The increase in trade and the infusion of foreign capital around the world, as well as the rise in the exchange of knowledge between organizations, has allowed globalization in the marketplace to grow at a steady pace. Technological innovations like the internet mainly drove the phenomenon.
While there are more than a few ways to have a globalized company, one of the most popular means of becoming competitive on the international stage is by outsourcing work.
Outsourcing Employs Foreign Workers
Job outsourcing is an operation strategy where companies hire foreign workers at a reduced labor cost. The outsourced employees would then work in a satellite office based in their own country. According to recent data, there were around 14 million foreign employees outsourced by American companies in 2013. The top reasons why companies outsource are to reduce their operating costs and acquire access to IT resources that are unavailable internally.
Outsourcing In-Demand Jobs in the Call Center and IT Industries
The top jobs outsourced by companies are computer programming, software engineering, and customer support. American IT companies hire people in India and China because their skills are similar to the American standard, but with the added incentive of lower salaries. The Philippines and India are also the top countries for outsourcing when it comes to call center agents because workers there speak English.
Globalization Improves Market Performance
Globalization has its critics. They think that hiring people outside the country weakens the economy and leaves a lot of local workers unemployed. Some people, on the other hand, see it as a good thing. The economist and Nobel winner Amartya Sen, for instance, believes globalization enriched and continues to enrich the world culturally and scientifically. It has also economically benefited many people. The United Nations even predicts that globalization may have the ability to eliminate poverty in the 21st century.
While outsourcing American jobs is a hot-button, restricting it might make American companies less competitive. After all, we live in a highly globalized society. To be a player on the international stage, we need to adapt our methods to reach our goals.