Who is benefiting from outsourcing in India?
published: March 10 2008 10:46 PM updated:: March 11 2008 10:38 PM

Outsourcing in India has resulted in millions of jobs and even more money for the newer generations. With the impact of globalization and Western influences, old ways of life have dramatically changed in a few short years.

The debate among outsourcing has been heated, as American workers want to keep jobs here and not export them over seas, leaving as much as three million Americans unemployed.

The benefits are simple to see.  America gets cheap labor and India gets jobs. However, who is really benefiting? Americans are losing jobs and India is losing the values they have been living by for hundreds of years.

The city of Bangalore was the first city in India to hook up with satellites and is now linked to the outside world. In the metropolitan area, hundreds of thousands of young adults are working in call centers that in large benefit the American global market. Many global companies also have billions of dollars invested in the research and technology done in Bangalore.

The benefits are simple to see.  America gets cheap labor and India gets jobs. However, who is really benefiting?Outsourcing has given the younger generations in India a chance to live away from home and have jobs, which in tradtional relgious and ethnic practices in India, don't happen often.

Not only is outsourcing benefiting the young adults, but children in schools are able to have access to computers and gain education through local schools.

Though outsourcing has resulted in education and jobs for many people, there is still a large part of the population that wants to prevent globalization from occurring.

The Rastriya Swayamsevak Sangh, or the RSS, is a Hindu Nationalist organization in India that strives to keep traditional religion the basis of life. Traditional Hindu beliefs revolve in part around the caste system, or one's social stratification. The higher one's caste, the more benefits and luxuries that person will have throughout life due to behaviors in a past life.

Though the caste system was outlawed many years ago, strong followers still practice it today. An example of the caste system is demonstrated in Bangalore between the metro area and the shantytowns. Extremists in the RSS and other followers believe that outsourcing is having a direct impact on the traditional ways of life one is supposed to abide by.

Having said that, globalization is interfering with the life India has lead for hundreds of years. In a short amount of time, outsourcing has lead to people abandoning their beliefs in order to benefit Americans. Not only is this affecting families who have followed traditional values, but also their children are becoming more materialistic than desired.

Outsourcing is destroying years of culture and identity for millions of people in India. Even though it may be harming the traditional ways of Indians, it has resulted in jobs and education for much of the population that would have been inaccessible without globalization.     

So who is outsourcing affecting the most? Is it hurting Americans because of job loss? Or is it helping America by having cheaper labor? Is it hurting India by demonstrating the caste system and harming traditional beliefs? Or is it helping others by providing them with jobs, money and education? The facts are out there, all you have to do is decide.

Editor: Amanda Wills

Comments

#1

Harry commented, on March 11, 2008 at 1:38 a.m.:

Straight off the bat, let me start by mentioning that I am an Indian, born and bred in India, educated in India and working in India. Let me also mention that I do not work, directly or indirectly, in the outsouring industry. I find your article to be very shallow, in many places factually erroneous and actully quite stupid. The outsourcing debate is not a religious one as your author makes it out to be. It sure is a cultural one, because for the first time in Indian history youth in large numbers (albiet only in a handul of large cities) are earning something ressembling an acceptable developing country wage. This has coincided with a global media, communication and connectivity explosion....and Indian youth are thirsting to merge in this gushing stream of global culture. The outsouring industry has managed to catalyse and bring to fruition a latent desire of Indian youth to be seen a world citizens. To embrace and assimilate any culture requires one to give up some of his own. But given the large number of Indian youth set to join this global cultural bandwagon, you can bet your bottom (weakening) dollar that they will bring their own influences to bear upon global culture. Outsouring has several undesirable consequences for both the US and India, but surely promotion of the caste system in India is not one among them. As a matter of fact, the outsouring industry is one place where caste does not count and the sheer numbers they employ does not allow them to get too picky. The readers of your paper need to know that there is a very high level of reservation in India's education system for children from the lower castes. Many of India's most influential political leaders now come from the lower castes. In fact, while the US might just have a black (and half-Mulsim) or woamn President in 2008, India has had Presidents and Prime Ministers who have been women or Muslims or from the weaker sections of society. The scourge of the caste sytem will only be removed by education and employment opportunities. Outsourcing has a positive role to play for India in this regard. As for the US, the cycical nature of megatrends is against you and while it is premature to declare the demise of the US, it is probabaly safe to say that its salad days are behind her.

#2

Tina commented, on March 11, 2008 at 1:45 a.m.:

I must say, this is indeed a very good article. According to me both parties have some kind of benefit, unless no one would take so much trouble to outsource work offshore.
http://www.outsourcewebsite.com

#3

Shawna commented, on March 11, 2008 at 11:03 a.m.:

Well written Ms. Kind.

