Nov 04, 2025
Nov 04, 2025
The eternal syndrome of 'to be or not to be' has emerged once again before mankind in the form of sourcing workers or outsourcing works. Many of us had earlier thought that world will shrunk to a global village with the advent of internet and mobile phones. Manmade borders and color barriers were expected to disappear in a highly connected world. But that is not to be, at least for the time being. Even if the geographical boundaries disappear, mankind will remain divided as different cultures, nations and economies for some more time.
Movement of        population from the less developed to more developed economies is        inevitable in such a scenario. Until we have a level playing field among        world economies, the less developed need to be protected and encouraged to        close the gap. Socio-economic entropy is least in a world of equal nations        and our aim must be to reach such a stable state at the earliest. It is        worth remembering that agitations & unrests are least in developed        economies and our planet would be a safer place only if the economic        disparities between individuals (and nations) are within reasonable        limits. Cost of any war on terrorism can be decimated by spending more on        development of lesser economies than on military hardware. It is always        better to prevent the need of war than preventing war. Global bodies        driving for globalization and liberalization must formulate ways & means        to achieve a New Economic Order among world nations in order to achieve        this.
The current trend of outsourcing jobs to places where human resources are        located (instead of other way around) is presenting a tremendous        opportunity to work in this direction. Though protests can always be        expected from marginalized sections of society in developed nations, the        world leaders must seize the opportunity and enforce the flow of        employment opportunities to developing economies. History will not pardon        us if we fail yet again in utilizing another opportunity to build a more        just and equitable world order. It is time we realized that the returns        from developing one's own brethren in a lesser developed economy far        outweigh the apparent benefits out of an advantageous gap in balance of        trade. 
It was different then        
The last time we got a major chance for 'globalisation of common wealth'        was during the Industrial Revolution that swept through large parts of        Europe and Asia during eighteenth century. Instead of encouraging the        active participation of colonies in the development process for overall        benefit, the imperialists literally used the colonies to develop only        their own societies. It won't be an exaggeration to state that the wealth        and well being we notice in today's Europe owe a lot to the sweat (and        blood) of people in their colonies in Asia and Africa. Most of the raw        materials & manpower were in the colonies and Europe had the distinct        advantage in terms of technology and military power. While many of the        European countries attained unprecedented levels of growth by successfully        utilizing the cheap Labour to exploit the equally abundant mineral wealth        in their own nations, the poor colonies became poorer. Entire population        in the colonizing nations flourished but only a few in the colonies        benefited from this organized exploitation. The fact that even a fraction        of the benefit was not canalized back for the welfare of the poor in those        colonies remains a permanent blot on the colonizers. Another chance,        though of a minor scale, presented itself during the oil boom in the        Middle East during seventies and eighties. The initial tendency of the        privileged was once again one of mindless exploitation for one's own        benefit. Outsiders came with men & machinery and left with the exploits        leaving the locals with little. But the world had changed and at least        some of the affected nations could rise to the occasion by building        facilities for value addition in their own soil is part of history now.        Though not of desired levels, most of the Gulf countries could benefit out        of their own natural wealth speak volumes about the changed times. 
The consequences of unbridled migration from under developed and        developing nations to rich destinations is in front of us to see. If 9/11        has opened the eyes of an indifferent international conscience to the ill        effects of immigration, it is a welcome development out of a human        tragedy. Miserable stories about qualified professionals from poor        families 'escaping' to US/UK and consequent national loss to poor        countries from brain drain are well known. Though some relief comes to        those poor countries when a few of their successful emigrant sons bring in        foreign direct investment, the social losses on account of brain drain far        outweigh the economic gains. Moreover, such successful emigrants always        serve as undesirable role models to the upcoming generation in such poor        countries. 
It is different now        
But the scenario is completely different this time round. Twenty first        century belongs to services sector and we are standing right at the        threshold of an era of possibilities towards employment for all. Small has        become beautiful again and we need only smaller facilities to provide        employment to a greater number of people. Time has taught us that        providing education and employment is far better than millions in grant        and aid. The multiplier effect of providing employment to just one member        in a poor family is well known. The developed nations can keep their money        but should voluntarily outsource the jobs that can be done in less        developed locations anywhere in the world. If that comes to be accepted as        an official policy of governance in all the developed countries, we are        definitely heading for a developed planet itself in another fifty years.       
Outsourcing of employment to countries in Asia and Africa has been found        to make economic sense too. A recent report from McKinsey Global Institute        estimated every dollar of costs the US moves offshore brings America a net        benefit of $1.12 to $1.14 and projects net savings of $390 billion by 2010        to the American economy due to outsourcing. McKinsey reasons that as low        value-added jobs go abroad, Labour and investment can switch jobs that        generate more economic value. Taking jobs to where qualified people can        work in their own environment is one of the most logical things to do for        any business unit. Individuals excel in work in their own natural        environment and what better can be done than to allow an Indian to work in        India or a Chinese to work in China? The other option of allowing        immigrants has always led to development of cultural conflicts and        divisive undercurrents in the society of host countries. Differences on        account of color and culture are deep rooted with much more implications        than what ordinary social analyses can fathom. It has always proved futile        to integrate ethnic immigrants fully into any foreign society. The wisdom        of spending millions to showcase an integrated society makes little        business sense when we can get the same work done by outsourcing. 
IT has changed the world
Information Technology (IT) and IT enabled Services (ITeS) are changing        our world every minute. Even our best economists are struggling to arrive        at any conclusion regarding its employment or wealth generation potential.        If handled properly, these neo-technologies have the potential to bring in        development at a tremendous pace to vast sections of population in        developing countries. The concept of virtual offices and remote operations        opens up vast potential for offering a livelihood to millions without any        displacement of population. Miles of high speed data transfer cables being        laid under sea and scores of communication satellites launched every year        are cementing the theoretical possibility of impoverished Asians and        Africans taking part in world development. But the virtual reality of a        developed world will become a reality only if the powers that be agree to        a systematic use of third world talent by outsourcing jobs. 
It is a fact that within the third world itself the digital divide is        widening. Direct operations of large multi national corporations are        inadvertently contributing to this. These corporations are setting up        hi-tech offices amidst prevailing levels of low technology in these        countries. The resultant effect on a section of the local populace in        terms of income and digital access results in widening of the divide. Only        a minute section of local people get exposed to higher technologies and        facilities. The better option in front of these corporations is to        outsource only the low technology jobs to these countries and utilize the        technological advances in running virtual offices. The slow and calibrated        exposure of developing countries to latest technology can also result in        healthy development climates in these countries.
It will make a better world
A world devoid of hunger and violence is what all of us desire. The        current war on terrorism is half won if we can address the reasons that        breed violence. Inequalities will always exist in a world where 20% of        people keep 80% of the wealth. But hunger and abject poverty anywhere in        the world is definitely not acceptable whatever be the reasons or        explanations. As an example, we still have a third of the world's poor        (with less than $ 2 income per day) in a single country like India. If        this is not leading to large scale uprisings and revolutions drawing in        the whole international community, we can only thank the ancient culture        and religion that is keeping the millions passive. Unless opportunities        are made available to sustain a dignified life for each and every        individual living anywhere in the world the apparent calmness may not hold        for ever. The number of human beings interested in charity food and money        are coming down drastically in present day world. Everyone is looking for        dignified employment and decent living preferably in their own        environment. What better option do we have than allowing smooth transfer        of employment opportunities through the broad band to the talented lot        living far away from development? Export the jobs and restrict the import        of workers. A world in which we find only tourists feeling the need to go        out of their own countries is definitely better and safer.  
11-Dec-2004
More by : J. Ajithkumar