Tax Service Jobs
September 19th, 2009
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There are some common myths that are related to business process outsourcing. Some of the myths are completely untrue and have no direct effect on a nation’s economy. Read this article to know more about common BPO myths.
There are number of myths that are related to business process outsourcing. As the BPO firms have mushroomed across the globe a number of myths have been associated with it. In order to get the maximum benefits from BPO’s these myths have to be dispelled. Given below is the list of popular outsourcing myths
1. Americans are becoming unemployed: The fact is that more Americans are getting employed than ever before. According to the household survey of Americans there are about 1.9 million more Americans that are employed since the recession has started to cease. Today there are more than 138.3 million workers in the U.S economy. Therefore this myth is completely untrue.
2. Business process outsourcing excludes many discouraged workers: The fact is that, unemployment is reducing despite a surging workforce. The unemployment rate has been low at 5.6 percent and the workforce is growing. Now there are 2.03 million more people in the labor force. Therefore there has been no evidence of growing discouragement in a work place.
3. The growing number of call centers will lead to job losses: This is one of the common myth associated with outsourcing, in fact it has little impact and represents less than 1% of gross turn over. Over the past decade, the people in United States have lost an average of 7.71 million of job every quarter. This is one of the most alarming situations of jobs lost. This estimates that 3.3 million BPO jobs will be outsourced between the year 2000 and 2015. This means that only 0.71 percent of all jobs lost per quarter.
4. BPO jobs have led to economic freedom: This has led to free trade, free labor and free capital. This is necessary for new jobs and higher standards of living. The countries that adopt policies antithetical to outsourcing freedom and try to protect jobs from being outsourced tend to retard economic growth. This in return leads to fewer jobs.
5. Any job outsourced leads to a job lost: This is completely untrue as outsourcing means efficiency. It means getting better final output with lower cost inputs. This in return leads to lower price for all US firms and families. Lower prices directly leads to higher standards of living and more jobs in growing economy.
6. BPO is one-way street: In fact it works both ways. The number of jobs coming from other countries to US is increasing at faster rate than the jobs lost overseas. According to Organization for International Investment the number of manufacturing jobs insourced are higher than those outsourced by 82 percent. The insourced jobs were higher paying than those outsourced.
7. The manufacturing jobs in US are moving to poor nations: US alone is not losing its manufacturing jobs but even countries like China too. China has sharper decline and has lost 15 percent of its industrial jobs.
8. Only large companies benefit from outsourcing: This is not right all companies whether big or small benefit from outsourcing. As the cost decline every consumer benefits from outsourcing
9. US government should ban companies that outsource jobs: History says that protectionism is isolationism and leads to failure. The proposal to punish business houses that outsource jobs, change in tax rules, and introduction of high tariffs will lead to unintended consequences. Such measures would injure US firms that export goods and services and erode the growth of US economy.
10. BPO’s just make and receive calls: This is not true because a call center has different motive altogether. It is set with a purpose to provide customer service which in return helps a company to gain maximum profits.
These are some of the common BPO myths. Due to economic meltdown the negative impact of business process outsourcing has already been exaggerated. Therefore the benefits of outsourcing have to be brought in the front line.
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Wash. Gov. Gregoire wants to create 40,000 jobs
Democratic Gov. Chris Gregoire wants to combat Washington state’s high unemployment rate by drawing new businesses and creating up to 40,000 new jobs this year.
1,000 Customer Service Jobs May Come to Greenville County
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