XIMB Organizes Talk on "Economics of Outsourcing" by VP-CTS

XIMB Organizes Talk on "Economics of Outsourcing" by VP-Cognizant Technology Solutions

Another fact most believe in is that the U.S. is becoming dependant on other nations. Mr. Mukherjee mentioned that there is nothing that can be done to prevent this simply because U.S., after all is also a part of the global environment. Moreover, some of the real advantages the developed economies possess has a great deal to do with culture, attitude, innovation and a wealth of upcoming infrastructure.

The emerging world cannot possibly duplicate these that easily. Then again, one must not forget that it was the U.S. who pioneered this process of outsourcing business to reduce costs.

A popular misnomer is that world trade is not fair because of outsourcing. Arguing otherwise, Mr. Mukherjee said that restricting offshore services will do nothing to make the world a fairer place. In fact, growth in the wealth of the emerging economies will serve to rectify some of the trade issues of the developed nations. Trade of all types does cause dislocation in society in the short term, but it always has led to positive outcomes in the medium to longer term. Offshore services should be no different. There has so far been no compelling evidence otherwise. Global engagement has been proven time and again to be far more powerful than global isolationism. Not a single example exists in world history that points to an isolated economy that has been strong and vibrant, and there is no reason to believe that future will be any different.

Next Mr. Mukherjee went on to mention the benefits that derive for outsourcing. Primarily amongst these is that the outsourcing company and the government as a whole get to concentrate on their core competencies. This process of outsourcing also reduces myriad risks. By reducing operating costs, it accelerates business transformation. On top of this, offshoring of services accelerates re-engineering benefits, thus, freeing internal resources for other value-added tasks. Offshoring promotes a much more effective and efficient global work culture where the world never goes to sleep, for the tyranny of time zone differences can easily be countered by this process.

In one interesting section of the discourse, Mr. Mukherjee actually proved that offshoring of services actually creates more job opportunities everywhere. This is how it works out.

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Contributed by -
Sumit Misra,
Member, IlluminatiX,
Media & PR Cell of XIMB,
Xavier Institute of Management, Bhubaneswar.

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