Sunday, September 12, 2010

Turning swords into ploughshares

Time to think-and-do beyond
The recent news conference bash organised and delegated by the President of the supposedly most powerful country of the world, US of A, and attended by the media, undoubtedly shocked the world including economists and corporate honchos who criticised Obama’s administration for employing a protectionist and uncompetitive ideology. In his socialist speech, Barack Obama passionately stressed on the urgent need to eradicate the incessantly rising unemployment in America, essentially jobs lost due to the great recession and those lost in the name of “outsourcing” to European and more importantly Asian countries.

Rightfully and bravely following the Gandhian-like ideology, the Obama administration is trying very hard to provide equality of opportunity for all sections of society. The Democrats in fact plan to tackle the concern of rising unemployment in the country, by withdrawing tax breaks to corporates that outsource to countries outside the American soil. Additionally, also revise tax codes to make provisions for tax relief to middle class Americans, who actually need it rather than offering it to billionaire folks who don’t need it all.

A socialist approach at the juncture of turning protectionist
Well, when I place my hand over my heart and think hard, I feel in complete accord with the approach adopted by the Democrats. It is said that, we need to clear the clutter inside our own homes before we look outside...and this is exactly what Obama is adamant to do before he creates and makes-easy avenues of growth, employment, and profits for the rest of the world.

But in the same vein, mulling over this grave concern using the super rational brain, it conversely feels like America is at crossroads supporting a myopic vision that indeed will not last for long. Moving on, the Democrats will not only face strong repercussions and condemnations from the rest of the world...but in the bargain will face bans and boycotts by many a people and governments of the world.

Towing away jobs
Public and government hue and cry over the act of outsourcing implemented by the corporate sector around the world has always been condemned for towing away jobs from numero uno nations to nations who propose an awesomely low labour cost and corporate taxes. The Oxford dictionary very simply defines the word outsourcing as “arrange for work to be done outside a company”. While in today’s context, the same word connotes a different meaning. In fact, today it gets nothing less than the same treatment that an F-word receives.

Coming to think of it, “Outsourcing" is as much as a bad word for Americans and Europeans than it is for an average employed Asian. Today Corporate India and other Asian countries prefer outsourcing jobs outside the organisation (locally) rather that hire or sustain a full time employee on the same job. The only difference here is that the job is towed away from one Indian to another Indian at a lower cost. Perhaps, if the world was not demarcated with borders, no country would make a fuss about outsourcing jobs elsewhere...because then eventually a job from one human being would go to another human being after all.

Balancing globalisation
Before globalisation was ever talked about, the United States of America accounted for around 30% of the world's GDP and almost remained at that position for most of the 20th century. However, with opening up of the global economy into a single economic competitive arena, developing countries have got their place in the sun...so much so that those days are not too far when one of the BRIC countries will become the world’s largest economy and will grab the 'most powerful country of the world' title from the US of A.

If one door is shut, there is always another door that opens up...and precisely, if USA shuts its doors to other nations with a protectionist agenda of restricting local companies from tapping markets globally, it will not only worsen American woes but will isolate them from the rest of the world.

Implementing a socialist approach like what Obama is talking about is undoubtedly essential for the less fortunate middle class people of America, but at the same time closing doors to the rest of the world can boomerang badly. There is an urgent need of taking a middle path and clearly there are no easy answers to it.

Post script: On after thought
It would indeed be best if nations would be governed by two Presidents at the top...one with a socialistic ideology (like Barack Obama) and the other with a more capitalistic approach. This will help nations plan correctly taking a more balanced middle path to success.

Thanks for visiting my blog. Do write to me with your reactions, opinions or critical comments at simplymearl@live.com or leave your inputs in the comments tab below.

Before I sign out, as I always say take very good care of yourself and God Bless you and this world!

4 comments:

Anonymous said...

Hey Perfectionist!!!

How you doing these days!!!

So u being active now-a-days a bit.. may be many things around you are disturbing you always...

Great!!!
Happy Writing.....

C ya
Gopal....

Uma said...

Hi Mearl.

A well written contemporary article, which is already rolling the Heads of IT Cos n Ministry.

Well, Obama’s socialist approach in a market free capitalist nation. I am not surprised by Obama’s policy decision which is driven more by compulsion. This was an expected move wherein every nation wl & must 1st safeguard its economical and social interest. There is no question of compromise wherein the ppl who have voted u are unhappy n disillusioned. The west seems to have now realized the pitfalls of Outsourcing.

