26 March 2015
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IT Outsourcing—a boon or bane? This question is pretty tough, and especially for a powerhouse economy like US, however, the present trend in US speaks much about IT outsourcing, IT support services to emerging players like India and UK. The penchant of US outsourcing its services has borne a big hole on the job prospect and our Commander-in-Chief, Barrack Hussain Obama is pretty much optimistic towards bring those old days where growth and employment was ubiquitous. However, the fight between Democrats and Republicans doesn’t concern a common man here, however, it is important to see that outsourcing of IT support and IT services needs to be checked. Though companies back here are trying to get off their responsibilities, but while doing so they have severely impacted the prospects of the home players.

The capitalist traits of US is compelling them to outsource the IT needs to third parties like India, Japan, China and Philippines, the main motive behind this trend is to get their job done at low cost and amass huge amount of profit. However, while doing that they have widened the unemployment level and many people because of worst policies of the Democrats are suffering in the worst way.

If one has to go by record then from 2001 to 2013, the trade deficit of good has widened with China and created a hiatus, the deficit stands at $240.1 billion and the annual wage loss of the citizen in the country stands at whopping $37 billion. Such loses on account of outsourcing of IT, manufacturing, tech support to companies based in UK, India, China and Philippines can never be justified, as the interest of people comes first before crony capitalism.

Image Eroor


Courtesy: US Census Bureau

So, if necessary steps are not taken, in that case, it would not be far when mutiny and protests would throng Wall Street, Madison Square Garden and in Capital Hill.

So, let’s have a quick look at some of the facts about the trending IT outsourcing traits that US is following and that has to be stopped for further aggravating the job losses.

  1. All those multinationals that are based in US have outsourced their jobs to India, UK and Philippines and this has rendered 2.9 million people jobless in US from 2000-2013. There is also an ignominious report that Wall Street Journal unveiled, it says that 35 US multinationals have added jobs much faster than other employers based in US, and three-fourth of those jobs were outsourced to oversees takers.
  2. The manufacturing sector has also nosedived in terms of generating jobs for US citizens, rather, they are outsourcing it to third world countries. There has been collapse of 8.5 million workers in the manufacturing sector, the main reason is that US is outsourcing its manufacturing needs to third parties in the third world countries like China, Philippines, India, Japan. At the same time, they are also looking forward to European Union that is facing the stagnancy to employ cheap labor for growth and expansion.

So, it is high time that this trend must be stopped, else it can wreak havoc and create mayhem in the economy in long run. US would not in any probability like to witness a “Wall Street—we are 99%” scenario before the outbreak of the next presidential election in 2016. So, Mr. Obama, the midterm elections were just a trailer for the real picture that would be unraveled in 2016. So, it is high time to wake up.


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My name is Anurag Sharma.
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