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Importance of job creation

Well here comes the refutation that outsourcing (any kinds of) jobs could be detrimental to a country. Popular wisdom has it that it is good for the US to outsource lowly jobs to Asian countries and keep only high-end jobs for themselves. But Andy Grove (ex-CEO, Intel) thinks otherwise – in his article – How to Make an American Job Before It’s Too Late he makes some very important points including that as US is outsourcing more and more jobs, they are also losing their hold on emerging technologies.

Based on this article, this sure looks to me that jobs in manufacturing are better than jobs in services industry (not for the employee as such, but for the country). Mainly because, when you setup a plant, and that gives you leverage in future on the emerging technologies. And where does that leave India? Sure we have jobs today, because we can find countries and companies who are ready to outsource, but what if, in future, the tendency to outsource reduces drastically? Also, it hasn’t given India any edge in producing new software products unlike it has given an edge to other manufacturing countries, notably China.

And using services from other countries can be reduced, but it is harder to restart manufacturing – so China is the big boss. And Indian companies must learn to create jobs in something else than the venerable services sector.

Categories: Business, General
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