“Outsourcing,” “offshoring,” and “globalization”: All are terms used to describe moving work to regions of the world where labor and operational costs are cheaper. I've talked to business leaders and IT professionals all over the world and I know this topic stirs great emotions. People in first world areas like North America and the European Union are fearful of losing their jobs. People in developing nations like India, China and Thailand are excited about the new opportunities within their own countries. There's no doubt that this global shifting of work impacts us all.
Recently I was talking to one of our HP employees in India. He was sensitive to the fact that Western jobs had been lost as the work moved to India. He gave a perspective on this "work shift" that I want to share with you:
The way we see it, workers in the western world have always been very innovative. As workers in India take on some of the data analysis and other services, it frees up our western counterparts to focus on advancing technology even further. At the same time, workers in India have a bigger role in the world economy. We all win if we work together.
I think he is incredibly insightful. Rather than taking an "us" versus "them" mentality, he articulated a scenario that is a win for all involved. I'm very gratified that the people of India and China are taking advantage of the opportunities to raise their quality of life. That’s good for all of us.
But this brings me to the point I want to make. Despite the increasing offshoring trend, many executives believe it is only a short term cost-cutting strategy. Eventually the cost of doing business in an offshore hub will increase to where the difference is no longer significant. In the competitive world labor market, the advantage will go to those countries with the highest productivity – those with the workers who can produce the most per dollar of cost. We have all heard the imperative, “Do more with less!”
Therefore, a more sustainable strategy for reducing costs is to increase productivity. The key is to take out elements of the work -- and this means automation. If we automate many of the repetitive tasks, we can permanently remove the cost of doing the work, rather than simply lowering the cost temporarily by shifting it from one country to another. This in turn frees up the professional worker to concentrate on areas with higher business value – in other words, more innovative work. This is the key concept behind technologies like the Adaptive Enterprise.
But it also means new skills. IT skills to apply new automation techniques and skills to drive the rate of innovation higher. That’s why I believe so strongly in training and certification. The HP Certified Professional Program is focused on driving the skill sets to increase IT automation and innovation which can help people reach higher levels of proficiency and productivity. It's good for the individuals. It's good for their employers. And it's good for this increasingly connected world of ours.
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