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