The Complexity of Outsourcing in Japan

Filed in archive News on July 22, 2010

© williamcho

Ever since the 2008 collapse of the Lehamn Brothers, young Japanese graduates are facing difficulties securing long term employment in Japan. This has also been contributed by the huge pressure on large companies to cut costs and outsource employment from China and Southeast Asia.

As a result, much of the business and work opportunities are done outside of Japan until recently where a shift of Japanese outsourcing companies such as Transcosmos have emerged. Similar to companies who are outsourcing offshore, the Japanese companies have now started to hire Japanese outsourcers. This means that companies in Japan are paying considerably low wages to local workers.

It can on one hand create opportunities for businesses to grow and thrive, however it can also dramatically change the economy. The recent report from New York Times provides more details on the situation.