Outsourcing is the buzzword all over world when it comes to doing business, b it small or big. India is exploiting the concept of “Outsourcing” to its advantage while it earns millions of dollars thru exports and all the tax breaks it enjoys for setting up shops in the SEZ across the country. Now with the turn around in the global economy, growing unemployment and recession hitting US & Europe we need to u/stand the ground reality of “Outsourcing” and the repercussion it can have on this industry.

While Outsourcing has done all the good in terms of opening up new vistas and avenues, there was always an element of the unexpected in the west which wl turn the tables. Let us not forget, Country’s human assets are of prime importance rather than trading with another country.

While Pvt companies irrespective of borders have just 1 Agenda: Maximizes profit, cut cost/increase productivity with minimum manpower. The way in which outsourcing is implemented; very soon companies may have just finger tip staff on their pay roll. Imagine every dept wl b Outsourced to different companies……..how does dis sound. “I am fm HR outsourced fm ABC Corp”, “I work for the Finance dept sourced fm XYZ”, and similarly introduction fm Purchase, Operations, Facilities & IT depts.
Here is a classic case wherein the staff r all administratively associated with different umbrellas, but r coming together on a single platform to perform their different functions to drive another Alien company.
While the Alien company functional bosses flex muscle and hold the gun over the head for better efficiency and results or terminates contract. Their Management wl b patting their back 4 all the saving they hv done to the company. If all start doing this, which is what the competition is all abt, the country wl end up with no doubt more unemployment. Profits take precedence over social obligation. I know v do not run business for charity but not at the cost to c ur neighbor jobless, hungry & struggling to make both ends meet.

Management should think of better processes that wud link on how to Optimize not Maximized profit employing the required strength. This wl ensure that more n more ppl wl be employed which wl indirectly show up the in-depth analysis and efficiency of the product/system. In other words deliver value added service or walk an extra mile. This way u not only discharges the social obligation but also optimize ur profits. I am not against development or automation. Wondering where wl the loyalty of those Outsourced employee b, to the parent company who pay them their monthly cheque or 2 the company where he works under pressure 2 produces results. For all that matter the employee works like a robot not bothering to which body he belong expect the Money he earns.

With unemployment in India on rise, what we in India need is Job Creation, Sustainability and Security; which Outsourcing just manages to give in a temporary reprieve. I would want to replace Outsourcing to Insourcing for which India has its resources in abundance, may be not in all the skills set, but in majority of them.

Mearl,I agree with ur “Post Script : On after thought”, good idea to have 2 Head of States so as they find a middle path rather than be inclined to either Socialistic ideology or the Capitalistic approach.

Jai ho, keep writing.
Cheers

Mearl Colaco said...

Hi Uma,

Superb pointers and illustrations...I must say! Rightly said, the "Outsourcing" mantra not only happens across borders but is even more visible and exploited as a competitive strategy within a country itself.

To illustrate, in a recent outsource business deal in India, Jet Airways signed an IT deal with IBM for a period of 10years. 45 plus employee of Jet Airways have been desptached to IBM after the signing. Now whether these Jet folks will be able to retain their jobs is to be seen. But loyalties will change for sure.

In fact, every corporation should work in union with the government. If the govt.'s agenda is zero-tolerance to unemployment, it is true that the organisation should support the agenda. But at the same time, making sure that in an effort to do good which is short term, we do not loose out on something bigger in the long term.

Social service is good for sure...but it should not be done 100%...there must be competition. 100% social welfare by the govt./corporation for the people…will give birth to people who are laid back with a “chalta-hain” attitude….and then "excellence" and "hard work" and "never-say-never" attitudes of people will be a far fetched reality.

Cheers!
Mearl

Mearl Colaco said...

Hi Uma,

Superb pointers and illustrations...I must say! Rightly said, the "Outsourcing" mantra not only happens across borders but is even more visible and exploited as a competitive strategy within a country itself.

To illustrate, in a recent outsource business deal in India, Jet Airways signed an IT deal with IBM for a period of 10years. 45 plus employee of Jet Airways have been desptached to IBM after the signing. Now whether these Jet folks will be able to retain their jobs is to be seen. But loyalties will change for sure.

In fact, every corporation should work in union with the government. If the govt.'s agenda is zero-tolerance to unemployment, it is true that the organisation should support the agenda. But at the same time, making sure that in an effort to do good which is short term, we do not loose out on something bigger in the long term.

Social service is good for sure...but it should not be done 100%...there must be competition. 100% social welfare by the govt./corporation for the people…will give birth to people who are laid back with a “chalta-hain” attitude….and then "excellence" and "hard work" and "never-say-never" attitudes of people will be a far fetched reality.

Cheers!
Mearl