There are many other benefits that the US can reap from reap from outsourcing to Bangladesh such as tax benefits, full government support, and the mutualism of Bangladesh’s’ Democratic government. Some may ask how Bangladesh is able to provide such a great service to America. This country has made tremendous growth within its IT education sector. The BIBC brings out that with English becoming a primary language in Bangladesh’s colleges; over 5,000 IT graduates from about 38 colleges are able to find employment within IT markets. Those 5,000 graduates are expecting to double in number by the end of 2006.
In addition, there are another 30,000 graduates in other majors are training in the IT field. With this rise in education, Bangladesh is continually rising from a poverty-stricken country into a productive nation. The result of this educational boom is that many small businesses are being introduced into the competitive sector of the IT market. On such company to take advantage of outsourcing is InVision, “an innovative software development and web designer specializing in providing high quality outsourcing services. ” InVision has been working with the latest advancements in .
Net and JAVA programming, and then forming alliances with American companies (www. InVision. com,2005). Although InVision is a company of only 12 employees, they are able to stay competitive by not having tremendous overhead and the ability to work in a fast pace and ever changing environment. Their small number of employees also provides a one-on-one approach to IT solutions, which in turn gives there clients a little peace of mind when dealing with an overseas company. With so many economic maneuvers taking place in the world today, what can become of the future of outsourcing and offshoring?
Within the American economy, the future of outsourcing proves to be expanding at a rapid pace. According to the United Nations Conference on Trade and Developments’ (UNCTAD) report on outsourcing opportunities in developing countries, the market for outsourcing services will reach a projected value range of $300 to $585 billion in the next few years. With almost 50% of Fortune 500 companies involved in outsourcing, there will be plenty expansion in to untapped markets such as Romania, the Philippines, Viet Nam, and various other developing nations.
With such a large global expansion, it is clear that outsourcing is here to stay (UNCTAD report, 2003). With an almost 4% increase in American’s achieving higher education, most of the outdated low-level jobs that are outsourced are making room for higher paying and more rewarding career driven positions for individuals. In the chart below, we can see how unemployment rate is steadily declining amidst the rapid growth of outsourcing. Note. Graph is from a 2005 study from the Economic Intelligence Unit, EIU Database, 2005
This growth can attest the fact that outsourcing and offshoring actually do create more jobs and thus are strengthening economies. The future of the world rests upon the decisions made in today’s society. In order to achieve global economic stability many countries must open up there doors to the free enterprise system. Gradually, over time many impoverished third world countries will move on from agricultural societies, and develop themselves in to industrialized and service oriented economic powers. Although some jobs may be lost now in the U. S. , many new and advanced, jobs are available.
It is important to realize that the future of other nations is at stake, while the U. S. continues to rule as the number-one superpower in the world. We must never give up the fight for economic stability and continue to open the doors of success to all nations.
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