The United States is just recovering from an economic slowdown. This March, over 23,000 Americans lost their jobs in the private sector. The gridlock in the United States financial system is just slowly easing out as the stimulus money put forward by Pres. Barack Obama's administration finds its way to businesses and borrowers.
With this information, one may ponder at the thought of why the Americans are increasingly outsourcing a lot of technology related jobs in the global marketplace.
In short, why do they want us (people in other countries) to make money online when their citizens could benefit from these jobs?
The answer may not be as simple.
It is tempting to point out that most of the jobs being outsourced are repetitive, back end, support jobs. However, it is also worth noting that an increasing number of outsourced jobs are also becoming technical in nature, like software and application development.
Could this mean that there is a lack of software developers in the United States? Far from it. Historically, innovation from technology companies have mostly originated in the United States. In fact most of the world's foremost tech companies are headquartered on American soil. These are Microsoft, Google, Yahoo and Apple.
The United States was, and still is the leader when it comes to technological innovation.
They produce the technology, the rest of the world (you and me) advertise, sell and consume it.
It makes sense if you consider these observations:
- Manufacturing of technical hardware is done offshore in locations where there is cheap labor. A bulk of this is done in China, Taiwan, Hong Kong, Singapore and some of it in the Philippines.
- Business Process Outsourcing is primarily offshored in India and the Philippines. India for its technical expertise and the Philippines for its fluency in English.