Thursday, June 09, 2005

Outsourcing, Good for business but what about Australia?

Outsourcing seems to be all the rage at the moment in and across most industries but what effects does outsourcing have on the rest of Australia?

lets take a look a few things that happen when outsourcing happens;

- People/staff get laid off
- These people stop earning money for while and for the industry that they are in becomes more competetive.
- Other employers can barter for lower wages becuase of the competition for jobs.
- The money that would normally go to the australian employees then leaves Australia therefore providing more money to other countries than australia. this provides more power to others while making Australian's poorer.
- The product or service that this company sells is downgraded due to employee disatisfaction (usually).
- The company that outsources usually loses product knowledge.

So on a grand scale how does outsourcing help?

in my view its doesn't i believe its makes other countries richer while making us aussies poorer.. the poorer Aussies are the less spending money we have and the less markets the companys have because there are less people who can afford to buy products

so why outsource? well to make you company more profitable in the short run without thinking of the future.

1 comment :

  1. We're all just so "busy" these days.Thank you for the post. This is very helpful to us.

    ReplyDelete