What outsourcing does to america
Outsourcing has been a hot topic in the business world for decades. Some argue that it is essential for companies to stay competitive in today’s global economy, while others worry that it can harm American workers and businesses. In this article, we will explore the pros and cons of outsourcing, using case studies and personal experiences to illustrate both sides of the argument.
The Good: Outsourcing Can Save Companies Money
One of the main reasons that companies outsource is to save money. By contracting with a third-party provider in another country, companies can take advantage of lower labor costs and access to specialized skills.
This can be particularly beneficial for small and medium-sized businesses that may not have the resources to hire and train their own employees.
For example, a company that produces software may outsource its customer service operations to a call center in India. By doing this, they can save on salaries and benefits for American workers, as well as access a large pool of skilled individuals who are fluent in English and able to handle complex technical issues.
The Bad: Outsourcing Can Harm American Workers
While outsourcing can be cost-effective, it can also have negative consequences for American workers. One of the main concerns is that outsourcing can lead to job losses in the United States.
When companies outsource, they often contract with providers who offer lower labor costs and access to specialized skills. This means that American workers may be displaced as their jobs are moved overseas or to other countries.
For example, when General Electric (GE) outsourced its customer service operations to a call center in India, it resulted in the loss of thousands of jobs in the United States. Many of these workers had been employed by GE for decades and were given little notice before their positions were eliminated.
The Ugly: Outsourcing Can Damage the Economy
In addition to harming American workers, outsourcing can also damage the economy as a whole. When companies outsource, they often contract with providers who offer lower labor costs and access to specialized skills.
This means that American businesses may be less competitive in the global marketplace, as they are unable to keep up with the cost savings offered by their foreign competitors.
For example, when American companies outsource their manufacturing operations to China, they are often at a disadvantage compared to Chinese companies that have access to lower labor costs and government subsidies. This can lead to a decrease in exports from the United States and an increase in imports from China, which can have a negative impact on the balance of trade.
The Case Against Outsourcing: The Impact on American Workers
One of the strongest arguments against outsourcing is that it can harm American workers and their families. When companies outsource, they often contract with providers who offer lower labor costs in other countries.
This means that American workers may be displaced as their jobs are moved overseas or to other countries.
In addition to job losses, outsourcing can also lead to a decrease in wages and benefits for American workers. When companies outsource, they often contract with providers who offer lower labor costs in other countries. This means that American workers may be forced to accept lower salaries and fewer benefits in order to remain competitive.
For example, when General Electric (GE) outsourced its customer service operations to a call center in India, it resulted in the loss of thousands of jobs in the United States. Many of these workers had been employed by GE for decades and were given little notice before their positions were eliminated. The workers who were able to find new jobs often had to accept lower salaries and fewer benefits than they had previously.