Overview
Outsourcing has its pros and cons. In America some people see outsourcing as a terrible phenomenon. They consider outsourcing the main cause of the high unemployment rate and taking away jobs from hard-working Americans. Others see it as a necessary means of competition, cutting costs, and boosting the overall economy. How outsourcing affects Americans has been a topic of conversation for many people, but what about the other side of outsourcing? How does it affect the people on the receiving end of the outsourced jobs? What are the positive and negative affects outsourcing has on the people who are employed by these companies? In the following post I will zoom in on India and how outsourcing has affected their economy and their way of life.
The Creation of Jobs
In India there are about 1,050,000,000 people living in an area only 1/3 the size of the United States. India has about 1.29 million graduates each year, and many students after graduation had no place to work. Many turned to criminal or political gangs. However, now students in India have more direction and study in colleges where there is a strong emphasis on the English language and classes that specialize in what is called the “business process outsourcing industry” or BPO.
Outsourcing has provided billions of jobs and billions of dollars to India’s population. “They own much more than they could have ever expected,” says Anney Unnikrishnan, personal supervisor at 24/7. “They have a lot of disposable income and they have a lot of disposable time because they work here in the night so they get to spend all the money during the day. They call it hot. This job is hot.” 24/7 is a BPO company in India that employs thousands of Indians answering customer service and sales calls. There is an increasing demand for BPO workers, but there are also many people fighting for a position. “The education system brings in a lot of peer pressure and when you live in a country with a billion people that makes the Indian more competitive because he fights for getting the opportunities and really owns his skills, like the calls for business,” says V. Bharathwaj, director of Marketing at 24/7.
Overall, it seems as if outsourcing to India is helping its overall economy and employment rate. Indians seem to be more than delighted to accept a job at an outsourcing company where they earn $200-300 a month, which is a considerable amount considering the cost of living in India is lower than that of the United States. However, working at a BPO can be very draining. Having to answer calls with angry and disgruntled customers day after day can be very frustrating and exhausting. Also, working in a BPO, there is a high turnover rate because there aren’t many ways to climb up the business ladder when you become someone who answers phone calls all day long. It is also hard to get a different job after that because there aren’t many jobs that deal with the same set of skills as outsourcing jobs do. Advancements in job opportunities isn’t the only down side to outsourcing. The abandonment of culture and tradition is also starting to become more prevalent. I will go into more detail about this in my next post.
Outsourcing has provided billions of jobs and billions of dollars to India’s population. “They own much more than they could have ever expected,” says Anney Unnikrishnan, personal supervisor at 24/7. “They have a lot of disposable income and they have a lot of disposable time because they work here in the night so they get to spend all the money during the day. They call it hot. This job is hot.” 24/7 is a BPO company in India that employs thousands of Indians answering customer service and sales calls. There is an increasing demand for BPO workers, but there are also many people fighting for a position. “The education system brings in a lot of peer pressure and when you live in a country with a billion people that makes the Indian more competitive because he fights for getting the opportunities and really owns his skills, like the calls for business,” says V. Bharathwaj, director of Marketing at 24/7.
Overall, it seems as if outsourcing to India is helping its overall economy and employment rate. Indians seem to be more than delighted to accept a job at an outsourcing company where they earn $200-300 a month, which is a considerable amount considering the cost of living in India is lower than that of the United States. However, working at a BPO can be very draining. Having to answer calls with angry and disgruntled customers day after day can be very frustrating and exhausting. Also, working in a BPO, there is a high turnover rate because there aren’t many ways to climb up the business ladder when you become someone who answers phone calls all day long. It is also hard to get a different job after that because there aren’t many jobs that deal with the same set of skills as outsourcing jobs do. Advancements in job opportunities isn’t the only down side to outsourcing. The abandonment of culture and tradition is also starting to become more prevalent. I will go into more detail about this in my next post.
