Despite the mounting controversy about outsourcing, new research has found that there is still some positive aspects to offshoring. The traditional view of outsourcing was that of western countries taking undue benefit of underdeveloped economies. However, new studies indicate that jobs in top outsourcing locations pay more than local jobs.
Outsourcing to China, Philippines, and India result in good outsourced jobs that are better in quality and pay in comparison with domestic jobs. The ILO or the International Labor Organization says that outsourced jobs provide good quality jobs for young people in underdeveloped nations.
The outsourcing industry offers jobs in data processing, back operations, and call center services for the most part, although there are a number of niche areas involved in outsourcing as well. The back office division is a rapidly growing market in the outsourcing industry and reels in $90 billion..
The ILO, based in Geneva, did some research on outsourcing in Philippine, India, and South America. In general, the respondents that participated in the survey were young, female and qualified educationally. According to the research, those in the Philippines make 50 percent more than those who work in local jobs in the country. As far as India is concerned, workers employed in the outsourcing industry make double what the domestic employees make. This is quite a difference in pay and something welcomed by the young people in these countries. It gives them a flavor for international culture and gives them a head start in earnings, when they are starting out young.
Some negative aspects of outsourcing that was found in the study were working late nights, taking on huge loads of work, and stressful work environments. Employees abroad might also find it uncomfortable to work with new styles of communication and operating standards that are common to foreign companies. Incidentally, the turnover for staff in the outsourcing industry is higher than other industries.
The ILO said â€œthe bottom line is that this is an industry with the potential to offer a model for a future of good quality service sector jobs and high-performing companies in the global economy.â€
KPMG, a research consultant firm, said China enjoys the largest market share in the Asian region . India is the leader in outsourcing as far as market share from North America and Europe are concerned.
According to a survey of firms polled in Asia, nearly 40% have customer service facilities in China. Another 40% had outsourcing contracts with suppliers in China too. Meanwhile, India and Singapore placed 3rd and 2nd in the poll.
The market for outsourcing is projected to increase twofold by 2014 after spiking from a figure of $7.5 billion three years to go to $20 billion last year.