It’s a Fact… Over 3.4 Million White-Collar Jobs and $136 Billion in Wages Will Shift Overseas by 2015!

Today literally hundreds of thousands of jobs have already shifted offshore and each passing month thousands more are being transferred. It’s hard to avoid the virtual avalanche of news reports and articles on the topic. Perhaps you’ve even had a close friend or family member directly impacted by outsourcing. In fact, your own job may have been or is in the process of being sent offshore. An estimate from two economists at the Organization for Economic Cooperation and Development in Brussels, recently indicated that about one fifth of the employment in the developed world is at risk of being "potentially affected" by global outsourcing.

Let’s face it with all the buzz in the air about outsourcing, very little attention is being paid to YOU, the US employee. You’ve worked hard to get where you are in life. Perhaps you have a mortgage to pay, a retirement to plan not to mention your daily responsibilities to your children, friends and family.

I understand the pitfalls, side effects and benefits of global outsourcing better then most. That’s because I’ve personally worked in the global marketplace for over XX years in key Fortune 500 businesses such as Cisco Systems, IBM, and Accenture. I’ve witnessed firsthand the impact of outsourcing and have sat in the offices of offshore providers, surrounded by their employees all speaking languages I didn’t understand. These experiences have given me a unique “insider’s” perspective on offshore outsourcing.

Whether you realize it or not there is still time to adjust, adapt, and capitalize on the opportunities being presented by global outsourcing. Let's take a closer look at what’s being said about offshore outsourcing and examine a few of the myths and realities a bit further...

Myth#1: US jobs are being lost due to offshore outsourcing.
Reality: Outsourcing is bringing in 112% returns!

It's true that several million jobs have been already lost in the last 30 years as a result of global trade. Yet the reality is that 3.4 million additional new jobs were actually created in the past decade alone.

In fact, when spending $1 on outsourcing a business process overseas, there's actually a gain of $1.12 to the US Economy. Out of this gain, 60 cents is returned to the original employer. In addition, the wages paid overseas give spending power to the overseas employee, and they in turn spend a large part of the that money buying goods and services produced by US companies.

Myth#2: Offshore outsourcing is dishonorable.
Reality: Most global and many medium and small sized companies have joined the outsourcing bandwagon.

In Bangalore (India) alone, about 110,000 people are employed writing software, designing chips, managing computer systems, reading MRIs, processing mortgages, processing tax forms and in several other essential business tasks. This work is being done for American, European, Japanese and Chinese companies, including multinational businesses such as; Intel, Cisco Systems, Oracle, Philips and GE (just to name a few).

There’s hardly any Fortune 500 company that does not outsource part of its routine business operations. Most outsourced jobs relate to support operations that are simply not a part of the American businesses core competency.

What one might consider “dishonorable” could be an innovative or a necessary action for another. In a free market economy, companies rarely worry about whether their actions come across as honorable or dishonorable. The bigger players in most industries, domestic or foreign, are notorious for squeezing the profit margins of their smaller suppliers. Is this an “honorable” thing to do? So runs the blessing and the curse of the free market system.

Myth#3: Outsourcing does not provide the cost benefits as claimed.
Reality: Flexible cost models are possible with outsourcing.

The salaries of offshore workers are only about 10% to 30% of their American counterparts, and an average annual salary of an offshore employee can range from $5,800 to $10,000. This paves the way for substantial savings.

In addition, there’s the potential of shifting from a fixed cost atmosphere to a flexible cost model. In this way firms are better able to regulate their operating costs. The need for software and hardware infrastructure is also minimal because there is less expenditure for upgrading the skills of the foreign workers.

Myth#4: Large cultural barriers are present.
Reality: The diversity has shrunk and the barriers reduced with globalization.

With most types of work sent overseas, cultural barriers do not come into play.  A foreign employee either has the requisite skills to process a mortgage or not.  The foreign subsidiary of an American financial company would not hire a financial analyst in India without the necessary qualifications. For call center related work, a consideration may be that a telephone representative does not understand an American accent, or the caller might have trouble understanding their foreign accent. While these challenges do occur on occasion, they rarely impede the representative's ability to respond to the caller’s question or solve a problem.

When comparing potential offshore countries to determine their capabilities and their personnel quality, companies discover that workers in countries such as India often have excellent English language and communication skills. Furthermore, there is a rigorous education system that produces a highly skilled workforce.

Myth#5: Outsourced jobs are consequently lost in the US.
Reality: There are increased employment opportunities for Americans now.

It is certainly true that millions of jobs are being lost to offshore outsourcing.  However, with growth in industries such as healthcare and financial services, new jobs are being created everyday as well.

Healthcare and financial services industries are predicted to keep growing well past the year 2015. For the American workforce, this translates into a good many employment opportunities. The American labor force has grown by 2.3 million people in the past 5 years, and the ratio of unemployed to the total labor force is declining, demonstrating a healthy trend and real gains.

Myth #6: Free trade, free labor, and free capital will damage US economy.
Reality: Growth, new jobs and higher living standards can only be created by economic freedom.

The so-called “race to the bottom,” forcing American workers to accept lower wages and reduced benefits in order that they can compete with low-cost labor in other countries, is a misconception.

When compared to other countries that put up regulatory blocks and policy limitations, economic freedom in trade and labor career fields has often triggered stronger economic growth in countries that have accepted it. Most experts believe that a strong link exists between economic freedom and a healthy, per capita, gross domestic product (GDP).

If a few jobs are protected from outsourcing by restrictive economic policy, slowed economic growth and dimmer job prospects in the future will be the result. An important aspect of economic freedom is free trade. Many American economists acknowledge the tremendous benefits of free trade because the overall gains from a free trade economy outweigh the pain of lost jobs.

