Wednesday, February 27, 2013

Outsourcing and Offshoring in Japan


        Several countries, most predominantly the US, have developed outsourcing and offshoring economy to the point where there is exponentially increased pressure on foreign countries to cut costs by adopting similar outsourcing/offshoring policies, in order to compete fairly in the world economy. Japan is powerful example of this trend. However, Japan has taken to outsourcing white collar jobs,  in contrast to the US where the jobs outsourced are principally blue collar jobs. Regardless of the particular skill levels of the jobs being outsourced, Japan has faced some significant cultural backlash in attempting to adopt an American system, and therefore the development has happened slowly and indirectly. Due to the meticulous nature of Japanese culture, outsourcing jobs completely to the citizens of other countries is not really an option. Instead, Japanese companies are moving Japanese workers to outposts in other Asian countries like Bangkok, Hong Kong, Jakarta, New Delhi, Shanghai and Singapore (Tanikawa) because it is cheaper to conduct business in those places.
        Culture is a huge barrier to the Japanese in their journey towards hardcore outsourcing and offshoring; since Japan has traditionally been a “land of lifetime employment, outsourcing conjures up an image of job-cutting, which is still in many ways taboo” (Strom). It seems almost like America finds it so easy to outsource because we don’t experience the dedication to loyalty and lifelong service that the Japanese do, and do not have a specific business culture to preserve. Or it may be that our culture simply does not posses the same multitude of nuances; Kazuyuki Ichikawa, an employee for a company that deals with outsourcing Japanaese workers, describes the general importance of these Japanese nuances, saying; “You say one thing and Japanese employees will understand three things... In Western cultures, you might be straightforward with what you want your staff to know, but a Japanese manager would want you to understand it without having to say it” (Tanikawa). Yet, despite this, Japan continues to experience pressure to outsource—something that will drastically alter the composition of the Japanese business culture—even if done in a style that “allows everyone to save face and is not as harsh as outsourcing U.S. style” (Strom).
      The pressure is especially acute in light of the devastating earthquake Japan recently experienced, destroying many factories and businesses, the owners of which see recovery in a the disabled Japanese economy as nearly impossible. Trade Reform reported that “In a recent survey [circa 2011] sent to domestic manufacturing companies, METI [Japanese Ministry of Economy, Trade, and Industry] found that almost 70 percent of responding firms indicated the possibility of “accelerating” relocation of manufacturing and supply chain operations in full or in part, due to the earthquake and tsunami” (Stumo). These shocking statistics were not taken lightly; the Japanese government responded with many programs working to rebuild factories and businesses to prevent a wave of outsourcing. It continues to become evident that “the Japanese Government sees outsourcing as a long-term problem that will require government attention and financial support for years to come” (Stumo), and we can only wonder if the combination of cultural and governmental resistance will be able to stop the infectious force that is outsourcing from taking over Japan’s economy.

                                                                          Works Cited
Murphy, Marian. "Outsourcing Japan - OECD Observer." Outsourcing Japan - OECD Observer. OECD, Dec. 1999. Web. 01 Mar. 2013.

Strom, Stephanie. "THE BUSINESS WORLD; In Japan: Outsourcing Without A Capital 'O'" The New York Times. The New York Times, 16 July 2000. Web. 27 Mar. 2013.

Stumo, Michael. "Japan's Offshoring Problem -- Post Earthquake-- Trade Reform." TradeReform.org. Trade Reform, 08 Aug. 2008. Web. 27 Feb. 2013.

Tanikawa, Miki. "Many in Japan Are Outsourcing Themselves."  NYTimes.com. New York Times, 21 July 2010. Web. 27 Feb. 2013.


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