DEVELOPING AGENDA: Education is the key for future partnerships

One of the current issues in the United States involves the so-called outsourcing of jobs: the transfer of salaried employment from American to foreign locations.

Sunday, July 19, 2009

One of the current issues in the United States involves the so-called outsourcing of jobs: the transfer of salaried employment from American to foreign locations.

As an example, India has become a major player in the outsourcing of certain work.

With globalization now a driving force, especially in the business world, US companies are seeing the benefits of outsourcing labour to workers in foreign countries. India, as one of these countries, has emerged at the forefront of this outsourcing movement.

With labour regulations and the comparatively high minimum wage in the US making American workers expensive, educated Indians have become that preferred choice for many US employers.

The outsourcing to India is significant in many other terms as well. Not only do companies save money on salary, but they are able to improve efficiency as well.

Through expansions that utilize more employees from India, time-zone issues in the customer service industry, English fluency problems, and communication gaps within information technology sectors are problems that no longer exist for many companies that outsource labour.

There is a large young and educated group of English speaking Indians that are emerging as desirable workers for US companies.

Many jobs have been outsourced from the US in the past that focus on call centres and internet support staffed by English speaking Indians who can answer calls at the hours of the day when US businesses are closed.

Due to the fact that India has a 12 hour time difference from the US, much of the online support and calls that were once staffed by high paid night-shift American workers are now answered in India during the normal business hours of the Indian work day.

This has greatly improved satisfaction in the customer service industry in the US.

Consultant firm Deloitte and Touches reported that by the end of 2008, the US finance industry moved over $356 billion worth of work off-shore every year.

It is additionally reported that this increase in outsourcing will produce an approximate 40% cost savings for the industry.

As Rwanda moves full force into the IT and communication industries it will become necessary to examine such existing relationships and capitalize on opportunities that fit the resources that are being built in Rwanda.

As Rwanda’s youth become more proficient in English over the course of the next few years with the full transition to English as the language of educational instruction, new investments will need to be made.

It makes sense to invest in IT as it is a progressing and profitable sector. However, it must be noted that the primary language of IT is English and that countries, particularly the United States, are looking to outsource labour in this sector will need fluent speakers of English.

It will become necessary for youth outside of Kigali to develop a culture of reading, speaking, listening, and business practices in English so that there is not a limited urban concentration in applicable linguistic skills.

It will also be necessary for large numbers of these rural Rwandese students to develop strong and practical technological skills that can be invested in the industry. However, without sufficient IT training resources that focus on centre based learning, there is small likelihood that many of these employment opportunities will open up for rural Rwandese.

Even though primary and secondary schools are making the switch to English and some have computers, many teachers are still not proficient in English and computers are often outdated and lacking internet access due to cost rather than infrastructure.

Furthermore, the necessary knowledge of the expectations within an ever-changing IT sector as they link with English language skills, computer skills, customer service, and training are not met by the trainers or trainees.

The foreseeable roadblocks to developing an effective IT sector could be summarized as a lack of resources.

However, that would be overlooking an overarching issue in development: efficiency vs. effectiveness.

It seems that it would be better to take the time to develop a culture of English language that mirrors the excellence expected in various developing sectors of the economy before expecting significant outside investment in those areas.

Improving educational infrastructure in rural areas will help mitigate the urban to rural economic divide that currently persists.

It will not be easy and will take time as well as larger investments in educational resources, but the overall benefits will be worthwhile and will effectively reach all Rwandans with opportunity.

We can learn something from the US-India labour relationship. With education, a common language with business partners and training centres that extend to all regions, employment opportunities can be extended and economic growth sustained.

This is a possibility for Rwanda.

Email: nickafiore@gmail.com