence more space for development in the job sector. Sharing up of business risks is also a major advantage in the outsourcing of employments. One may not be in a position to withstand all the risks incurred in business and thus getting rid of the low-paying jobs is a significant stake (NAYYAR, 2013).
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Why the low-paying job outsourcing is a negative approach
On the other hand, the outsourcing may be a gamble to a developed nation. It is because of the many disadvantages of the outsourcing process. One main problem of the job outsourcing is the leaking and exposure of the confidential data belonging to a country or a nation. Since the secrets of a nation are the secrets of a country, outsourcing may be a dangerous gamble to the secrets of that particular organization. Also, although outsourcing proves to cut costs, the same process of outsourcing may be expensive since it involves two countries and hence higher costs (DIDNER, 2015).
The management of jobs in a different country may be difficult, due to various reasons such as the various government policies and the business policies of those different countries. Also, the employees in an individual developing country may lack interest in the job required for them to carry out. It may be a critical issue for the host nation and hence a significant disadvantage to the developed countries (NAYYAR, 2013).
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Conclusion
Upon conclusion, the outsourcing of the low paying jobs to the developed countries is a positive step in both the developed country providing the employment and the developing countries being provided with the job benefit as a whole. However, there are also disadvantages in the low-paying job outsourcing since the developing countries may lack interest in the jobs, or other inconveniences incurred during the process. Every country has to find the right partner developing the country to deal with to foster an affirmative positive action.
References.
GLEWWE, P. (2014). Education policy in developing countries. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=577472.
ZARRELLA, D., & ZARRELLA, A. (2011). The Facebook marketing book. Beijing, O’Reilly. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=414846.
BRAGG, S. M. (2013). Outsourcing a guide to– selecting the correct business unit– negotiating the contract– maintaining control of the process. Hoboken, N.J., John Wiley. http://www.books24x7.com/marc.asp?bookid=13990.
SPARROW, E. (20013). Successful IT outsourcing: from choosing a provider to managing the project. London [u.a.], Springer.
BAFFOE-BONNIE, J., & KHAYUM, M. (20013). Contemporary economic issues in developing countries. Westport, Conn, Praeger.
PULIZZI, J. (2014). Epic content marketing: how to tell a different story, break through the clutter, and win more customers by marketing less.
BEST, G. A. (2011). 42 rules for outsourcing your call center best practices for outsourcing call center planning, operations and management. Cupertino, CA, Super Star Press. http://www.books24x7.com/marc.asp?bookid=45349.
NAYYAR, D. (2013). Catch up: developing countries in the world economy.
DIDNER, P. (2015). Global content marketing how to create great content, reach more customers, and build a worldwide marketing strategy that works. New York, McGraw-Hill Education. http://www.books24x7.com/marc.asp?bookid=72496.
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