Outsourcing at irrational scale to serve greedy or desperate employers and investors -- emptying local employment, middle class hardest hit

It has been a rough ride for middle class Australians in the last couple of years.  I'm not even talking about ever rising prices of electricity, food, housing, transport, medical, insurance and other basic necessities. It is more challenging to hold a job with decent income to support your family for those with more responsibilities than self sustenance.

No longer does a good education and specialized skill guarantee you job security till pass middle age.

Starting with manufacturing, we thought that higher value added jobs could be retained locally. Not any more. IT (information technology), accounting services, and now legal services can be outsourced on a massive scale. Employers have no qualms about taking the sledge hammer to export jobs, with little consideration to coordination, sensitivity of information and understanding of local environment.

Labour intensive  -- Low cost component -- Assembly / Semi-skilled processes -- Design -- Innovation

Every industry and sector has no qualms and almost ridiculously competing to outsource each other -  textile/garment, light industry, banks, construction, telco, airlines, financial services, etc.  Eventually, when labour of developing nations become more highly educated, skilled and creative, which they will catch up with us sooner than later, even designing and innovative jobs can be shipped overseas.  Only few food and personal services and care could not be outsourced.

Just because everyone is doing it does not make it alright.

Despite the political soundbites in favour of protecting local jobs, there is little the federal or state government could do to interfere with private business decisions.

http://www.change.org/en-AU/petitions/prime-minister-julia-gillard-stop-outsourcing-australian-jobs-2

Hypocritically, even local governments contemplate outsourcing jobs.

http://www.brisbanetimes.com.au/it-pro/government-it/councils-job-outsourcing-plans-breach-eba-union-20130107-2ccy0.html

On the surface, it makes good economic sense, from the employers' point of view. Capitalist economic theories teach us to the benefits of division of labour and comparative advantage. It's good for business by lowering to cost, doing what we are best at, and maximisig profits. Welcome to the real world of globalisation and competition. It does not take into consideration social stability and compromise quality of services.

No matter how hard you have worked, giving up your health and best part of your life and time, and no matter how good you may be at your job, and contributed to your company's growth and profits, employers can be ruthless and have skilled efficient workers who do not fit into their short term purely cost (not even profit) driven gameplan to cut jobs. The air of distrust and low morale pervades many workplaces of today. It is no wonder more people are falling sick, especially work anxiety.

If jobs can be neatly compartmentalized, could be performed efficiently and cheaply by skilled workers in India, China, Indonesia and Vietnam. We have nothing against individual workers overseas as they too need to make a living and probably work under less enviable terms and conditions.

The real culprits who should be made to answer the questions are the heartless creatures who decide on making every opportunity to outsource, regardless of its suitability. Mindless restructuring and outsourcing has created a vacuum. A small percentage of former staff laid off by companies have been re-employed as contract staff at higher salaries to fill the gaps that foreign labour are unable to accomplish. There you have a dumb decision immediately exposed. There will come a time, and it should be sooner, that senior management could be outsourced too, for making silly mistakes.

Adjustments are invariably difficult and take a long time to achieve positive results, if they in fact do so.  Our education reforms have met with funding shortage and strong resistance from educationists, parents and politicians. We would be hard pressed to develop relevant skills to keep jobs locally.

Depreciation of the unrealistically high Aussie dollar is inevitable. Australian goods and services have become uncompetitive. Life has been good to us in the recent past thanks to the mining boom. Australian travellers have been able to stretch the value of their dollar and enjoy during good times.

However, with the slowdown in exports, rising unemployment, high living costs and mortgage (despite rate decrease) becomes more painful.

To be employed and have a gainful employment for a large part of our lives is a basic human right. It is useless to talk about esoteric theories and ideals when we can't even carry on with decency and dignity.

This is going to be a cold, harsh and long winter.

Education too slow in responding to globalisation? Australia joins developed world in escalating outsourcing skilled labour overseas - retrenchments and net job creation

There is always a silver lining to negative news provided we vigorously address problems and plan for the future. 


Get used to it: sending jobs overseas is the way of the future
http://www.theage.com.au/national/get-used-to-it-sending-jobs-overseas-is-the-way-of-the-future-20121009-27bfh.html


Outsourcing has become a dirty word, threatening to cut more jobs of locals as companies seek lower cost of labour and production overseas. Rather than resisting and putting up artificial blocks, which won't work  anyway, we should go with the flow. Trade restrictions and doing nothing would only weigh us down and put us further behind the competitors.  

