WASHINGTON—The United States Agency for International Development, or USAID, has decided to fund the development of outsourcing industry in Armenia.
The USAID announced on August 5 of implementing the development program in Armenia with Oracle’s Sun Microsystems unit as one of its participants. The USAID did not disclose the sum to be allocated to the Armenian program, but hinted that the goal was to establish Armenia as an outsourcing hub in the information technology sphere.
USAID’s moves to help bolster the outsourcing industry in Asia and Eurasia have sparked anger among Americans who say the US labor force is being displaced in favor of cheaper work-force abroad. A USAID spokesperson said however, that the program “will not displace American IT workers.”
The outsourcing industry meanwhile, specifically Indian companies, may find the new initiative advantageous because it will allow them to open new centers in the developing countries, rather than in India, where the cost would be higher.
According to a report by the Everest Research, India still remains as the dominant offshore location with the Philippines and China coming in second and third respectively. Companies, however, want to spread their risks and thus may be looking to outsource to other destinations, which may very well place Armenia at the forefront, especially with the US-backed initiative.