The movement of professional jobs to India and China

Essay by tyouessay May 2004

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The movement of professional jobs to India and China

Since many years ago, highly labor-intensive jobs, such as manufacturing, have started moving to developing countries, like India and China, from developed countries, such as U.S. UK, and Japan. This did cause some problems but not strike at the heart of the United States, since they believed that white-collar jobs would take blue-collar jobs. However, the recent movement of professional jobs across many industries and countries to overseas seems to be causing more worries than ever. As a matter of fact, it is not as scary as many governors think. There are both advantages and disadvantages for companies to outsource. Also the advantages will weigh over the disadvantages when outsourcers manage some relative problems properly.

Unstoppable Overseas Outsourcing

Over time outsourcing started with blue-collar jobs such as manufacturing. Recently it has shifted more towards white-collar jobs, like back-office work, call centers, IT, software programming, and financial analysis, This movement is made possible by advances in communication and driven by increasing global competition.

It provides productive and financial efficiency to the companies. Overseas outsourcing is not restricted to the United State. Many other developed countries are experiencing this situation. Also, the trend has gone beyond large companies. In general, the movement of high-end jobs outsourced offshore will accelerate.

Attractiveness of outsourcing or offshoring to India and China

The following are factors that contribute to the desirability of moving professional jobs to India and China:

Low cost

As everybody knows, the wage of the workforce in India and China is low. Indian engineers or financial analysts usually earn much less of the amount than that their counterparts do in America. For example, according to figures from the international Labor Organization and the Paras Group: while a software engineer in the USA makes...