Offshore Outsourcing (O2) and Human Capital

Armela Anamali


In recent decades the economic development of many countries is much more as a result of the innovative ideas of human capital, rather than the material inputs. Today many states have set as a priority the knowledge based economy, and this for various reasons such as the intense specialization in specific activities, the impetus of research & development, the requirements of the market demand, etc.. Human resources are determined the currency of every society, in promoting the economic development or smoothing any crisis. On the other side a new trend is growing faster and faster, the outsourcing offshoring (that I have denoted shortly O2), considering the alternative the oxigen of a firm regeneration. What actually happens? If we refer to recent developments O2 and workforce training are mutually motivating each other. The development of technology and the ability to move freely brought the displacement of a range of activities from developed countries to developing ones, by increasing global labor turnover. This slipping initially motivated by the low cost of labor, is accompanied by two effects: Enhancing the importance of this production factor and finding alternatives for maintaining or increasing the level of employment in developed countries.The request for re/qualification of the workforce as per developed countries and the developing ones.The novelty of this paper lies in a cleave analysis of human capital as a determinant factor (labor costs, quality of work, education and training, etc..) of outsourcing offshoring.

DOI: 10.5901/ajis.2014.v3n3p93

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Academic Journal of Interdisciplinary Studies ISSN 2281 3993(Print) ISSN 2281-4612(Online)

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