What’s happening in the world of outsourcing?

Outsourcing in BangaloreAccording to this story Indian outsourcing companies, including InfoSys, are outsourcing some of the work it had outsourced to it to smaller cheaper companies. Once you finish considering the irony, and what this might mean for continuing to drive down wages and working conditions across the world, it also raise interesting questions about the privacy of customers data. If customers were concerned about their data being sent offshore in the first place how will they feel when that overseas company then resells the contract onto the cheapest bidder?

Meanwhile in the US workers who lose their job to offshore outsourcing may soon be eligible to compensation and other financial benefits thanks to a senate bill proposed by senators Max Baucus and Olympia Snowe. The US already compensates textile and steel workers who lose their jobs to foreign workers. The new bill would expand this right to outsourced call centre and IT workers as well. I guess many US employers, like many other employers, would rather pay workers to be out of a job than pay them to do a job.

(thansk to Paul Keller for the photo)

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