Outsourcing as an Economic Indicator
© Michiel2005
In yesterday's Business Week, Mehul Srivastava described a decline in salaries and turnover in Indian firms, no doubt caused by the declining economy. That certainly parallels the global recession – particularly in areas such as technology investment and long term deals.
Ultimately, it will be interesting to see whether offshoring becomes a leading or lagging indicator of labor market growth over the next two or three years. On the one hand, one could expect that firms will be reluctant to grow their own staff – instead relying upon outsources to pick up the slack as markets improve. On the other hand, there is lots of cheap, readily available skilled labor in the U.S., and companies may decide to grow their internal or on-shore outsourced relationships prior to moving offshore.
After the recession is finally behind us, however, we will have some empirical data as to whether offshoring acts as a leading indicator to labor rebounds or lags behind it. Then, economists may have a new indicator to rely upon when predicting the end of difficult times.
3 Comments
Comments RSS
TrackBack Identifier URI
Leave a comment
I am the member of Micro Tasking, really helpful to me, I was surfing about Virtual Assistant Service and I came to know about this service. I tried one sample task through “Do My Work”, and my task was successfully completed before my expectations, I really appreciate their dedication towards work and then I became a member of this company and I can proudly says that “I am a successful member”!
I would suggest the service of Micro tasking VA service (http://www.microtasking.net/). It is very useful and efficient. Cost of service is reasonable. Quality of service is really good!!
-Balaji
Comment by Balaji on September 24, 2009 1:57 pm
We are online florists and we help you to send Gifts and flowers to your dear ones to India. We undertake same day delivery. We have a wide Range of Gifts are available for all kind of Occasion. http://www.giftwithlove.com
Comment by shallu001 on September 25, 2009 2:10 am
I don’t think people will stop offshoring. Businesses right now are putting big money into starting headquarters here (Argentina) – HP and IBM for example – and I don’t think it is a temporary solution for them.
Comment by 5CA on December 3, 2009 8:33 am