Globalization Gone Wild: The Other Side of Outsourcing

sweatshop, IT

“Today, outsourcing is not just a trend; it is an integral part of how smart companies do business”, “…a company concentrates on its core business and relies on outsourcing partnerships to get the rest done”
~ Harvard Business Review

In the past 30 years, the rapid pace at which technology is evolving has drastically shifted the modern business climate and the world of technical communications. As a result of these emerging technologies, both the tools we use and the scope of our work as technical communicators has changed. Thus, the digital revolution has resulted in a “blurring of boundaries in our field and our work” due to major changes in economics, management and methodologies. To keep up with these significant advancements, many companies have been forced to shift their product base and find ways to restructure themselves.

Through re-engineering and an adoption of radical new changes many companies have found ways to cut costs. Major layoffs have occurred as a single person now can execute jobs that once took seven people to complete. Moreover, globalization has played an undeniable role in this change.

That is to say, globalization and “improved methods of communication make it economically possible and desirable to work with people from all over the world…”. Consequently, it is becoming increasingly common for companies to send their work to countries such as India, China, Korea, or Brazil. Asa result, outsourcing, is an important factor for companies to keep their competitive edge. According to 2011 outsourcing report“Over 94% of the Fortune 500 companies outsource at-least one of their major business functions”.  With that in mind, it should be no surprise that both the company I work for, as well our clients outsource jobs.

For instance, Wunderman, has offices around the world and takes advantage of its bandwidth by outsourcing jobs. Specifically, the Minneapolis branch utilizes its Buenos Aires office for much of its production work. While 6000 miles physically separate us, we communicate with each other through weekly conference calls, Skype and software called Brandshare to keep tabs on the project. However, there is a difference between the tasks that are delegated to Buenos Aires and the work that stay in house. The projects we send to our off shore resource is oftentimes grunt work and involves little creativity. In contrast, the higher-level work generally stays in house where we can have more control over the project. Overall, despite the language barriers that sometimes occur our Buenos Aires team has proven to be a valuable resource in saving Wunderman both time and money.

Likewise, on the client side, Best Buy outsources a sizable amount of its work as well. While I know outsourcing occurs in the majority of it’s departments, I am only familiar with what goes on in the marketing sector. The bulk of Best Buy’s creative work is outsourced not only to Wunderman, but also to several other creative agencies across the country. This allows them to distribute their workload evenly and hone in on each agency’s specialty. Other aspects related to the production of marketing materials such as coding, subject line testing, and analytical reports are outsourced as well. If that wasn’t enough, Best Buy also utilizes creative resources in India for some projects. Because of the time zone difference, this allows them to work around the clock and have the finished product on their desk the next morning.

While outsourcing certainly has its benefits such as producing jobs and reducing costs, there also are several downsides. It should be no surprise that when work is outsourced at an international level there are oftentimes disparities. While many companies play by the rules, others take advantage of these workers and skirt environmental and labor laws in the process. For instance, these individuals work hard, if not harder than their US counterparts for significantly less pay. According to the US Bureau of Labor and Statistics, the average hourly wage for Chinese manufacturing workers is less than a tenth that of their average U.S. counterparts. Additionally, Factory workers in China are more than three times more likely to get killed at work. With these grim statistics in mind, it is clear these workers will do anything for a job.

One of my coworkers used to work for a different Fortune 500 company that would send her to India for weeks at a time. While this third party business in India was an important asset to company, the picture she painted of her time there was bleak. Each week, the company would bus in workers from neighboring cities up to three hours away to its headquarters in New Delhi. There, the workers typically would work 10-14 hour days without complaining. At the end of the day, instead of returning home, many would sleep at the company campus’s small apartment complex- only to repeat it all the next day. Consequently, families would only see each other on the weekends because it was easier and cheaper to do so. Unfortunately, this practice is common and is a reality that all too many are unaware of.

In sum, it is clear that technology is a driving force of the economy around the world. Our demands for newer, better, faster technology and ways of communicating clearly fuel this practice. As a result, we are reliant upon both these technologies and the foreign workers who produce these products to do our jobs. So, while outsourcing certainly has its benefits, perhaps there is more to consider than the business aspect of it. Maybe, we ought to consider the humanizing side as well.

Posted on September 27, 2015, in Marketing, Technology, Workplace and tagged , . Bookmark the permalink. 2 Comments.

  1. This is a well written and insightful post. Thank you.

    In my opinion, it is high time unfair trade practices become criminal and companies who engage or allow their supplies to engage in such practices should be unilaterally boycotted.
    Okay, okay, I’m calmer now.

    In addition to your post, I’ve recently ran across various news sources and had several conversations regarding the plight of workers—and not just abroad. It seems the wealthy elite are becoming so on the backs of those who do for a living. It’s been nothing short of disturbing.

    One way we can fight back is to not allow our profession to become a commodity. By that I mean freelancers and contractors should be insisting on fair pay for their skilled work.

  2. Thanks Aaron.

    Unfortunately while many consumers may want more ethical, sustainable sourced products, many are unwilling to pay for them. I think more stringent regulations for the companies who produce these products could help alleviate this issue.

    In other words, instead of the consumers taking on the extra cost, it should be up to the company to do so.

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