Ben Verwaayen: It is morally wrong to stop jobs being outsourced
From a speech by the chief executive of BT to the CBI annual conference in Birmingham
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Throughout the 20th century, knowledge developed within specialities or within geographic localities (Silicon Valley for example), where the depth of expertise in any field was the basis for furthering it. In the 21st century, the biggest breakthroughs are coming from two new linkages, first, between areas of expertise, but second, between widely differing regions.
It opens tremendous opportunities for hundreds of millions of people, who so far have been left out. It is the basis of the outsourcing phenomenon.
Outsourcing is far more than just call centres - in fact the focus on call centres trivialises the debate. Outsourcing is any kind of working with information in a place where it can be done more advantageously than at the source of the information.
It is unstoppable, where services are coming across networks. And it should be morally unstoppable as well, since it's opening trade opportunities to economies which so far have been excluded, helping millions of people aspire to a better standard of life. It means that aid is starting to change into trade
And it is way too simple to say this is all based on low wages. If that was the case it wouldn't be economies like India and China leading the charge, it would be Malawi and Haiti.
We had better have a rethink of the value of knowledge and education, accelerate the drive for innovation, and ensure we have an investment regime that facilitates the infrastructure for best-in-class centres of excellence in terms of facilities and people, and then have them linked with the rest of the world.
For business people and ouremployees, this is good news, if we open our eyes and don't shut our borders. The world will grow as a marketplace through all these developments. The pie will become larger. But that doesn't mean we can automatically count on our share of it.
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