Just some couple of months back, outsourcing offshore to famous destinations such as Philippians and India was an in-thing, without any pronounced contention or strict regulation.
But, the whole outsourcing landscape in the United States changed when a new government brought a new order. The 2016 USA presidential election that ushered in Donald Trump brought a drastic change in the way outsourcing has been carried on in the United States hither to.
So, What’s the Change all About?
The change which some advocates of outsourcing has termed ‘disruptive’ focuses on self-centered act of retaining all the jobs at home and not giving tangible room for global workers to partake in American jobs. In fact, the new order promotes pulling out the TPP (Trans –Pacific Partnership) agreement, as well as encouraging business owners to invest in operations taking place in America.
This in return results in a ripple effect across outsourcing industry (particularly the tech segment). Of course, outsourcing industry is known to rely massively on oversea talents as well as global talent. The present operational mode of the tech outsourcing industry is tentative and has placed tech outsourcing in a state of fluctuation.
What Do all These bring to the Table of Businesses that Heavily Rely on tech Outsourcing?
Now, the big question is; what does the future look like for businesses relying on outsourcing services and outsourced talents to meet their business tech needs? As a result of the threats and penalties marshaled out by the U.S. government against business that would use offshore resources in executing onshore tasks, a lot of companies have sent outsourcing providers packing.
In the year 2016 and 2017, renowned outsourcing providers sent thousands of their workers packing. Typical examples include Cognizant and Infosys. In India and other destinations where these companies have built flourishing outsourcing centers, business has practically come to a grind as workers are being dismissed.
In order to dance to the tune of the U.S. government, these companies resorted to hiring workers in the United States and re-establishing outsourcing centers in the remote parts of the United States, with the aim of employing local talents.
This whole all-new model will only end up shattering the original intent of outsourcing; which is to lower business cost by hiring offshore hands, in order to maximize profit.
Also, hiring tech outsourced services to execute business tasks will no longer be based on the best talent but on emotion – the mandate to hire local providers to keep jobs at home.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.
1 thought on “The Change in Outsourcing Landscape: A New Government, A New Order”
This is one of the best and most concise articles I’ve seen on the subject. Good work
What a great article… can’t wait to start testing them out!
Great information Sir.