#4

Ahmed commented, on March 11, 2008 at 2:11 p.m.:

I am happy for the changes that are taking place - education and awareness of International culture is removing the bigotry associated with the traditional Hindu thinking and empowering the lower castes.

#5

NS commented, on March 11, 2008 at 2:57 p.m.:

If you are an American reading this article, it might sound little amusing. If you are an Indian, you would just laugh at it. Let me point out some of the shortcomings:

"Outsourcing has given the younger generations in India a chance to live away from home and have jobs, which in traditional Hinduism, doesn't happen."

If you look at traditional hinduism, kids were sent out of home for studies and they would return home at the age of 25 (ashram vyavastha). Strange that I am hindu but I never knew that in traditional hinduism I wasn't permitted to relocate. Darn, why did I lived in so many different places for job.

"In a short amount of time, outsourcing has lead to people abandoning their beliefs in order to benefit Americans. Not only is this affecting families who have followed Hinduism, but also their children are becoming more materialistic than desired."

I sense here that the author is frustrated that Americans are lossing jobs to Indians. Ofcourse working in call centers or R&D centers doesn't demand abandoning beliefs and certainly the intention is to earn more, not specifically to benefit americans. Also, I have no clue how the author comes to conclusion that this is affecting families who follow hinduism.

India is being affected by development in exact same way as any developing country would be affected. Due to the change in economic parameters, culture is definitely being affected. The culture of India is equally applicable to a hindu, muslim (no, Indian muslims are not arabs although there may be some wannabes), christians and other faiths.

#6

Jay commented, on March 11, 2008 at 6:05 p.m.:

Madison, be Kind and look at the label on your shirt and tell me where it came from, or the coffee pot, or camera, ot TV, or Microwave, or laptop, or cellphone, or your Honda.

Five hundred years ago, Columbus, set sail to discover a new route to India (no offense folks, discovering America was not his intention). Trade between material rich India and Europe was flourishing since Roman times, but after the 7th Century AD, it stagnated because of trouble in the Middle East. It was the Hindus who discovered zeros and ones and the decimal numbering systems that we use today in computing. It is mistakenly called "arabic" numberals because it was passed on to Europe via (you guessed right) Arabia. The Roman numerals used characters like M,V,X etc and guess what, after counting a thousand, it ran out of alphabets. Globalization was nothing new to Hindus.

Then the question arises, why is america outsourcing to India and not to say Columbia or to our biggest terror ally Pakistan(after all they split only 60 years ago). Why to india out of all the 199 countries of the world. The answer is this. IF YOU HAVE A BETTER MOUSETRAP THE WORLD BEATS A PATH TO YOUR DOOR. Five Hundred years ago Hindu India was the envy of all the world. Then came a spell of foreign domination first by Muslims, the by European colonists. It ended 60 years ago, and this ancient civilization, though still traumatised is on the mend.

#7

Me commented, on March 11, 2008 at 7:43 p.m.:

First of all, Jay, your post makes no sense and has no relative opinion on this subject. We are talking about thousands of years ago, were talking about now. And why are you talking about labels when the article refers to call centers and computer technology?

Secondly, I think this is a very touchy subject and everyone is going to have a different opinion, so don't sweat it Madison. Some people are just ignorant.

I think this is a well written article and it takes guts to look at the other side of things. All Americans think about is their jobs and not how it's affecting others. There are so many sides to this story, focusing on one aspect is hard to do. I want you to know I have seen the Thomas Friedman video and it's definately different from what a lot of people think and I could link a lot of similarities to your story and his.

Overall, keep writing about subjects that will get people talking. If it's different, people are going to get heated and it makes for quite the spectical.

#8

John commented, on March 13, 2008 at 7:50 p.m.:

I find it funny that we Americans, while living in the US try to assess how we might be influencing other religions. But then who knows, there might some Madison equivalent living in India, who might be writing that introduction of yoga in American culture is changing the traditional christian values. With lack of research, I personally feel both claims to be equally illogical.

#9

JOE commented, on March 29, 2008 at 12:41 a.m.:

I have not spoken with anyone regardless of industry that has gotten outsourcing to work in India. Indeed, nearly 70% of all outsourcing effors to India fail to show any positive impact to the bottom line. The American workforce remains the most talented and productive work force in the world. Companies are attracted by the cheap wages but forget "you get what you pay for". They fail to recognize the amount of training the outsoruce vendors need, and the amount of internal oversight needed and rework. In the end, a quality work product is lacking and internal resources are used to complete the project. America is and will be #1 for a very long time my friends. Hilary and Obama both have it on their agenda to provide incentives to american companies who employ american workers.

#10

tinasilvee commented, on April 4, 2008 at 7:57 a.m.:

Outsourcing has so many benefits:
1) Cost Savings
2) Time Zone Benefits
3) Quick Turn Around Time
4) Standardizing Business Processes
and many more....

http://www.outsourcewebsite.com

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