Wednesday, October 27, 2010

Outsourced?

Just the other day, there was a campaign commercial telling me why I shouldn't vote for a particular candidate- an apparent fear of job outsourcing to places like China. I am never big on Americanism, given I, like most consumers, buy just anything that's cheaper. For an advertisement such as this one, I wasn't swayed just yet.

Going global suddenly became a black curse among job seekers, regardless of how well multinational companies, like IBM, Microsoft, or Apple, are doing. Rest assure that these companies continue to employ many on the American land. They simply figured out a way to cut back in places that they aren't efficient at. You may think I am writing in favor of globalism, I am not. I am simply writing to rationalize my emotions. Back in 2000, when I was a junior in high school, everyone wanted to be a computer science major, including myself. After the dot-com bust, computer science wasn't cool anymore. Emerged from a business background, I developed a deep appreciation for delicate business processes. But over the years, I held a post in technology field and kept my business background as a backup. With a combination of these two, I have become a master of efficiency, with Internet technology as my tool and business intuition as my logic.

True, in the recent years there has been an exponential increase in technology and many jobs are diminishing. American companies have access to high quality labor at a low cost and better technologies; when efficiency is gained, jobs are sometimes impacted. A new resentment soon rises towards globalization and the dollar value return on a technology job rises to new skepticism. Politicians have raced to accelerate this fear and voters are encouraged to act on it.

But let's get a bit creative here. When a dollar is invested aboard, the margin of profit increases and the salary for the American workers becomes more generous. We take this salary to purchase goods- actually affording more goods made aboard, benefiting from the already low-cost structure there.

I am not worried but I recognize the pressures placed on technology jobs. Even so, technology workers aren't the only ones susceptible to the outsourcing trend. I emphasize on the concept of efficiency. When a company realizes how to do more for less, any one in any field is affected. For example, the primary function of my old job was to create a more efficient production line. And reducing headcount by far yields to high cost-avoidance. Then there are ways to reduce headcount- eliminating processes, combining processes, or introducing technology. These jobs are vanishing, not outsourced, not replaced with foreign workers. Whether this process improvement yields more productivity is irrelevant, the company in the end saves money to achieve at least the same result. Increased productivity does not necessarily mean higher profit for company- as you may learn from the theory of constraint, you're just producing waste.

Some people propose that a better education in science and technology will help America regain its competitiveness. I do not think this as a smart solution. As more students are studying science here, so are the students aboard, and education out there is just as good as over here. And producing talents excessively without parallel demand gives inventory and it is costly to maintain it (I am reluctant to call it waste, but it might as well in manufacturing's term). The work ahead involves equipping one with more than one skill and often considering both hard(technical) and soft(creative) skill. I see my business background as my emotional side- this is part of me that gives me creativity, expanding my perspectives; next my technical skill as my rational side- allowing me to judge the worthiness of my perspectives.

Now, revealing the true intention of this post. I hesitated to make one decision recently because of the term "outsourced". The position I applied for was to be outsourced to a global company for budget reason. I debated if I should partake in the outsourcing nature, but eventually I accepted it. It is for the greater of these two companies, and myself of course. If you look at globalization as a whole, the free flow of knowledge across regions should icon the free flow of goods worldwide. I am happy with the decision I made and truly embrace it.

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