Practically everyone is talking about technology or SEO outsourcing or offshoring. These have probably been the biggest tech topics for the past couple of years. Of course, for people in developed countries, outsourcing looks like a lot of skilled tech workers getting laid off. SEO outsourcing is much more than that. Once you take a step back and look at the larger issues, you will be able to truly appreciate the value of companies who outsource to the Philippines.
It’s hard to tell people who got laid off to take a step back and look at the situation from the viewpoint of large companies. Getting laid off is not something you can wax poetic about. However, there is a good reason for governments to allow outsourcing, or any outsourcing for that matter. Sure, putting a cap on the number of jobs you outsource will protect local jobs in the short term, but in the long run, you are putting that company’s stability and economic contribution at risk.
When lower level jobs are outsourced, higher level jobs are left in the company’s home country. When companies outsource to the Philippines, they do not eliminate jobs in their home country. Instead, they improve the quality and evolution of available local jobs.
Losing lower-paying, seemingly menial jobs would mean that what would be left are those that actually have bigger bearing to the structure of the company as a whole. Instead of having one thousand jobs locally, 90% of which are in lower, entry-level positions, a company that will outsource SEO abroad can provide 600 jobs locally, 90% of which are management positions. This is not something that will happen overnight, but if the market changes now, it will happen soon.
International trade principles are also in play. Developed countries are consistently innovating. If a company in a developed country focuses on building one industry instead of just making enough money to survive (which happens when they do not outsource), they will be able to allocate resources for development and market research that are necessary for the company’s future. If a company “buys” outsourcing, then it has the opportunity to “sell” future products and services in the country it outsourced to (and the rest of the world). The cost that a company saves when making the decision to outsource to the Philippines can be used to back up research that can improve its processes and change the way it does business.
Instead of debating whether or not outsourcing steals local jobs or not and how it can be stopped, companies and governments should look into the future and see how outsourcing benefits global economics. That way, this strategy can be studied and used to benefit everyone.