Impact of outsourcing on Indian society

Outsourcing makes a wonderful contribution by delivering more jobs and awareness about the
external world. However, we need to be careful of the depletion of our own value systems and
customs.

OUTSOURCING IN INDIA has experienced explosive growth with overseas companies getting
everything from their customer support work to tele-radiology done here. It is one of the most
discussed topics at present. Its impact can be felt in different areas and spread over several
countries.
 
The impact of outsourcing on economy is largely discussed. However, there are few people who
are really interested or consider the impact of outsourcing on the society. If we talk about Indian
society, then definitely one can notice and observe the change brought by the outsourcing
services and institutions.
 
Being world’s second most populated country, human resources are a boon by itself, in India.
Just as the Gulf is renowned for its natural resource of crude oil, India is proud of the abundance
and easy availability of its qualified and skilled professionals; who happen to be the key to
success in several fields including Information Technology.
 
Outsourcing can be both beneficial as well as harmful to the society. This industry, which booms
in metro cities, has caught hold of what can be called as the jugular vein. Its role is somewhat
restricted to the developed cities only and can be least found in the villages and remote areas of
India.
 
Outsourcing industry has improved Indian economy primarily by employing a large number of
people and building and maintenance of infrastructure. It is because of the outsourced projects
that people at large in India get opportunities to know and work in multi national corporations.
 
BPO companies also provide ample opportunities for women and as such help them in their
liberation and liberalization. There is a good percentage of women workforce employed in the
outsourcing companies in the cities. The role of women has consistently changed and they can
better take care of their finances and their career.
 
Meanwhile we are also losing on several cultural and traditional benefits. The outsourcing
companies and projects emphasize on the foreign cultural values, the place from which the
original project has been outsourced. The holidays, the work culture, day-to-day dealings and
more tend to lay greater importance on the social norms that are not part of our system, our
community. We are slowly adapting to the change, accepting the dominant culture and yielding
to such values, which we have neither assigned, nor have they come from our own social
domain.
 
Nevertheless, people should appreciate the fact that more people are employed and loads of
opportunities to learn new and exciting things working in BPO sector are available. If we resist
the intrusion of the values and keep our professional lives at distance from our personal lives, it
will serve better and help us in the long run.
 
If we can get the best out of these two worlds, these two societies then its for sure the best
associate oneself with.
 
http://www.merinews.com/article/impact-of-outsourcing-on-indian-society/124258.shtml

T industry shrugs off Obama's rhetoric against outsourcing

OBAMA SPEECH

The US President, Mr Barack Obama, has once again set the cat among the pigeons. In his first
State of Union address, the US President reverted to the anti-outsourcing stance that he had
adopted during his election campaign.

The bad news in his speech for the outsourcing industry is that the US Government would end
tax-breaks to American firms that chose not to keep jobs within its borders. “…to encourage
businesses to stay within our borders, it is time to finally slash the tax breaks for companies that
ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the
US,” he said.

Mr Obama's speech — that strikes a populist chord — comes at a time when the US job market
has been slow to recover from the global financial crisis; unemployment remains at 10 per cent.
However, the $50-billion Indian IT industry chose to play down the protectionist undertones of
the speech. Software companies association Nasscom said that ending tax-breaks for companies
that ship American jobs overseas would hardly impact the tech and BPO (business process
outsourcing) sectors.

“This has nothing to do with us. The statement seems to be in the context of profits that US
companies make in overseas operations and subsidiaries… It does not have any bearing on the
tech and BPO industry,” the Nasscom President, Mr Som Mittal, said. “The move to incentivise
companies that create jobs in the US is fully understandable…But in my view, it will be difficult
to impose tax on companies that ship jobs overseas,” the Vice-Chairman and CEO of Zensar
Technologies, Dr Ganesh Natarajan, said.

