11 Jun 2022

342

Capital Seeks its Lowest Cost of Debt

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Today, firms in Western markets face challenges that have forced them to implement innovative and cost-saving solutions. Outsourcing is among these solutions. Essentially, outsourcing involves offshoring certain operations to markets where the cost of operations is lower. It is common for Western firms to outsource to Asian markets where lower costs of labor are incurred. The film Outsourced explores the impact that outsourcing has on the operations of the outsourcing companies and the employees in India who are mandated to execute the offshored responsibilities. This film communicates a number of complex themes. For the most part, it shows how outsourcing facilitates the exploitation of employees while allowing for a healthy clash of cultures through capitalist exchanges.

Outsourcing and exploitation 

That workers bear the brunt of outsourcing is one of the messages that the creators of Outsourced must have set out to convey. As the company moves its order fulfilment department to India, it is forced to lay off the American workers in this department (Gorai & Jeffcoat, 2006). The American workers are fired at a time when the job market is harsh. This company displays utter disregard for employee wellbeing. No measures are put in place to cushion the workers against the harsh realities in the job market. One would expect that the Indian workers who replace the American employees would experience a transformation of their lives. This is not the case. These workers suffer similar exploitation. For example, the company offshores the department to India in a bid to cut costs (Gorai & Jeffcoat, 2006). Usually, the low cost of labor in such Asian markets as India is the primary motivation for outsourcing. Therefore, it is fair to conclude that the company moved to India so as to leverage the country’s lax labor laws and offer the Indian workers meager wages.

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The exploitation of the Indian workers goes beyond being offered meager wages. These workers also lack job security. In an effort to further cut costs, the company decides to move their order fulfilment operations to China where the cost of labor is even lower (Gorai & Jeffcoat, 2006). This decision renders the Indian workers unemployed. The firm’s decision to offer the employees only one-month severance pay highlights its complete disregard for employee wellbeing. These workers functioned in less than ideal conditions to deliver the company’s bottom line. For example, even when their premises are flooded, the workers work from the roof (Gorai & Jeffcoat, 2006). Essentially, the workers value their jobs but the company fails to reward their commitment. This company is a representation of a capitalist system that demands profits at the expense of employee wellbeing.

It is important to note that the Indian and American workers who lose their jobs are not the only victims of victimization. The manager, Todd, also endures hardships as he pursues the company’s goals. For example, he is threatened with losing his stock options if he refuses to move to India (Gorai & Jeffcoat, 2006). While in India, he works tirelessly to bring down the minutes per incident (the amount of time that an agent takes to complete a call with a client) to 6 minutes. Despite this milestone, Todd’s efforts are not recognized. Even after turning around the operations in India, Todd faces more threats of being stripped of his stock options should he decline the offer to head the operations in China (Gorai & Jeffcoat, 2006). Todd’s experiences show how companies in capitalist markets exploit employees in the pursuit of profits.

Cross-cultural Experience Impact on View of business 

Cross-cultural interactions tend to leave lasting impacts on the lives of individuals. This is one of the many messages that the Outsourced film communicates. Todd’s view of business is transformed thanks to his interactions with the Indian workers. One of the impacts of the cross-cultural interactions regards cultural sensitivity. Initially, Todd is dismissive of the Indian culture. For example, he describes how the American people brand cows with hot iron (Gorai & Jeffcoat, 2006). This description leaves the Indian workers offended and shocked. Later, Todd becomes an embodiment of cultural sensitivity. He embraces the Indian culture and its people. Todd’s view of business also changes as he understands that successful businesses are built around people. For instance, during his first days, he adopts a harsh and authoritarian management style. However, after gaining a deeper understanding of the Indian culture, he embraces a more human and democratic management style. He implements a number of reforms which lead to a significant improvement in employee performance. For example, he allows the employees to place personal objects at their workstations (Gorai & Jeffcoat, 2006). Furthermore, instead of imposing American values and business practices on the Indian workers, he submits to and fully embraces the Indian culture. Overall, the cross-cultural experiences challenged Todd to recognize that cultural sensitivity is at the heart of successful business.

As he had various encounters with the Indian culture, Todd’s view of himself was transformed. Initially, he was a stern manager who did not entertain behaviors which threatened the call center’s operations. He made it clear that the employees needed to improve their deliverables. However, after various experiences with the Indian people, he adopted a friendlier approach. He participated fully in the Indian way of life and abandoned his reservations and preconceptions. For example, he takes part in the Holi festival (Gorai & Jeffcoat, 2006). This festival offers the Indian people an opportunity to celebrate color. Thanks to this festival, he adopts a more relaxed approach to life. The experiences in India also change his perspectives on family. He was transformed from a man who failed to recognize the value of family to an individual who cherishes his mother (Gorai & Jeffcoat, 2006). Todd’s transformation shows that an encounter with a new culture is what individuals require to gain a new perspective and to fully experience life.

