Has exporting employment been Ireland’s downfall?
By: Daniel O'Carroll | Published Tuesday, October 26, 2010, 5:30 AM | Updated Friday, September 9, 2011, 9:53 PM
It's hard or impossible to make the following point without sounding like a xenophobe, angry young man, or just a plain ol' racist, but Irish companies' off-shoring of jobs to countries with cheaper wage bases like
India was and isn't good for the country's economic future.
I've been thinking about this point over the last few days as I've been speaking to various Irish cellphone providers for support switching networks, and most of the voices speaking back to me have been calling from places like
Pakistan and India.
I'm all for integration, multi-culturalism and a mixed multitude of people in
Ireland, and these things can only be for the good of the country, but I think we have to ask ourselves the question whether it was necessary or good to move as many jobs overseas as we eventually did?
For companies, the dilemma is a pressing one. The combined effects of the Celtic Tiger and robust minimum wage legislation together led to what many Irish companies and overseas firms would see as unsustainably and unrealistically high wage levels, which in turn would hamper the bottom line. As a result, the companies moved their jobs to places like India where they could hire workers for less.
We have the Cork Jazz Festival going on in
Cork at the moment, and it's wonderful to see the city awash with the sounds and sights of foreign accents. Less transiently, you'd be hard-pressed to argue that the influx of foreigners to Ireland has been without its benefits, and easier-pressed to say that it's been for the benefit of a country. Yet multi-culturalism shouldn't mean an abandonment of patriotism and I think we should do our best, particularly during the current recession, to hire our own workers if that's at all possible.
Allied Irish Banks, although hardly the Irish taxpayer's best friend at the moment, at least has its call centre based somewhere in Ireland. Yet try dialing up a hotline for support when your Blackberry, mobile internet, or something else technical has gone bust, and you'll have your call routed to somewhere in India.
7 Comments
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Switch to the desktop site to post a comment.plasticpaddy | Oct 28, 2010, 06:14 PM EDT
possibly George becasue he is not what you are a racist and a xenophobe
DennisQ | Oct 28, 2010, 01:01 AM EDT
If you've never heard of corporate social responsibility, George, it indicates how much work still faces its supporters. You did not address the damage that corporations have done to places like Ireland. Isn't there a third alternative to profit maximizing or socially responsible behavior?
That was the point of directing you to the Aspen Institute, which by the way is not some liberal think tank. If you're up on globalization issues, it's really surprising that you never even heard of them.
GeorgeDillon | Oct 27, 2010, 08:34 AM EDT
DennisQ: I have never heard of the Aspen institute and have no interest in their seminars. I do, however, find it contemptibly indicative of the state of public debate in Ireland that this young man thinks he needs to assure readers that he's not a racist before he can offer his opinions on globalization.
DennisQ | Oct 27, 2010, 03:26 AM EDT
It's very patronizing to dismiss Daniel O'Carroll as a "crazy, mixed-up kid," George. He's struggling with an emerging issue, namely the duties of corporations to the environments that nurture them. This topic is the focus of seminars hosted by the Aspen Institute concerning corporate "success."
We've been told for years that corporations have no responsibilities other than maximizing shareholder value. Is that still true? Ireland is an example of the devastation corporations leave in their wake. You might want to look at Aspen Institute's website or perhaps even attend one of their seminars.
This is an excerpt from Walter Isaacson's statement of the group's purpose:
Aspen's seminars, programs and leadership initiatives offer a chance for restorative reflection on the meaning of the good life, leadership, and sound public policy based on nonpartisan principles and timeless ideas. The endeavor is particularly relevant today. We have passed through a period in the 1990s when we saw the consequences, in both the business and political arenas, of becoming unhinged from underlying values. We face a world in which the biggest threat, to nations and to communities, is a lack of tolerance and understanding.
Our core mission is to foster enlightened leadership and open-minded dialogue. Through seminars, policy programs, conferences and leadership development initiatives, the Institute and its international partners seek to promote nonpartisan inquiry and an appreciation for timeless values.
GeorgeDillon | Oct 27, 2010, 02:41 AM EDT
This writer is a crazy mixed-up kid. What is he complaining about, businesses relocating to India, or Mass Immigration into Ireland? And why the stupid apology at the beginning--why the hell would he think it "racist" or 'xenophobic" to discuss these issues? Are all the Irish now turned into sheep who can barely say Baaaa? Have some backbone, you slimy sponges!
Ajreaper | Oct 26, 2010, 03:31 PM EDT
So the government should decide where a cell phone company, for example, has their support centers? You cannot have a free enterprise system AND micromanage at the same time.
justchris1 | Oct 26, 2010, 06:12 AM EDT
When you outsource jobs to other countries this is exactly what happens !!! Its because of stupid politicians and greedy business owners that Ireland and the US are now in this economic downfall!!!