Echoing similar sentiments, Mr Lakshmi Narayanan, Vice-Chairman, Cognizant, said that all
companies (including Cognizant) have been looking at ways to create new jobs in the US. “I'd
much rather see incentives for keeping jobs inside the US, rather than punitive action for those
that ship jobs outside,” he said.

In any case, the issue would not have a great impact on the Indian IT industry, he said.
“Companies get tax benefits on the funds they repatriate back from overseas operations. The
difference is minimal. In the worst case scenario, those who are thinking about offshoring for the
first time may decide not to go ahead. Those who have already tasted the benefits of offshoring
will continue. We see that from corporations whose decisions are based on economics rather than
legislation,” he said. (With inputs from Mumbai and Chennai)
In a move that could shake the foundations of India’s IT services industry, US President Barack
Obama said he will end tax breaks to American firms that ship out jobs abroad.
.
‘To encourage ... businesses to stay within our borders, it is time to finally slash the tax breaks
for companies that ship our jobs overseas, and give those tax breaks to companies that create
jobs right in the United States of America,’ he said in his first State of Union address.

‘Now, the House has passed a jobs bill that includes some of these steps. As the first order of
business this year, I urge the Senate to do the same... People are out of work. They’re hurting.
 
They need our help. And I want a jobs bill on my desk without delay,’ he said. India, which has
earned the name ‘world’s back-office’, could suffer the most by this move.

According to software services industry body NASSCOM, IT sector’s revenue accounted for 5.8
per cent of India’s gross domestic product in 2008-09, up from 1.2 per cent in 1997-98.

American companies primarily move jobs abroad to save costs, with no dent on services as
countries like India boast of an English-educated workforce — be it IT engineers or for jobs that
had to be done over phone.

‘But the truth is, these steps won’t make up for the seven million jobs that we’ve lost over the
last two years,’ Obama said.
 
‘Because of the steps we took, there are about two million Americans working right now who
would otherwise be unemployed,’ Obama said.

He said job creation would be be the country’s number-one focus in 2010, and called for a new
jobs bill. The bill will provide for taking $30 billion of the money Wall Street banks repay and
use it to help community banks give small businesses the credit they need.

‘Now, the true engine of job creation in this country will always be America’s businesses. But
government can create the conditions necessary for businesses to expand and hire more workers,’
he said.

He also announced that US would invest massively in skills and education of its people. ‘Still, in
this economy, a high school diploma no longer guarantees a good job...To make college more
affordable, this bill will finally end the unwarranted taxpayer-subsidies that go to banks for
student loans,’ he said.

Bangalore has become known as a place for outsourcing,

costing many American jobs
President Obama has mentioned Bangolore, a city in India known for its economic boom, because of its
role in hurting America's economy.9 Nov 2008 ... The fear stems from President-elect Barack Obama's
many campaign statements ... he said in a campaign speech in Dublin, Ohio: "We're going to take away
tax ... He may have mentioned Bangalore, but does Obama really have the IT and ... His Ohio speech
mentioned above was prefaced as follows: "You are The fear stems from President-elect Barack
Obama's many campaign statements that ... They believe that Obama may be alluding to broader tax
avoidance ... He may have mentioned Bangalore, but does Obama really have the IT and business
...Many jobs have been outsourced from the U.S. to Bangalore and is at least some of the cause of
America''s unemployment woes.

Sources: http://infotech.indiatimes.com/Enterprise-IT/Obama-torpedos-Bangalore----
again-/articleshow/4486078.cms

"To promote American companies to hire people in Buffalo

not , per say, Bangalore."
President Obama was on the stump in his latest tax initiative as he urged American companies to
hire people in the United States first and mentioned hiring someone in Buffalo over Bangalore.

ndex Slide
Contents
Introduction, Ground rules & Disclaimer

What is Outsourcing ?

Why do organizations out source?

What are the challenges in outsourcing?

What are the common mistakes done in outsourcing?

What are the factors that drive the outsourcing success