I know it is frustrating to watch more and more IT jobs being shipped overseas even though you have a better qualification and more willingness to do it. While there are many political, governmental policy & tax reasons for this, I want to address two of the major reasons where government change itself cannot solve. I have strategies and powerful tools in hand that will take care of reversing the outsourcing.
The two major reasons why outsourcing happens:
1. Business needs to show profit by cutting cost of labor and
2. The lure of currency value difference.
One factor that contributes to both of them is: the human resource is being traded as a commodity. When companies start looking at cutting cost to show the profit to the investors(wall street), they look at lowering human resource cost. The human resource cost has become so complicated costing with almost 3 times more than salary itself for many companies if they are dealing with employees. The complexities of labor laws and other corporate laws are attributes for it. So, companies always look forward to outsourcing the work in the form of contingent workforce service or convert the work items into projects and outsource them. They simply transfer the cost to the supplier. But the supplier, on the other hand, tries to mitigate it by transferring to next layer. Finally, someone has to employ people right? When it comes to employing people again the outsourcer also should deal with the same problems. So, US-based outsourcing companies are pushed to the situation of bidding higher for the work items/person because they have to employ Americans. Now the client has an option either to hire US outsourcer at a higher price per human resource or to engage offshore outsourcer who quotes at least 50% less than the US outsourcer because they employ people offshore and they don’t have to deal with US labor laws. Obviously, the client will go with the second option as long as the quality of people and experiences are at the same level. This is where it gets trickier. Right now that is not happening.
Offshore outsourcing companies don’t employ high quality higher experienced resources always. The reason — client overlooks it as it helps them on higher capitalization and helps executives on their own personal benefits. So, all we see is human as commodity trading, which is enabled by the value difference in local and global currencies. The true culprits are the currency trading big businesses that are driven by Wallstreet and Dalal street. In order to maintain a substantial difference of value between US dollar and their currency, the other nations are constantly devaluing their money to ridiculous levels. After Britain decided to get the pound sterling out for being the world currency, for the similar reasons what America is facing today, US dollar took the place over of being the world currency. As long as the US continues to be the creator of the world currency, the problem of raging devaluation war from the other countries will continue to happen so as the outsourcing.
But there is some fundamental transformation happening in the industry that will reverse this process. It will help you getting hired at an even higher level and/or get into business using these tools & techniques to make big money. The keyword is “digital Transformation”. It is the next big thing that is transforming the global economy, especially in the US. It is estimated to get rid of millions of currently outsourced jobs through process automation and create many millions of higher level jobs in analytics. It is estimated to grow to $1.4 trillion yes, $1400 Billion by 2020 world-wide.
It is going to take some time for the offshore companies to learn the process and train their resources. If you take action right now, you will be able to grab these opportunities to make a fortune! And most importantly client will lose their business if they don’t employ high qualify resources that are well trained in informatics and process analytics. Such window of opportunity for #Americans was there before, but that window was always lost because quickly the offshore engineers been trained and take over the opportunity. This time, it will be difficult but not impossible. As long as Americans could take steps to hop into it on time, the opportunities can be grabbed.
The good news is “Business digital transformation guild”, a Non-Profit Association based out of Herndon, Virginia, can help you to hop into this fast growing economic boom as a professional or as a business. Currently, we are offering 6 months free membership for students and professionals with no obligation to renew after fix months if you don’t want to. So, you have nothing to lose, but plenty to gain from this. DON’T MISS IT!!
You can use code: 6MONTHSFREE when you sign-up.
President & Chairman,
Business Digital Transformation Guild