Niyamath Parveez

With more and more University and colleges opening up in America, there is an increased level of pressure being placed upon the teaching staff. This had led to a number of problems facing the academic bodies in the United States of America. Like most labor related issues in America, the most obvious answer seems to come from utilizing outsourcing resources. The best way of doing this has seen many lecturers, teachers and tutors outsourcing the marking and correcting of papers to foreign professors who perhaps have more free time.

Like many other aspects of outsourcing, India is seen as the home of quality work in this respect and the vast majority of outsourcing work arrives here. This is of much benefit to the professors in India as it is to the ones in America. The Indian professors find that they are able to supplement their income by doing this additional work. The current economic climate has made it vital for everyone to maximize their income and this option is a fantastic one for tutors. It allows them to use their knowledge and expertise but can also encourage them to develop new levels of experience. The motivation to earn more money is encouraging professors to develop new skills in other areas.

One of the main people behind this move has a lot of positive opinions about carrying out this type of work;

“The concept is gaining popularity in India as it not only allows the professors to make some extra money but also helps them get in depth knowledge on a particular subject,”

which is the opinion of Madan Padaki.

Padaki is the Co-Founder and CEO of MeritTrac, a company based in Bangalore which carries out such testing. The fact that opinions like this are coming from such highly respected people in India can only be a sign of the benefit it is bringing to all participants.

Rakesh Shukla has a strong opinion about this subject. Shukla is the current managing director for an organization called The Writers Block. The Writers Block provides publishing and communication services;

“Technical communication space is growing fast and rising up the value chain in terms of delivery for the domestic and global customers. It is also an enhanced return on investment proposition, aided by superior technologies and tools.”

It is not just the Indian staff members who get the benefit of this type of working but the benefits to the American staff needs to be outlined as well. The fact that there is a depth of professors in India means that there can be a level of quality, offering a solution to every budget.

“Outsourcing such assignments to India is advantageous to US universities as they get valued in three-five days against 8-10 days in the US. Also, richness of grading is higher as it is done by a qualified professor. We make sure that the scale we develop is not ambiguous.”

There will always be critics of outsourcing but the benefits of this style of working can help provide a better teaching system for the developing minds of America.

The car industry in the United Kingdom was one of the most prestigious throughout the nation’s most recent history. Not only in terms of jobs and production levels but for prestige and pride, the UK car manufacturers played a massive role in employing thousands of British citizens and ensuring demand for UK products all around the world. Thankfully the days of Britain’s evil Empire is long over, the days of UK rape and pillage is long dead but the car manufacturing sector never brought shame on the great nation unlike the attitude to slavery and race which used to permeate in the upper echelons of UK nobility and standing.

However, the UK motor industry may be about to go the same way as other former traditions and with the current economic situation being what it is, this may be a hammer blow. Even when the world economy was in better shape, global market forces was causing a great withdrawal from UK based manufacturing plants and sources but the ability to outsource labor and production has placed an even deeper pressure on these once proud industries. There are genuine concerns that the UK is turning into a service based island and these fears may be coming close to fruition.

One of the best loved car manufacturers in Britain and the United Kingdom was Jaguar, the company’s logo and main models being synonymous with class and style. Even now, the Jaguar logo instantly transports many people to the swinging 60s when Britain and London ruled the world bringing style and new ideas to the planet. This has long gone and Jaguar is no longer the symbol of virility that it once was. This can be shown in the current debate and confusion over Jaguar in the United Kingdom and where they may be going to next.

A recent announcement that Jaguar intended to close down one of their UK plants and move to India has undoubtedly caused consternation and up to 20 local MP’s have rallied to the cause and promised to take the argument to plant and company bosses. In the current economic climate, it is easy to see why the appeal of Indian outsourcing shines so brightly for Jaguar. Lower labor costs, with no real drop in quality are an unbelievable opportunity for any firm to take and there is no way that any competitor in Jaguar’s position would turn down this chance.

This therefore places Jaguar in a difficult position in that it has to seriously consider this outsourcing option in order to remain in control of their income and profits.

Further complications in this situation have arisen due to the integration between Jaguar and Land Rover, creating the JLR brand, which of course brought together two entities with their own production lines, HR staffing and so many other systems. This has allowed some merging of resources which should have seen the integrated company obtain a measure of benefit but given the current economic climate, the opportunity to make genuine savings are always available.

Coca Cola is one of the most famous brands in the entire world and any news story surrounding them is of great interest to many people. Like so many top brands, Coca Cola have managed to transcend the fact that they are a drinks manufacturer and have a fan base that is devoted as any sports fan. This can be seen in the merchandise for the company with people wearing t-shirts with the logo splashed over it and have their house full of products. Some people can’t see the company doing any wrong but it is inevitable that they will occasionally receive bad publicity. One of these instances has arisen recently with the news that Coca Cola are looking to outsource an element of their production.

