New Delhi, Feb 17 : Industry experts advising and leading the business process outsourcing activities for Fortune 500 companies are of the view that despite the political compulsions over job-losses, the United States will not allow the offshore outsourcing growth to taper off in the months ahead.
In a article published in the Forbes Blog, David Rutchik is a Partner with outsourcing advisory firm Pace Harmon, says despite the rhetoric and legislative initiatives to cut down outsourcing, the industry has continued to prosper as American companies continue to avail of what is a "critical tool in their arsenal to remain globally competitive."
Though U.S. unemployment figures remain static at 10 percent, it is undeniable that recent initiatives related to Visa restrictions have had 'marginal impact' the outsourcing industry and have 'mostly signified a growing discontent with the inability of the U.S. government to generate enough jobs to meet the expectations of its citizens,' he says.
Rutchik, whose company represents Fortune 500 clients in their outsourcing, offshoring, strategic sourcing and other critical business transformation initiatives, says: "The reality is that U.S. companies have grown too accustomed or dependent on the high-quality, low-cost technology support that these visas enable."
"Whether truly attempting to quell U.S. unemployment concerns or championing an issue expected to be popular with the U.S. electorate, U.S. lawmakers have introduced several initiatives that translate to more hurdles for offshore outsourcing providers to compete effectively in the U.S. One such effort introduced dramatic visa fee increases as part of a bill to increase U.S.-Mexico border security," he writes.
However, the Center for Immigration Studies suggests that on the current trajectory, the U.S. will approve enough H1-B visas for computer workers to fill nearly 80 percent of the computer jobs it creates each year.
But even with similar statements and increased political rhetoric, President Obama himself seems to be recognizing the value provided by the offshore outsourcing industry, says the author while quoting Obama's statement after his India trip where he said that Indo-U.S. ties were not just about American job losses but about creating new ones, growth and higher living standards.
"And despite statements suggesting that the industry is feeling the pinch, outsourcing service providers’ 2010 revenue grew at the fastest pace in recent years—more than 10 percent—and is expected to continue, according to the Industry Association of Outsourcing Professionals’ Global Outsourcing 100 data," the author says.
Rutchik believes that once the impact of recession reduces, companies will continue to outsource as they understand the potential of how the BPO industry can do more for less and help them efficiently leverage their resources. The impact of productivity gains where employees focus on core objectives while outsourcing less critical tasks is here to stay.
"Until a model develops that can deliver more value with less resources, outsourcing will remain a fixture of the U.S. business environment, despite political interference," concludes Rutchik in his blog on the Forbes website.