A Functional Relationship between Division of Labour and Outsourcing

Division of labour has been recognised as a source of wealth to nations, by some experts without considering its effects on labour. However, some experts are of the view that increasing division of labour contracts the range of choice of ways of making a living for the working class. Thus the outcome of division of labour is the lowering of value of individual workers. Workers’ activities become increasingly narrow and monotonous, through division of labour which mars instead of developing their creativity. Outsourcing on the other hand, has been considered a requirement for corporations to earn higher profits and to respond to competition. Thus, companies that refuse to look outward for lower-cost inputs may lose their competitive advantages under a global setting. This paper contends that the logic of outsourcing cannot be mutually exclusive from the logic division of labour. Outsourcing simply implies the internationalisation of division of labour. Whereas division of labour was localised, outsourcing has been globalised to provide capital with additional leverage to exploit labour globally