Outsourcing White Collar Jobs

In the recent times outsourcing of white collar software, accounting and product development jobs are being seen as a threat to the US economy by many tech workers, unionists and contract workers resulting in large scale protests. But is the situation really so grave? People are always rigid to changes and outsourcing of white collar jobs is being seen as a threat only because of the fast pace at which things are happening.

What do the experts say?

Economists compare the present to the information technology revolution of the nineties when thousands of high paying manufacturing jobs were cut off and people were laid off in huge numbers. Cynical though people were at that time, the situation turned into bringing better and higher quality jobs into the economy. And similar is predicted the fate of outsourcing call center and other IT related jobs. Some are confident that outsourcing of white collar jobs to foreign lands will create better and higher paying jobs in the US economy while others are still speculative. And in the midst of all this, biggies like IBM, Microsoft etc continue to send their white collar jobs offshore.

To a common man the situation many seem grave and the future bleak, but to an economist this is just another evolution that will do nothing but benefit the economics of developed as well as developing nations in the long run.

Is Outsourcing inevitable?

Outsourcing is an economic evolution that does nothing but improve the economies of countries taking part in it. Workers in developing nations get better paying jobs which increases their standard of living in turn improving the countries economy and in a similar way companies in developed countries get cheaper and better labour that helps them cut costs, expand, innovate and serve the customers better. Thus outsourcing American jobs in the long run is sure to benefit both economies in a major way. And as history holds proof, in the long run as jobs more overseas new, innovative and higher paying IT and non IT jobs will come up in the US economy due to increased economic activities. 'Global Insight' a research firm has said that outsourcing will add $124 billion to the US economy and create 317,367 new jobs.

Outsourcing white collar jobs such as IT outsourcing and outsourcing software development will also increase the US gross domestic product or GDP as time progresses. So speculations apart the world economy is evolving and every one seems to be benefiting through outsourcing of jobs in one way or the other.



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