Affects on Culture
Many people in India decide to go into outsourcing because they find it somewhat glamorous. They have the whole day off to spend with friends and family and make a considerable amount of money to sit around and answer phone calls at night. Some Indians don’t realize how tiring it can be to work in a language that isn’t their own. When answering phone calls from Americans it is important to understand and relate to a culture that is not their own. One of the first classes that must be taken when going into the outsourcing business is accent neutralization. They spend hours and hours perfecting our language, making sure that they sound as American as possible. They must also educate themselves on slang. It is said that "the most marketable skill in India today is the ability to abandon your identity and slip into someone else's.” Being able to identify with their callers is very important. Signs of our culture have been seen more frequently in India. There are more coffee shops, bars, clubs, etc. India has definitely become more westernized and so have the people. “I was less of an Indian even about 30 years ago because I grew up with Woodstock. I grew up with the Beatles,” says Anney Unnikrishnan. “I knew everything that was happening in the America, but here they are able to go out and do something about it. If I wanted to buy a CD I had to think about it several times before I spent that money. In here they are just able to go out and buy it, so they are getting their Americanization a little bit more forward than I did.” Because of the extra income that the younger Indians are receiving, they have now become more materialistic and more brand conscious. Even Indian’s role models have changed. With the generation before outsourcing, the most respect and admiration was given to the gurus and teachers. Now, when asking two employed Indians of a BPO company who their role model is they said Bill Gates.
There is no doubt about it, the culture and way of living has definitely changed in India. However, the change is not all bad. There seems to be more equality when it comes to men and women. Women have the same opportunities as men and can receive the same education and employment opportunities. “A few years back we didn’t have girls at this age working,” says Sophia Ross, a call centre employee. “We were probably all studying or getting married, but now it’s not like that. You socialize more now. You have the money to go out with your friends.” There certainly seems to be a sense of empowerment with this new generation of Indians. Lately, the companies that Indians work for have been expanding and needing more positions to be filled with skills that aren’t as common in India as is seen in the United States. This has led to a new trend called “reverse outsourcing”. In my next post I will go into more detail about this.
There is no doubt about it, the culture and way of living has definitely changed in India. However, the change is not all bad. There seems to be more equality when it comes to men and women. Women have the same opportunities as men and can receive the same education and employment opportunities. “A few years back we didn’t have girls at this age working,” says Sophia Ross, a call centre employee. “We were probably all studying or getting married, but now it’s not like that. You socialize more now. You have the money to go out with your friends.” There certainly seems to be a sense of empowerment with this new generation of Indians. Lately, the companies that Indians work for have been expanding and needing more positions to be filled with skills that aren’t as common in India as is seen in the United States. This has led to a new trend called “reverse outsourcing”. In my next post I will go into more detail about this.
Reverse Outsourcing
It is a trend that has become more common, and it is called “reverse outsourcing”. Reverse outsourcing is where Indian companies now have to outsource jobs to U.S. companies. IT companies such as TCS, Infosys, and Wipro have come to the realization that they now need to outsource certain jobs to the U.S. and Europe. The opportunities that the United States gave to India by outsourcing jobs has now paid off and created a reverse affect. After establishing companies in India and them becoming profitable, they now need to set up more offices, creating more jobs. They have even started to set up offices and hiring people in the United States in search of people to fills specific fields of employment such as Product Management, Software Product Marketing, R&D, Marketing Strategy, Developing New Technology Platforms, Strategic Alliances, Mergers & Acquisitions, Project Management, Client Relationships, and Business Development. The simpler jobs still stay in India, but during a time of economic instability in the United States, any job created is greatly appreciated.
Conclusion
Overall, outsourcing seems to be an important trend. There are some cons to outsourcing, but I believe that it has helped us grow and compete in a healthy way, especially over in India. Outsourcing has increased globalization, and everyone gains when it comes to expanding in to more markets. It also helps create jobs and compete given a competitive advantage. If it helps cut costs to outsource jobs to a country where the wages are cheaper, then that will help any company grow and eventually create more jobs. Indians seem to view the United States as what they want to become. Becoming more westernized is very important to them. I believe it is a good give and take relationship. With growing relationships and growing companies, both sides will benefit in the long run. India seems to be extremely excited about its future. One Indian worker says, “We are going to be a really really happening country in the future…India is soon going to be like a mini America.”
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