Thank you for your question. I want to make sure I understand your question fully. Are you asking about the impact on the Asian workforce or the Western workforce?

Here are some things to consider for any company who is outsourcing services, whether it be traditional customer service or IT support.

Every outsourcing decision is unique. Whether it be a cost issue or timezone requirement, giving up the customer interface can become a slippery slope. It looks good on paper and it looks great when you get started, but without extensive continuous management and training, it is difficult to control.

The companies that outsource services, whether they be in Asia or in lower cost Eastern European zones, have very favorable setups. They establish groups of employees that mimic the western companies they represent. They decorate their areas, dress as employee representatives and utilize the computer interface from the represented western company. They also spend a great deal of time on establishing training programs along with their western counterpart. It is very appealing and gives the western business partner a feeling of comfort.

Problems occur when change occurs. There is a high turnover rate in the service centers, there are also continuous changes that occur within the western company's product and service portfolio. It is difficult to maintain quality of service levels, and by the time the western partner figures this out, it may be too late. In order to avoid this slippery slope, the western company must stay fully engaged, at all times facilitating and managing the service.

Regarding outsourcing human capital and its negative impact on the host nation. There is a balance that takes place as individuals learn. Although the Asian workforce has technical skills, they are learning from western countries how to apply them in different parts of the world. Without that sharing of knowledge and training that takes place with partnership engagements, the workforce is limited. That old saying "Knowledge is Power" holds true in this case. Holding onto knowledge does not give you power, learning new ways of applying knowledge and continuously developing skills, does give you an advantage.

The reality is that skilled manpower will gravitate toward the best opportunity. If that opportunity exists within the nation's portfolio, it will be utilized there. Many western companies have moved their outsourced services back to their own countries for that very reason.