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Outsourcing causes more problems than cures for a company

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Agree
61% 289 votes Total: 470 votes
Disagree
39% 181 votes

by Deanna Rogers

Created on: May 05, 2009   Last Updated: May 25, 2009

When will the insanity stop? For some time now, CEO's in corporate America think it's a great idea to give away tens of thousands of jobs across America to the citizens of India. Now we are giving away our highest entertainment honor, the academy award to India too! Call me crazy, but it definitely feels like India is becoming the new America!

I have experienced firsthand, the devastation that off shoring jobs to India has done to the fabric of the American society. I am a 28 year veteran of a well known bank. It is disturbing to see the people I've worked alongside of, losing their jobs because we are off shoring positions to India. To add insult to injury, I have been tasked with the initiative to train the Indian new hires for the jobs they have adopted at the expense of my fallen colleagues.

I am not prejudiced, discriminative or fault the Indian employees who have become my co-workers. I have met many of them in person over the last year and find that they are very warm and kind people. They are thrilled to have the opportunity to travel abroad for training (at the corporation's expense). They are also extremely grateful to have secured a position that will now take care of the livelihood of themselves and their families back home.

Many of these individuals have relocated from remote areas of India to the major cities like Mumbai, Bangalore or New Delhi. The population in India far outweighs the job availability. In the city of Mumbai alone, there are over 19 million people. This makes India the perfect population to tap into since there is much more supply than there is demand. They are well educated, starting school at the age of three and continuing until they graduate a four year college. Mastering English writing and language is mandatory in their education. It is a part of the elementary school curriculum that begins in pre-school!

The salary of an Indian is far less than an American. Their hourly wage would equate to five American dollars per hour compared to a salary rate of $13-$15 per hour here in the US. This move by many corporations has helped to reduce one of their highest operating expenses line items - Salary and benefits.

When you analyze the entire concept, the benefit of outsourcing is not as justified as the corporations would like us to believe. The irony of it is that the savings should be realized is reduced dramatically after you factor in several key expenses.

Since training is conducted on site at most US corporations,

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