Do the outsourcing of jobs really affect the economy and people?
October 29, 2007 6:01am CST
I read many news and business magzines that many jobs are outsourced to developing countries like India, Philiphines, and manufacturing facilities to china, India for better performance of their companies and to have healthy growth. But how these acts affect the developed countries specially their people and their economies.?
29 Oct 07
Yes, outsourcing definitely affects the economy of a nation. You outsource when you get the same quality at less price. Developed nations like India and china offer best qualities at a much lesser salary than what local labour in say USA or Europe would demand. European nations and the USA are extremely industrialized nation so they enjoy a very high standard of living and their salary structure is also keeping in pace with that. But Asian and African nations were colonized and exploited by Europe and hence their pace of development is lagging far behind. However, recently Asia has caught up in expertise with the developed nations, while the peoples’ expectation of salary has not gone up so much. So the USA and Europe find it more profiting to outsource these jobs to India and China and in the process a lot of their local people are becoming jobless and adding to their unemployment problems.