Given the current economic climate, no one wants to lose their job and the local economy could be greatly affected by these outsourcing moves.
The thing that gets most people is the fact that they will believe that Coca Cola will be making more than enough money as it is. For small firms, it is easy to see that outsourcing is extremely important and taking these steps may be the difference between the firm surviving or going to the wall. However, when people consider the size and stature of Coca Cola, they will start to struggle with the concept that they need to improve their financial status. It is important to realize though that companies like Coca Cola didn’t get to their current status by making bad decisions. They know that if they can make improvements to their production facilities or make a further saving, they will do so. This is exactly what is happening in Ireland at warehouse and distribution outlets. If the outsourcing plan goes ahead, areas like Dublin, Cork, Tuam, Tipperary, Waterford and Killarney will be affected by these outsourcing plans.

A total of 130 jobs are likely to be affected and given the current levels of unemployment in Ireland, these figures are not a small matter. Any small economy would miss this level of jobs and again, the fact that it is a company like Coca Cola that is making the layoffs happen makes it more difficult for many people to comprehend. The news has not been well received and this has led to the announcement that current staff are looking to strike in protest against this decision. As always, whenever strike action is mentioned, there is usually a trade union close behind and this is the case in this latest development.

Whether these latest actions will be enough to keep people in a job or will only be enough to earn a better severance package, it is no doubt a very trying time for all concerned. It is not likely that this move to outsourcing is going to affect the sales of Coca Cola around the world but it is fair to say that the drink will be leaving a bad taste in the mouth of those affected by this latest outsourcing decision.

Some of the most powerful people in British history have been aligned to trade unions and any keen follower of the working classes in the UK will be well aware of the power they used to hold. It is correct to use the past tense for talking about the scope and capabilities of the trade unions in Britain. Yes, there are still many different trade unions with a large membership but the power they have over firms and companies is a sorry amount compared to what they used to be able to do in their heyday. The Conservative government of the 1980s managed to dismantle and demolish the power and mystique that trade unions held and there has been very little seen from them since. Every so often, there will be a token rebellion or attempt at a strike but judging by results there is never too much to suggest that trade unions have the ability to change anything these days.

The latest move by trade unions to indicate that they have some gumption left in the United Kingdom is revolving around the issue of outsourcing and the fact that it can cause many of their members to lose their jobs. It is fair to say that in the current economic climate that outsourcing offers companies an excellent opportunity to reduce their labor costs and reduce their expenditure. This is obviously very appealing to the firm but it does not have to be explained why it is not in the interest of the employees. It also means that trade unions will have fewer members employed and less power in attracting people to join up with them. Which will ultimately lead to them having a reduced income level which means that the leaders of the trade unions will receive fewer perks and benefits that they are accustomed to. This means that outsourcing is a natural enemy to those who engage in outsourcing and it is not surprising to see so many of them attempt to make a stand against outsourcing.

GMB, Unison and Unite are three of the largest trade unions in Great Britain today and they have joined together to condemn the actions of the National Grid, who are in the process of outsourcing a number of their non-essential jobs out to India. The National Grid, who provide gas and power throughout Britain, are looking to move a great number of jobs out of the UK to India, a major offshore outsourcing player in the world market.

The fact that the National Grid have stated that this action is as much related to quality of service as opposed to cost has possibly enraged the trade unions even more and there is no doubt that this will form part of the protest that they are due to make against any possible decision to outsource UK jobs. On the 27th of July, National Grid will be hosting their annual general meeting and plans are already in motion to set up some form of protest to ensure that the board members and share holders are left with no doubt about the unpopularity of this move.

To the casual observer, India may be the only place that matters for outsourcing but there is a whole world of countries out there that can provide a fantastic service enabling companies and organizations to benefit. The financial aspect is one of the most important elements for a firm and given the fact that the current economic climate is causing many people difficulties, anything which can help a firm build a stronger financial footing should be considered. However, using outsourcing is also a great way of bringing in a different range of skills and experiences that may not have been available in their own country or affordable.

To help companies find what they need to progress their work, there are regular listings and updates of the countries around the world and how they provide outsourcing services. One of the nations who have regularly been hitting the top 10 of all outsourcing destinations of late has been Vietnam and since 2007, Vietnam has made striding moves forward in a very competitive market. The benefits of outsourcing are usually aimed at the firms who will outsource their work but there is also a great deal of benefits to the overall economy of the country that is able to provide a new workforce. Anything which guarantees work and employment has the ability to greatly improve the economic output of a region needs to be seriously considered by a government or local firm and there has been a definite decision by the Vietnamese people to make themselves far more available to outsourcing from different countries. The economic reality is that they are able to provide a workforce at a cheaper price of labor which immediately gives them a head start when it comes to providing outsourcing work but there has to be more than just low cost.

