Job Outsourcing's REAL reasons ??? Watch

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j4mes_bond25
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#1
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Bearing in mind the recent rather popular getting trend of outsourcing of job, I wonder as if anyone can enlighten me with firstly the REASON for doing so ??? Surely cost-efficiency can't be the ONLY reason for company doing so, as if that was the case, they would've done it years ago, rather than considering this outsourcing option over the recent years, I believe.

Is there any political reason behind it, perhaps, due to the government's policies on taxation, National Insurance levied on these businesses like say Dell computers, HSBC bank, etc. but then again, I wonder, even if that was the case, such a big company earning in millions, should be able to find this burden of taxation, etc. quite affordable ??? What other political reason (or indeed, any other reason) can be given serious consideration to, for such a trend ???

I would also prefer knowing & discussing the advantages & disadvantages of this trend, not just to the company itself or to the call centre staff in different countries, but also to the government.

By the way, after making myself aware of the existence of some website Forum set-up by an American especially designed for people bragging on about the abuses they've contributed to, when calling these overseas call-centre, I wonder, if anyone around here in TSR knows this particular website ???
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Fusion
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a) more attractive business tax rates in other countries
b) cheap labour forces and cheaper operating costs (rent etc)
c) all in all results in bigger profits
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j4mes_bond25
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(Original post by esx77)
a) more attractive business tax rates in other countries
b) cheap labour forces and cheaper operating costs (rent etc)
c) all in all results in bigger profits
Should it ONLY be just profit that matters ??? I'm yet to experience a single example of a wonderful "customer service" from these people calling me, I fear :rolleyes: & if I'm not satisfied with service (like many more around) then surely, I could just sign-up with someone else, which will then end-up as these companies still losing out, I should imagine :rolleyes:

As far as I've seen, customer wouldn't mind paying more for the service, as far as they get SATISFACTION out of it.

But I wonder, these advantages were available ages ago, as well, then why didn't businesses fancy shifting their operations abroad, earlier rather than ove the recent years. I believe, surely there must be something to do with Government's policies with businesses, here & I fancy knowing EXACTLY what these policies are & the comparison of such policies with the policies that was in place before Labour came to power :rolleyes:
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Howard
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It's cheaper.
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j4mes_bond25
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(Original post by Howard)
It's cheaper.
I can imagine this rather obvious logic :p:
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Bismarck
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(Original post by j4mes_bond25)
Is there any political reason behind it, perhaps, due to the government's policies on taxation, National Insurance levied on these businesses like say Dell computers, HSBC bank, etc. but then again, I wonder, even if that was the case, such a big company earning in millions, should be able to find this burden of taxation, etc. quite affordable ??? What other political reason (or indeed, any other reason) can be given serious consideration to, for such a trend ???
The main objective of any company is to maximize profit. They do not care about politics (in so far as it doesn't effect them directly). "Outsourcing" in manufacturing has been taking place since the '70s. when the relative productivity of the workers in developing countries, such as Japan, South Korea, Taiwan, Mexico, etc., became greater than that of their Western counterparts in some low value-added industries. This was made possible by the abandonment of many socialist policies by the developing countries, the lowering of international tariffs, lower transportation costs, weakening of unions, and many other reasons.

The latest round of "outsourcing" has taken place for similar reasons. The difference being that many of these tasks have been in the service sector, which means communication technology had a large role in bringing this about. It is not a coincidence that the rise of the internet came at the same time as the rise of Bangalore.
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_poptart_
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yeah, the only reason why outsourcing hasnt always been done is because the communications revolution hadn taken off sufficiently. And I guess another reason is taking advantage of the benefits of the host country like the obvious cheaper land,labour and less strict working regulations.
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