Outsourcing is the single biggest contributor to mass unemployments in western countries and an inhibitor to economic growth. One of the worst contributors to western economies is outsourcing and visa-work permit issues to indian or eastern european outsourcing companies. In fact, it promotes foreign talent, while reducing opportunities for local talent pools. While western economies have over the last few years had a dry spell in growth, they have channeled much of the growth potential into developing and emerging countries - putting private organizations before local taxpaying individuals that comprise the public.
There are fundamentally key things that hurt western economies:
- Outsourcing to india or other eastern european countries on the cheap - when you could be recruiting, re-training, and promoting local talent
- Issuing visa/work permits - when you could be recruiting, re-training, promoting local talent
- Dodging the bullet by saving costs through foreign hires means in long-run your customers suffer from lack of quality and service
- You end up putting your customers second before costs - but it is the customer that drives revenue
- Using foreign individuals means you depreciate the value of your local currency as it gets converted more frequently into euros and rupee
- Lack of local jobs means business pack up and mass unemployments as consumers spending reduces
- Outsourcing inevitability means non-compliance, likely not compliant under local laws, likely you will have to re-build and re-design the systems again, additional costs, lack of accountability, lack of training, where the costs all add up to more complex situations, and plenty of risks not to mention of not meeting local standards of care
- Difficult to manage data transformations across countries and jurisdictions
- In many cases passing the buck for responsibility and accountability means unethical practices emerge within organizations
- Foreign individuals form a clique so they only look to hiring their own and promoting their own, which means local talent suffers
- Payscales get effected in countries as they have to constantly compete against foreign individuals who may be willing to work for less, often challenging local living costs through inflation
- Local businesses suffer who look to hiring local talent pools, while larger organizations outsource on the cheap
- The local talent pool may also be potentially an element of the customer pool in the local markets
Countries in first instance should impose restrictions on the issuance of work visa/permits to employers where they are required to seek local talent, then have a complicated process to justify requirements for foreign talent recruitment. The same should go for multinationals who work across countries where they should be expected to source local talent pools in the first instance.
