Far From Neutral Notions - Philippine politics, culture and stuff

Just thoughts on outsourcing

I once noted in a previous post that the real peril of outsourcing is not the risk of ‘losing seats’ but becoming too reliant on the revenue the industry generates. However, this recent news report is cause for concern:

While the news article pertains to India, the PhiIippines may take a harder hit; I said may because it can go either way: if the US goes into a recession, they may be forced to cut non-essential IT services (like run-of-the-mill tech support). Since the essential services (like IT security) are normally outsourced to India and not the Philippines, a lot of TSRs may lose their jobs here. Or, the US companies, forced to cut spending further, will opt to bring their business here, in which case there’ll be a lot of openings for the more tech savvy Pinoy.

Fortunately, the former scenario seems less than likely, despite strong objections by some US politicians, as studies show that offshoring and outsourcing will become standard practice by 2006.

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