Of course, the market will dictate the price of every commodity. Some entrepreneurs have this idea that they can settle in poor provinces and make a killing by paying the locals low salaries. What they fail to realize is that word goes around fast and these local talents learn that their counterparts are getting paid a few times their take home pay. Unsurprisingly, the skilled talents leave for higher paying firms.
Read the story here..
11/17/08
Will Obama be able to stop outsourcing?
The appreciation of the US dollar against the Philippine peso is a blast of fresh air for the Philippine outsourcing industry. With most employees getting being paid in the local currency and the companiescollecting in US dollars, the ForEx decline had made the business a bit more profitable.
This means that companies can possibly lower their prices to maintain their existing clients and even gain new ones. The US market remains the largest target of the outsourcing companies that are based offshore and Obama’s inclination to provide incentives to those who provide jobs inside the US territory will probably be a hurdle for some companies. Overall, however, there will be no stopping the outsourcing of jobs. The return that it gives to the outsourcers is so tremendous that the only way to reverse this outsourcing trend is to physically ban it.
This means that companies can possibly lower their prices to maintain their existing clients and even gain new ones. The US market remains the largest target of the outsourcing companies that are based offshore and Obama’s inclination to provide incentives to those who provide jobs inside the US territory will probably be a hurdle for some companies. Overall, however, there will be no stopping the outsourcing of jobs. The return that it gives to the outsourcers is so tremendous that the only way to reverse this outsourcing trend is to physically ban it.
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