Companies with outsource support from India, China nervous after Trump’s take over


WASHINGTON, Jan 23 (APP): Companies that have outsourced IT
operations and production in countries like India, China and Philippines are worried to come under the scrutiny of the new President Donald Trump who has severely criticized those operating from outside American borders.
According to a report by Wall Street Journal, executives of such companies are expressing worries in private conversations over the future prospects under the Trump administration which is expected to come hard on companies which have outsourced jobs.
Mr. Trump, during his election campaign and after his victory, has made
it clear that securing American jobs is among his top most priority and that those who are operating outside American and exporting goods and services back home may face higher tariffs.
According to the report, some of these companies have already started
looking for US-based alternatives. The report quoted Frank Casale, chairman emeritus of the Outsourcing Institute and co-founder of a professional association called the Institute for Robotic Process Automation, as saying that every single Fortune 500 company has
something outsourced and off -shored.”
Those companies, such as manufacturers Carrier, get more attention as
their decisions to move out operations affect middle- and working class workers. Those with less-visible operations, including transaction processing, data entry and accounting, have a big chunk of share of the offshoring market.
“Firms like Infosys, Cognizant Technology Solutions Corp. and Wipro
Ltd. employ hundreds of thousands of people who handle IT work for banks, insurance companies, defense contractors and others,” according to the report.
However, due to increasing labor costs overseas, outsourcing and
offshoring have seen declining trends in recent years. Number of jobs that were affected by shifting of operations and manufacturing to overseas has dropped to 100,000 by 2012 from 156,000 American jobs a year in the mid-2000s, the report said.
Most of the companies have already reaped the benefit of outsourcing,
according to David Tapper, vice president of outsourcing and offshoring services at IDC, adding that the use of cloud software and automation have reduced the need of outsourcing.