Having said the hard truth, outsourcing has gained a momentum of its own. The question is how to ride the storm and survive, if not thrive well. It is a challenge for the state to set the right direction and actually putting money where its mouth is and getting things done. Or else we are doomed. But looking at the way education and health budget is being slashed, procrastination and bickering over unimportant issues, the picture is more gloom than most politicians would like to believe. 

Retrenchments have splashed ruthlessly across corporate human resources lately and putting stress not only to those made redundant and their families, but co-workers who are fortunate enough not to be laid off, but left to do the extra jobs of the less fortunate who have been made redundant. The cull and more to come has left deep psychological scars on everyone and 

The well-connected and those armed with current, relevant and highly sought after skills have nothing to fear. Most are able to get another position in a related field or industry, often in the ex-employer's competitor firm. 

However, as the high performing developing countries with huge economies such as India and China move up the skills and value added ladder, the number and spectrum of jobs they are capable of performing as well as Australians increase as well. 

Quote : Occupations most at risk include those in information technology, administration, and jobs in finance and insurance and the professional, scientific and technical services sectors.

Indeed, I was taken aback when I realised that some IT and accounting staff processing our requests and orders are based overseas, contactable only by email (which they normally respond within minutes barring time zone difference), and whom we would unlikely to ever meet face-to-face. So it won't be surprising that even scientific trials that require long hours including weekend work, can be moved offshore. 

The bottomline for most companies is to get the job accomplished at the least possible cost. The issue is that Australian labour is getting too expensive (to catch up with rising cost of living and aspirations) taking into account extra hours and weekend penalty rates, leave allowance, labour protection laws, workers' compensation and taxes, and a long list of regulatory compliance requirements, which are still unheard of or de-emphasised in most developing countries. 

So, where does that leave the majority of the redundant workers? professional nursing or basic home carer for the old age and autistic kids. However, for a middle-ager making a career switch to a highly demanding (both physical strength and mental alertness), it is less than ideal for both the worker and the client.  

The young and fit would be better off become skilled tradesmen who are in perpetually short in supply and could pick and choose the type of work to do and when to turn up. This sounds familiar to most households who need small jobs done. Such jobs are difficult to outsource and safe as long as most Australians remain not so handy and technically incompetent. 

Australia's education score for high school and universities ranking remain dismally poor compared to US, UK and now Asian schools. Those who complain about competitiveness in local education system should take a look at the level of proficiency that counterparts offshore have attained in Math, Science and languages. The local curriculum is slow in adapting well to current needs and keep up with the fast-changing world. The skills gap can only get more skewed. Concerned more with niceties and political correctness instead of facing up to difficult tasks, majority of our school leavers and graduates can only hope to rest their laurels in gaining local recognition.

NewStart and financial assistance for business start-ups are costly and merely serve as a bridging measure to help Australian families. Most distressing is the recent cut in funding for TAFE courses deemed less essential and important. Inevitably, more will fall beneath the cracks and modern day borderline poverty may worsen. This may just be the beginning of a downward spiral. 

http://www.brisbanetimes.com.au/opinion/political-news/single-parents-fear-newstart-will-set-them-back-20121009-27bas.html

http://www.theage.com.au/victoria/tafe-cuts-advice-to-be-kept-secret-20120922-26dud.html

We need more than temporary stop-gaps which will stave off discontent and political inconveniences. But for a nation to remain economically viable in the long run requires better economic planning and proactive education policies. 

Afterthought : I have since written an update of the pain outsourcing threatens to affect each and everyone of us. 

http://ausletters.blogspot.com.au/2013/05/outsourcing-at-irrational-scale-to.html

Walking Away from Masterchef glamour, a reality of life

MasterChef contestant quitter Adam Bowen is being very human and courageous for expressing his disappointment frankly. Been there, didn't like it, and walk away. How cool!

http://news.ninemsn.com.au/entertainment/8263729/masterchef-producers-dont-care-enough

For those who did not expect the pressure of reality show, welcome to the brave screen world of Masterchef. After running for several seasons and years now, there are really no surprises that contestants would break down and display their emotions publicly. To be fair, the judges are a lot more tactful and courteous than before.

Connecting this episode with my encounter with dilemmas, I realise it is difficult for others including friends and family to understand why we make certain decisions that do not seem to be the most sensible and optimal choice. Only we really know what is best and could convince ourselves to love and excel in what we choose.