Business in Focus & Research Skills

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The global economic downturn since about August, 2007 is giving rise to several protection measures one of which is the attempt to restrict or eliminate outsourcing as a business practice. This key trend, originating in the US, is creating nervousness among the businesses both within the US and in those countries like India, Ireland and Philippines which are the main outsourcing locations for IT and IT enabled services (ITES), and in China, Thailand and Vietnam etc.


Globalisation of businesses on the one hand, and the extensive spread of the Internet on the other, facilitated the phenomenon of global manpower outsourcing. The growth of usage of computers in all walks of life created enormous demand for English speaking and trained manpower for working as programmers. The economic rationale for using foreign nationals in low-end application programmes was the significantly lower wage costs and sheer manpower resource availability. This trend has rapidly spread to many other areas such as call centre operations, legal, accounting and auditing, engineering, manufacturing processes etc. generally termed as business process outsourcing (BPO), and gave rise to two types of employment of foreign nationals - onshore or off-shore services and in each case there have been corresponding loss of job opportunities for locals. In the onshore format, the foreign national is
In the US, which is the major promoter of outsourcing as a model for competitive global business operations, there is a growing public resentment on the jobs lost to foreign nationals. ...
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