The newly elected president Barack Obama may have made his stand on outsourcing clear. Prior to the elections, he had gone on record to say that if he was elected as president of the USA he would minimize tax benefits to companies that indulge in outsourcing. This with a view of creating several jobs in America. This to me seemed more like an election gimmick.
Lets look at this problem from the grass root level. Why do companies in the US outsource their business to lesser developed nations like India. The primary reason is the cheaper manpower that these countries offer with better work quality. Not that this kind of talent is not available in the US, but it would simply cost a lot more. Now, if you had to bring these jobs back in the US, companies would have to spend more. A small tax increase would not hurt them as much.
With the current economic crisis in America, it is going to be really difficult to recruit such a workforce. Costs incurred in training is generally the highest and this would add to the already existing woes of companies as this newly recruited workforce would need to be trained. This entire idea about stopping outsourcing almost seems impossible. In my opinion, the BPO Industry is here to stay..
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Yes, the BPO is here to stay at least for the time being. America is definitely not in a position to stop outsourcing with its current economic status.
However we need to be careful, and be on top of the game, or else other countries like China, or in SE Asia may take away a good share of the business.
Irregularities in BPOs and their workers, was also a reason which made some companies to pull out of India, some time back.
Agrees with Pushpit on the context of Obama making election gimmick. Thats not just in this issue but also in many more issues..
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