American Capitalism Enlightening View on Capitalism 

The company’s move to offshore its order fulfilment operations to India sheds light on how American capitalism functions in a different culture. One of the insights that one gains as they observe the interaction between American capitalism and the Indian culture is that American capitalism is exploitative. The American capitalist system is mainly concerned about profit maximization. It will exploit workers to ensure that maximum profits are achieved. The Outsourced film also underscores the focus that American capitalism places on material objects at the expense of such real issues as human connections. While in India, Todd is exposed to a culture which cherishes family and religious beliefs (Gorai & Jeffcoat, 2006). The Indian culture contrasts sharply with American capitalism whose primary purpose is to maximize sales and profits. As American capitalism interacts with the Indian culture, it also highlights the glaring inequalities in different countries. While Americans take certain privileges for granted, the Indian people celebrate the small opportunities and positive experiences. For example, when they receive news that they have lost their jobs, the Indian workers seem elated. They are grateful for the work experience that they have gained while working under Todd (Gorai & Jeffcoat, 2006). This experience will enable them to acquire new jobs. In general, the Outsourced film shows how the exploitative American capitalism differs from the Indian culture which places focus on the celebration of life and human connections.

American Presence and Native Culture 

Outsourcing offers the United States an opportunity to gain a presence in other cultures. Through this presence, the US is able to transform the native culture. This is clear from the Outsourced film. Todd serves as a representation of the American presence. His encounters with the Indian people allow him to introduce certain American influences. For example, he trains the Indian workers on such issues as how to communicate with the American people (Gorai & Jeffcoat, 2006). He urges them to adopt an American accent and familiarize themselves with such techniques as reductions that Americans tend to use. The American presence is more of an infringement as it represents a disregard and total dismissal of the local culture. Some of the American practices violated the Indian culture. For instance, the branding of cows goes against Indian practices. The American presence promoted international business only when Todd integrated his American beliefs and practices with the Indian culture. The key take-away from the film is that if the American presence is to facilitate international business, it needs to complement instead of overshadow native cultures. While the American presence that Todd represents has some impact on the native Indian culture, one should note that the Indian culture had a far more profound effect on the American presence. As noted in the discussion above, the Indian culture challenged Todd to abandon certain American practices and embrace styles that were consistent with the Indian way of life.

Compromises Creating Change 

The Outsourced movie explores a number of intriguing issues. The role that compromise plays in creating change is among these issues. According to the film, when one abandons hardline positions and embraces new perspectives and beliefs, positive change is realized. One of the compromises that Todd makes is that he allows the Indian workers to bring personal items to work provided that these items do not adversely affect their performance (Gorai & Jeffcoat, 2006). As a result of this compromise, the workers were able to lower the time spent speaking with clients to levels that the company found desirable. Another compromise that Todd made is that he introduced an incentive program. Through this program, the Indian workers were rewarded with some of the items that they sold in exchange for improved performance (Gorai & Jeffcoat, 2006). This program had a positive impact on the performance and satisfaction levels of the employees. Todd also embraced the Indian culture. For example, he participated in an Indian dance with his employees. As he dropped his beliefs and ineffective leadership style, Todd transformed his own life and the experiences of the Indian workers.

Impact of Capitalism on Capitalist Society 

The American capitalist society is based on the pursuit of profit. The form of capitalism that the Outsourced film explores undermines the American capitalist society. The film’s reimagining of capitalism suggests that it is possible for firms to achieve higher profits while investing in the wellbeing of their employees. The film also indicates that capitalism should be integrated with culture. The American capitalist system fails to acknowledge that culturally-sensitive business practices can have on business performance. On the other hand, the form of capitalism depicted in the film highlights the need for cultural sensitivity. Overall, this film highlights the numerous flaws and shortcomings of the American capitalist society. It highlights the need for American firms to adopt people-centric approaches.

In conclusion, capitalism remains the most common system of economic management. This system is responsible for many of the social ills that the world faces today. The film Outsourced offers insights on the changes that should be made to capitalism to make it more effective in promoting economic progress. The film also shows how capitalism perpetuates the oppression and exploitation of workers. Another issue that the film focuses on is the value of cultural sensitivity. When they incorporate the insights from the film into their operations, firms should expect significant improvements in their performance. American firms operating in other markets need to demonstrate respect for the local people and cultures.

References

Gorai, T. (Producer) & Jeffcoat, J. (Director). (2006). Outsourced [Motion Picture]. United

States: Shadow Catcher Entertainment.

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StudyBounty. (2023, September 14). Capital Seeks its Lowest Cost of Debt.
https://studybounty.com/capital-seeks-its-lowest-cost-of-debt-essay

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