Outsourcing and the Economy: What Politicians Don’t Want You to Know30 Aug
Business and politics have always enjoyed a unique interrelationship. While American businesses search for ways to bolster their bottom lines and stimulate growth in a dwindling economy, politicians are on the war path to get in the way of new initiatives. Specifically, politicians have targeted businesses that are thriving as a direct result of business process outsourcing (BPO) relationships with countries like India and the Philippines. Some of the dirty secrets that politicians don’t want you to know include the following:
- Politicians want to tax companies that use BPO. It’s not just a simple matter of taxation in this situation. It is a matter of politicians wanting to squelch the success and upward movement of American companies that have learned how to eliminate financial stressors and create jobs (both abroad and at home) with BPO.
- Politicians don’t want other countries to enjoy financial success. BPO not only helps American businesses save money, but create higher paying jobs at home and recover from the recession. It also helps to stimulate the economy in other countries where BPO takes place. For example, a large call center in the Philippines creates hundreds of jobs for relatively skilled laborers with few alternative options. The BPO jobs pay above average wages and create opportunities for climbing the corporate ladder for Filipino citizens. Politicians are against providing these great opportunities for aspiring professionals in other countries.
- Politicians don’t understand the relationship between offshoring and turning the economy around. It might not be completely obvious to the naked eye, but offshoring relationships are contributing to economic recovery in more ways than one. It’s difficult for politicians to see how BPO is allowing American companies to dedicate more funds to core operations like research and development, green energy initiatives and providing benefits packages to domestic employees. The overwhelming savings that BPO creates actually allows for economic stimulation in the United States.
The argument that BPO is detrimental to the United States will continue as long as politicians lack understanding and insight into the matter. Fortunately, business professionals can take it upon themselves to learn about the benefits of BPO, how to protect their company’s reputation, and advocate for expansion globally. It’s entirely possible for American companies to thrive, while also supporting domestic growth and BPO abroad. All you need to do is set politics aside to see the reality of the economic stimulation and financial savings!
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5 Responses to “Outsourcing and the Economy: What Politicians Don’t Want You to Know”
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this is an interesting topic… offshoring labor is a beneficial mutual business relationship that the government should understand in this time and age.
Politicians want outsourcing and imports, so Corporate america can profit and kick money back to make politicians rich and the CEOs get rich also and people lose there jobs and their salaries go down.
I am from India, why does not India practice free trade and allow imports and outsourcing. I bet they would if people keep quite and suffer like Americans do. If they do, the politicians would be stripped naked and paraded on the streets of India.
Outsourcing, in any way, is really a great help to third world countries where they have put up their BPOs. In a country like the Philippines, where unemployment and poverty are main issues, BPOs have extremely been helpful in reducing the unemployment rate. BPOs have been sources of remarkable revenues in the country and there’s just no stopping this now. Besides, everyone involved in the outsourcing industry is benefited, hence, hugely contributing solutions to economic problems.
Anybody able to find specific data as to which US Corporations outsource high %’s of their jobs to other countries? That information would be good to know AND publish.
Best of luck, this is a closely guarded secret at most companies.