Off-shoring Jobs - Productivity

I found an article from www.smh.com.au, created by Chris Zappone, with the title 'Service sector crunched as jobs go overseas'. First thing in mind seeing this, less jobs opportunity. However, if we look more closely on the reasons why employers prefer to move overseas, it is actually quite plausible.

www.businesspundit.com

Cheaper
This is the most ultimate reason why companies prefer to offshore their jobs. For example, if you are using Vodafone in Australia as your phone operator, when you have problems and call the customer service, then you will be connected with someone in India. The implication for customers is that it is probably harder to speak and listen to Indians rather than with Australian. However, from company's perspectives  off shoring to India, will off course make it cheaper. Just imagine the salary in India will be measured using monthly basis while in Australia, it is hourly basis. There is a big difference there.

Implication to us
It might cause the dampening of customer service in Australia. Sometimes they don't understand us, and we don't understand them. Implication for business? Probably, even though it is cheaper, it will be very hard to adapt to rapid changing business environment nowadays. Imagine if you have to make a business decision and you have to contact someone from India.... well..

Also, less job for us!!! We have seen a lot of cases of banks cutting off their staff and outsourcing it to other developing countries. The more extreme case, Gina Rinehart imported those international staff to Australia! Ethical or not? Just judge it yourself.

However, it comes to the basic of why people want to shift their workforce, it is basically competition of productivity comparing to the price of workers. To make it more understandable, say A is paid for $5 per hour and you are paid $10 per hour. If you can produce twice or more works than A, then the employers will not have any reason not to hire you. So for us, even though we know that there is less job opportunities out there, if we can exploit our strengths and be diligent enough to find the job, hopefully we still can get it. Like in my microeconomic subject of my first year says, it is not the salary, but the productivity.