Outsourcing in Japan

Outsourcing is the process by which you send business overseas. In many major economic countries today outsourcing is a major way to increase revenue. In Japan outsourcing is a major part of the economy. 

Outsourcing is providing jobs for many Japanese people, but is it really helping the country as a whole?

Just like the U.S., Japan is taking any possible route to get its way out of the current economic recession that began in 2008. In order to improve the market and improve unemployment in Japan, many Japanese companies throughout China and Southeast Asia are hiring Japanese employees instead of foreigners. To some this may seem unfair to deny others the right to work based on race, however they are doing so to improve the nations economy so it is their decision. If American companies around the world did the same thing, would we have others have the authority to question us?

There are many Japanese workers going to foreign countries to work in Japanese companies. Businesses such as Transcosmos and Masterpiece are two major outsourcing Japanese companies. In 2008 alone "There was a netflow of 100,00 Japanese" to foreign countries to work in Japanese companies (New York Times). That is a significant number of people who gained jobs just because of the new opportunities provided by outsourcing from Japan. However there is much inequality as a result of outsourcing because Japanese workers who are working at these companies in other countries are being paid significantly lower, than if they worked in Japan. It seems really unfair that they can pay workers less just because of the location of where they work. I guess its better to have a job and get paid, rather than make nothing at all. 

The Japanese are using outsourcing to benefit the economy as a whole in order to bring in more money. It has many positives though and is being used as "an effective way to enhance efficiency"(NLI Research Institute). Japanese companies believe that by bringing in Japanese workers, that they can not only increase the efficiency of the work done by companies, but also to fit the needs of the customers. The offshoring of many Japanese companies made it so there is a lack in cultural sensitivity towards Japanese customers from foreign workers. By using Japanese workers, these companies get rid of the cultural boundaries and make it easier for business between companies, more specifically those in Japan. Japanese workers are seen as more desirable because they understand Japanese customs and manners better than foreigners, so they know how to speak better to Japanese customers and improve the overall quality of business in each company.

Offshoring does create a cultural barrier between Japanese customs and those of foreign countries, however the Japanese are using outsourcing to their advantage. By using Japanese workers Japanese companies are increasing efficiency and relationships with customers. The only downside is the smaller wages of Japanese workers who are being outsourced, but in today's recession, maybe it is a lifesaver to those who really need a job?

Sources: 

•  Tanikawa, Miki. "Many in Japan Are Outsourcing Themselves." New York Times. N.p., 21 July 2010. Web.
• "The Prospects for Strategic Outsourcing in Japan." The Prospects for Strategic Outsourcing in Japan. N.p., n.d. Web. 27 Mar. 2014.