Myth #7: When you outsource a job you lose a job.
Reality: Outsourcing leads to efficiency.

In 1997 President Bill Clinton realized that private firms often provided products and services more economically, and with higher quality, than what the government could provide. He strongly recommended outsourcing as a major budget balancing initiative. Clinton did not intend to create job losses.

He realized that the taxpayers' burden would be reduced if the government worked more efficiently by outsourcing some of its expensive activities to less costly private firms.

From a business perspective, outsourcing involves externally producing a component in order for the business to focus its real expertise on other areas, such as production or marketing of its products or services.

For example, it would be ridiculous for a typical American company to begin to manufacture everything it needed for its efficient operation including office supplies, uniforms and other non-vital operational necessities. It makes sense for the company to outsource these non-vital necessities so that it can focus on other, more important, matters.

Outsourcing provides business flexibility. The standard for outsourcing was for older jobs either to be outsourced domestically or to foreign locations. Due to the advancement of technology and automated systems replacing workers, older jobs have already been replaced with improved technology. For example, over the last two centuries, tractors and agricultural equipment have replaced manual farm labor to a large extent. The drive for efficiency has reduced costs and created a higher standard of living.

Myth #8: Nations like China are receiving most American manufacturing jobs.
Reality: Even China is losing manufacturing jobs, which is a global phenomenon.

It is a general belief that the decline of US manufacturing jobs - estimated at 2.45 million during the last three years - is the result of the exportation of work to low-wage countries. However, the decline of 11% of US manufacturing jobs, between 1995 and 2004, is identical to the average worldwide decline of manufacturing jobs. This implies that America was not the only country to experience such losses. China has lost even more industrial jobs, about 15% during the same period.

This worldwide decline in manufacturing jobs is attributable to increased productivity, greater capital investment and technological advancements. An interesting part of this phenomenon is that the total manufacturing output in the US has increased by 38% in the same period, despite the decline in manufacturing jobs. The present overall production of the US manufacturing sector today is more than the entire economy of China.

The technological innovations that lead to job reduction have been going on for decades. Trade should not be held responsible for this trend. This situation is similar to the 1979 and 1982 timeframe when manufacturing took a beating, but employment recovered due to new jobs created by the new entrants in the manufacturing sector.

Myth #9: Only corporations looking for quick gains benefit from outsourcing.
Reality: Outsourcing can benefit everyone in the long run.

Competition has always led to reduced costs, and outsourcing achieves just that. It reduces costs and creates benefits to every consumer. However, the benefits are distributed throughout our economy, thus the individual benefits are sometimes disregarded.

According to a study by Michael W. Klein, Scott Schuh, and Robert K. Triest, the economical gains due to lower prices and increased trade are noticeably higher than any losses incurred by about 50 to 100 times. In the greater analysis, outsourcing can be beneficial for everyone.

Myth #10: American workers can be protected from outsourcing by the government.
Reality: Protection can lead to isolation, which has failed in the past.

It would be wrong to assume that the government can intervene and protect employees from outsourcing. In matters relating to trade, we can substantially damage our economy if special interest groups gain protectionist policies leading to our economic isolation. For example, steel tariffs were recently imposed, although later rescinded, that led to steel price increases. This hindered competitiveness of US manufacturers, damaged domestic jobs, and violated trade agreements.

The Congress enacted the Smoot-Hawley Tariff Act in June 1930 to protect American businesses and jobs and to reduce imports. Although imports declined by about 50%, exports also declined similarly over the same period. This resulted in the unemployment rate increasing from 3% in 1929 to 8.8% in 1930, and reaching a peak at 25% in 1933.

Now is the Time to STOP Re-Acting and Learn How to Prepare for the Inevitable Changes Associated with Global Outsourcing.

It’s no secret that change can be painful. But change is also inevitable. The only real way to survive it is by preparing and meeting it head on because moments of change also present enormous opportunities to learn new things, to grow yourself, to expand your horizons.

"Offshore Job Outsourcing" is the first book to ever provide all of the answers you need in order to understand the rapidly changing global outsourcing environment – including;

- How to separate the myths and realities of offshore outsourcing.
- 63 important questions you need to ask in order to assess your career risks – and what important warning signs you need to look out for.
- A detailed 11 Step Action Plan that you can APPLY TODAY – learn exactly how to protect yourself and take control in case your job is outsourced.
- How to prepare an emergency financial plan so you are ready for the future.
- 5 Hot, Fast-Growing careers – and how you can break into them.
- How to talk to your friends, family and children about the changing global economy and the outsourcing revolution.

- How you can PROFIT from offshore outsourcing – Over 25 proven business models others are using to make money with offshore outsourcing… and how you can to!
- Learn from people not only surviving outsourcing – but actually thriving because of it! Uncover businesses that are VERY fast and easy to setup with very little startup capital.
- Learn 20 Popular Offshore Outsourcing Destinations and how to tap into their profitability.
- Learn how global outsourcing can help you start a new business venture and help you become your own boss.

But that’s not all…

"Offshore Job Outsourcing" is designed to save you hundreds or even thousands of dollars on professional workshops and training – not to mention endless hours of research. Best of all, it will enable you to be in complete charge of your own destiny by understanding the phenomenon of global outsourcing.

With "Offshore Job Outsourcing" You’ll Learn:

o A brief history of outsourcing.
o What type of jobs are being outsourced offshore, and why?
o Who is pulling work offshore, and why?
o What is pulling work offshore, any why?
o Is offshore outsourcing good for the US?
o Which industry is leading the new wave of outsourcing?
o Insourcing - establishing jobs in US.