Macchars don’t wear sweaters

To Offshore or Not to Offshore, That is the Question

Posted on: February 19, 2007

I read an article today, about a one man crusade against offshoring of jobs, by an American who had lost a job at Siemens to some Indian software developers. But it struck me (perhaps because of some deep rooted patriotic feelings) that if you support and live in a capitalistic system you are bound to be at the receiving end of the market forces sometime. The market knows no right or wrong, it knows only efficiency, effectiveness and cost cutting. In the past centuries manual labor and artisans (especially in colonized countries) lost their jobs to the wonders of industrial age. A machine which was hugely more efficient than human labour, and could do 100 people’s weeks worth of work in a day, cost a hundred people their livelihood.

Even now, more efficient products and services are causing indigenous industries a lot of pain.

The same market efficiencies are now working in a somewhat different manner where an intellectual worker in the third world can do the work of a developed country’s intellectual worker more efficiently.

I guess my post reeks a little bit of tit for tat. And tit for tat always leads to strive. Because most global strife, I think, is caused by historical vendetta.

Being a welfare state, I guess, a govt has to safeguard its citizens against the vagaries of market forces. And there is a lot of human tragedy involved when people are displaced from work, so their protestations are understandable.

But I cannot see offshoring as a bad thing, because it is leading to a flow of prosperity from the west to the east. And it is all because of your much lauded and touted CAPITALISM.


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