Import Services for Fast Corp Growth
You have more than likely heard it before : “Services – the export of the 21st century.”
There are predictions by some global economists that the use of import services, in labor markets may have negative effects on the service industry.
The import service industries are those industries that provide transportation, communication, financing, insurance, and the support that is essential to world trade.
Since the service sector primarily creates, processes, and distributes information, it’s importance grows as a country becomes more developed. The richer a country becomes, the greater the percentage of employment that occurs in this area.
With the fast growth of import services, some economists think that the service sector may soon overtake the manufacturing sector of certain countries.
The ability to deliver services over the internet has meant that traditional constraints on growth have virtually been removed. The need for physical proximity to a companies head office is no longer needed.
So what are the impacts of the expansion of global services:
# The development of technology and innovations to support this industry have expanded rapidly. Including the digitization of business processes, the spread of computer literacy, the improvement in broadband internet access and so on.
# We now have access to low cost labor which means cheaper products and greater savings for the consumer. If we import services from abroad by outsourcing to overseas, we can also remove some of the complexities and expenses associated with things like workers compensation, holiday pay, sick pay and maternity leave. If we import services, we will also have more time to focus on core competencies such as product development and marketing.
# It allows some countries to develop this sector as a core competency. For example developing countries like India are working to grow their service sectors more aggressively than their manufacturing sector. We have all witnessed India’s rapid growth in this sector especially in IT services.
# It has created a global business culture that means there is a language convergence. English is rapidly becoming the global language of business which means there is a greater dissemination of western management principles.
# There is a greater liberalization of trade barriers which is lowering the costs of transactions and further increasing trade volumes which means more countries are able to engage in international trade and investment than ever before.
Choices in Import Services
The reasons why many business owners choose to import services is not well accepted by some corporate managers. In fact, the issues associated with the practice of developing import services are often hotly debated and discussed.
Many people are outraged by the outsourcing that is occurring because it takes away jobs for hard working people in the domestic market. Instead the service jobs are going overseas to those willing to work for a lower wage.
True, most of us have heard stories about large businesses moving call centers and basic business processes like, software development, payroll and billing to other countries. On a basic level, most of us understand the compelling reasons that lie behind these decisions.
To the customer phoning in to clarify or argue about an entry on his or her monthly credit card statement, it doesn’t matter whether the contact center agent is sitting in Bangalore or in New York. If it’s cheaper to hire that agent overseas and they can still get the job done in a satisfactory way then that service job is very likely to move offshore.
Even if it does come at the expense of a potential job for someone in that country.
The idea of import services is hotly debated, and yet we all understand the reasons why companies should in fact continue to do it, after all, it keeps prices down and business profits up and in the end that is always going to be good for the consumer.
If you enjoyed reading about Import Services for Fast Corp Growth then see our next article about Import to USA.
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