2014/03/25

Economic interactions and flows - Outsource



The companies from today seek for the best efficiency: low cost, good quality, and speedy processes. Therefore, they opt to take outsourcing as their best solution. 
"Outsourcing" refers to the act of getting some jobs done from the outside of the company for several reasons. Those reasons include reduction of costs, improvement of quality, acquirement of technology, and avoidance of health insurance or pensions for workers. 

Outsourcing can result it many both positive and negative outcomes to the world. For instance, outsourcing allows the distant relationship with the workers. It is very depressing that it is easy for the company to fire, replace, or even abuse those people working in the outside of the country, especially of them who are poor. Looking at the case of domestic servants in Saudi Arabia moved in from the outside, so many workers have been exploited physically, mentally, and emotionally. They were very prone to get fired by the hirer or the company. However, the remittences sent back to their country became the major support in maintaing the economy of the families. Outsourcing also taught people from the outside about new skills or technology. 

It is apparent that both the company or individual and the employees from the outside have mutual relationship when it comes to economic aspects. Then, a question arises; what are the challenges of outsourcing in the cultural aspect?

2 comments:

  1. I think you have a good point in viewing the growth of outsourcing in the workers' view. People come to focus on how these places are popular due to their availability to these large companies to outsource; however, we should also focus on how these outsourcing workers are mistreated. An apotheosis is Nike outsourcing to Bangladesh, which caused several humanitarian protests because Nike were exploiting the local workers. These workers may be mistreated but they still heavily depend on these TNCs' outsource.

    ReplyDelete
  2. Culturally? Wow, this is definitely a more complex question. The first thing that comes to mind in terms of the Philippines is this idea that English is being so widely used that Tagolog will run out of fashion. You might even see a greater resurgence of Tagolog being spoken as a sort of push-back to the influence of English. Aside from that, I could also see cultural values change as workers work long late hours through the night. The whole Filipino family dynamic is at risk.

    ReplyDelete