Friday, August 19, 2005

Software Outsourcing- A Boon or Bane for Americans!!

“People who work sitting down get paid more than people who work standing up.”
- By Ogden Nash.

According to PTI, combined India and China amounted to just 1.6 per cent of the total employment of US multinationals. American companies have benefited from outsourcing. Outsourcing jobs to India have helped US companies to compete with their competitors better.

Since this being a popular belief that all the jobs form US are being shifted to India and other parts of the world, there are evidences that support how Software Outsourcing is a boon for Americans. It’s the US citizens who need to realize this real fact and take advantage of the right opportunities. Overall job employment in IT service outsourcing is rising, not falling.

Workers have been freed up from routine tasks by outsourcing work to India. They are often redeployed within the organization to higher paying jobs\projects generating greater value-added services or products. This will yield even stronger job demand in the United States for workers with IT proficiency and skills. The U.S. Department of Commerce reports that, in 2003, the United States bought $77.38 billion in services from foreign countries and sold $131.01 billion to them. Thus, we exported nearly $54 billion more in services — including legal work, computer programming, telecommunications, banking and engineering — than we imported.
For instance if one carefully realizes the fact that real estate cannot be imported but most of the building technology and many products are imported by India and other parts of the world. There are appliances, equipments, technology etc required to furnish houses are exported to U.S. The cars and their accessories are mostly imported.
People from India and other countries prefer consumption of these American products. They are hooked to financial services like American Express, entertainment from Walt Disney, and among others include brands like Colgate-Palmolive, Gillette or cosmetic products from L'Oreal to name a few. And have you ever realized that from where these Hollywood movies come from in India. And where from is this movie-making technology in Bollywood movies come from? Of course, from US only. The technicians are educated and trained in the US.
There’s a craze among students for education from American Universities. Even it is these high-salaried Indians who eat McDonald's food, drink Coca Cola or Pepsi and order pizza from Domino's or Pizza Hut. Isn’t this like being addicted to something that doesn’t really carry a stamp “MADE IN INDIA”?
Have the Americans ever realized that how all this trade and business is going to facilitate quite a lot of consumer good industries that have reached market saturation in the US and find new markets to grow, without which they would not have otherwise survived.

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