There is no doubt that outsourcing has become quite popular these days because of several factors. Apart from the geographical advantage, the employees are smart, hard workers in addition of high level of education. As known to all, the cost of operations, are very low as compared to, in the western countries. Given these factors outsourcing does make a good business sense. However how far outsourcing can help the west beat recession is definitely a thoughtful question. A lot of people may not be able to answer this question directly but at least a majority believes that it is possible. In this case companies in the west are facing a dilemma. Outsourcing to India (and other low cost destinations) means transferring those jobs which could have employed local western youths in their countries. This is already a matter of debate in many western countries.
Staying Competitive Is Important
At present the economic situation is really gloomy. Hard hit by recession, a lot of companies have already filed for bankruptcy. Those afloat are somehow managing to survive. However, there are companies that are still doing well. These are the ones that are laying a lot of stress on staying competitive. For this they are cutting down on costs but still running their core and non-core operations to their full potential. How they are doing this when the global economy is fighting a losing battle against recession? The answer is simple. These companies are outsourcing their non-core operations to third world countries like India where costs of operations are quite low but quality is at par with international standards.
Overcoming the Dilemma
Although government policies are being formulated in the west to protect local jobs, however, if a company follows such policies it loses the opportunity to remain globally competitive. With their huge scale of operations along with rising costs it becomes difficult to sustain. Therefore outsourcing to countries like India is the only alternative where skilled and affordable manpower is abundant and costs are low. Compelled by recession companies are outsourcing because at the moment that is the most viable alternative to stay competitive.
In this economic scenario the main focus of companies is to cut down on operational costs anyhow. Although the government at the behest of the general public will continue to create policies with the objective to protect local jobs yet companies may not toe the line as they are more concerned about the profitability part. Companies will continue outsourcing at a rapid rate to save on costs to remain in business.
There is a possibility that to please both sides companies may further categorize their non-core operations so that they can keep a part of it for local aspirants and the rest they can outsource. Regarding whether outsourcing will help the west to beat recession ,it can be finally said that, the notion holds promise.