Irony, Unfair, or Opportunity

As repeatedly mentioned, so-called business process outsourcing is one of the strategic approaches to generate demands in the third world countries. These countries used to provide cheaper factory laborers. That is why; a lot of industries used to build their factories there. It is a common sense. While this trend continues even nowadays, the more prominent one is the attempt that business process as such is going to be handled in these countries. There are two reasons for this tendency.

The first is that in our computer age networking systems have been incredibly advanced and achieved the real-time global infrastructure such as internet based communication; and international courier services have been also incredibly sophisticated. In such futuristic circumstance it seems that we do no longer feel any distanced inconvenience or difficulty for our communication. In short, we can experience the worldwide wholeness simultaneously in both mass media and business networking. Not only huge multinational companies but even the variety kinds of small-medium scale firms can now develop their transactional network globally.

The irony, however, is that even under such global circumstances there is a clear and sometimes huge socio-economical gap between the first world countries and the third ones. This is an irony indeed.

Because of the advanced global networking the educational system and its knowledge distribution have been quite standardized throughout the globe. This means that if you are a collage graduate, then regardless of your nationality you are considered as educated. There is an IT specialist in the Philippines; at the same time there is also the same level of IT specialist in the US. Both share the same knowledge. Nevertheless, the difference is that the former salary is much lower than the latter due to the huge economic gap.

Likewise, if you are a medical doctor, then to earn the higher salary you should work as a doctor in the US, not in the Philippines. The cost of your profession is more expensive in the first countries. This is an irony and of course looks unfair.

The cost of professional knowledge is differed depending on which countries you stay and work. This is why; as we know well, a lot of Filipino professionals are leaving their countries to get the better jobs abroad. It is not only because there are few job opportunities in the Philippines, but rather because the cost of knowledge is much lower. In fact, in some provinces of the Philippine archipelago, the lack of medical doctors is one of the severe social problems. Many young doctors have left the country and work in the US (first as a nurse then a doctor). Thus, in the provinces even retired old doctors sometimes have to go back to the hospital to cover the lack of such young doctors.

The bottom line is that there are highly educated people but their salary is low. That causes the problem of losing the professional employments and of course that will weaken the country in the long term. For, many highly educated people are working for the US not for their own country.

However, there is an alternative view that can turn such ironical, unfair reality to somewhat beneficial, which is BPO – Business Process Outsourcing. For example, if you want to reduce the cost of the organizational expenses, then one good idea is to move some of the departments into the other oversea location where you can have the same quality of service and process with lower cost.

For example, what if the HR department of one Australian company will be transferred to the Philippines and can be handled by highly qualified Filipino employees? That is a kind of ideal approach for cost cutting. You can generate certain employment in the Philippines; at the same time you can reduce the cost in Australia. Of course, things are not as simple as described here and yet this shows one basic mechanism of outsourcing itself especially in this global business environment.

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