The high quality of Vietnamese workers has been indicated by the high numbers of IT work that Japanese companies to Vietnam for a number of years. This run of success alerted many other nations and firms to the qualities of Vietnam and the news has travelled to Russia. One of Russia’s major outsourcing IT firms; Luxoft has opened a major center within HCM City which they hope will bring them a great number of benefits. The reduction in labor costs is an obvious benefit that Luxoft will hoping to achieve but it should also enable the firm to make an impact on the Japanese market. The longer term approach is one that many firms and organizations are looking to make in order to be able to reap the benefits in years to come. The current economic crisis means that there is a need to be aware of what is happening right now and companies need to safeguard their future but there is also an opportunity to position themselves for later success.
With many firms now believing that India has reached its peak with regards to outsourcing and is struggling to compete with the new arrivals on the outsourcing block, Vietnam is a name that is worth considering if you wish to make moves into new and important markets.

If firms have learned anything in the past few years, apart from banks don’t always know what is right for the market and the economy is that outsourcing is becoming a tremendous way to reduce costs and to bring in experienced workers to assist your own staff. Unfortunately, when jobs are scarce and the economic climate takes a turn for the worse, the issue of employment becomes an extremely emotive issue and many people can turn on outsourcing and deem it to be distrustful to a local community. It is true to say that many firms have reduced their workforce in certain areas due to outsourcing but equally, the outsourcing capability has enabled many firms to maintain an element of workplace when without it they may actually go bust. It is important to view both sides of the argument as fairly and as unemotionally as possible in order to deem whether outsourcing is a great solution for your firm.

One area where there has been a lot of healthy debate regarding the merits of outsourcing has been in Wisconsin where the local Department of Transport (DOT) has utilized outsourcing capabilities for more than a hundred jobs in less than the past year and a half. A study into the work has indicated that the department has overpaid for these projects and if they used local workers, it could have cost considerably less. This is before you factor in the benefits that would arise from employing local workers and the positive impact this could have on the local economy. Outsourcing can have a positive impact but local councils need to have an awareness of the total costs and benefits that can be gained by outsourcing but equally, those who criticize need to be aware that it is about more than just cost.

Whilst the jobs may have been carried out by local staff, would the same quality of work have been carried out? If the work was put out to tender, a number of factors could have been the key reason for deciding to choose who was granted the project and it is wrong to think that the lowest cost was necessarily the reason for an out of town firm being given the job. A local council or government has a duty of care to ensure that the work being carried out is of a sufficient standard and quality and using a lower quality supplier may actually cost more in the long run. A high quality outsourcing supplier should be able to ensure that the product or service is in good condition and is able to last for a considerable amount of time.

There is certainly no doubt that the government body should be undertaking a cost benefit analysis on the outsourcing project in order to ensure that the right value is being had from the work. This means that the overall benefit to the local community needs to be factored in and if the provision of work to local citizens would have been of the most value, it is likely that the job should have been outsourced in this manner. However, there are many reasons for choosing an outsourcing firm to work with and until the Wisconsin DOT states their criteria, it would be difficult to state if they were right or wrong for the actions they undertook.

Although the downturn in the economic and financial market has been very well documented, its impact on outsourcing has not been as straightforward as many people would have predicted. When the realisation of the financial situation hit many firms, there was a quick move to reduce all unnecessary costs and outlays and the short-sighted approach of this would have led many to think that out-sourcing was a luxury that many firms couldn’t afford. After all, with many firms having to lay off employees in order to remain viable, would it not be better to utilize the existing workforce to complete tasks rather than outsourcing work?

The unfortunate issue with this argument is that there is a huge emotional attachment to the argument which can cloud many people’s opinions of it. If it came to any other factor where a business or organization could make considerable cost savings but with no loss in quality, there would little to no objection to this new method being pursued. However, when it comes to outsourcing in a time of financial cut-backs, the benefits of outsourcing need to be re-iterated and not only focused on the financial element.

When any market becomes more competitive, all the factors of the product or service will be evaluated, not only price. This means that the quality and delivery are as important in the final decision making process for business and customers and this is where outsourcing can provide an advantage. Many of the tasks that are created in-house may be completed by staff members who have no natural talent ort flair for a task and this can result in the quality of the product or service being poorer. With outsourcing enabling organizations to tap into the experience and knowledge of suppliers who are regular providers of their service, there is a better chance to obtain a quality service or product.

The cost of the outsourced product is likely to be of benefit and it should be remembered that outsource suppliers are subjected to the same economic climate and conditions as the rest of the world. Virtually every firm or organization is tightening their expenditure and looking to take on a greater workload and this increased competition is creating a far more attractive element to outsourcing. With outsourcing firms engaging in a price and/or quality war to entice organizations to work with them, the opportunity to significantly lower costs should not be overlooked by any manager or purchaser.

The human cost during tough economic times is invariably high and can be extremely difficult for small to medium sized firms where the staff behave more like a family than a business. However, the longetivity of the business and the livelihoods of the entire workforce need to be considered in all decisions and this is where the benefits of outsourcing can vastly outweigh the negative aspects. This means it is vital to employ an almost removed sense of balance to the decision making process but in a time when so many firms and organizations are folding due to financial difficulties, realizing the benefits of outsourcing and embracing the financial and quality benefits that occur may be enough to greatly improve an organizations chance of survival.