Why does u.s. companies continue outsourcing efforts despite their negative impacts on u.s. workers?

Introduction

Outsourcing has become a popular practice among US companies in recent years. It involves outsourcing certain tasks or operations to countries where labor costs are lower, which can lead to cost savings for the company. However, there are negative impacts of outsourcing on US workers that continue to be overlooked. This article will explore the reasons why US companies continue outsourcing efforts despite their negative effects on US workers.

The Negative Impacts of Outsourcing on US Workers

One of the main negative impacts of outsourcing is job loss. When a company outsources certain tasks or operations, it often leads to layoffs or downsizing of the workforce in the US. This can be devastating for workers who lose their jobs and struggle to find new employment. In addition to job loss, outsourcing can also lead to reduced wages and benefits for US workers. Companies may choose to outsource tasks to countries where labor costs are lower, resulting in a decrease in wages and benefits for US workers.
Another negative impact of outsourcing is the loss of skills and expertise within the US workforce. When companies outsource certain tasks or operations, they often choose to hire workers with specific skills and expertise from other countries. This can lead to a decline in the quality of work performed by US workers who may not have access to the same level of training or experience.

Case Studies and Personal Experiences

One example of the negative impacts of outsourcing is the case of General Electric (GE). In 2013, GE announced it was outsourcing its appliance manufacturing operations to a company in China. This led to the loss of thousands of jobs in the US and resulted in a decline in wages for those who remained employed. Many workers felt that they were not being valued by the company and were disappointed with the decision to outsource.
Another example is the case of the textile industry. In the 1980s, companies began outsourcing their textile manufacturing operations to countries where labor costs were lower. This led to a decline in the number of textile mills in the US and resulted in job loss for many workers. The industry has since struggled to recover, and many workers have had to find new employment elsewhere.

The Reasons Why US Companies Continue Outsourcing Efforts Despite Evidence of Negative Impacts

Despite evidence of the negative impacts of outsourcing on US workers, companies continue to outsource efforts. One reason for this is that outsourcing can lead to cost savings for the company. By outsourcing tasks or operations to countries where labor costs are lower, companies can reduce their expenses and increase their profits.
Another reason is that outsourcing can provide access to specialized skills and expertise that may not be available within the US workforce. Companies may choose to outsource tasks to countries where workers have specific skills and experience that cannot be found in the US.

The Impact on US Economy

Outsourcing has a significant impact on the US economy, both positive and negative. On one hand, outsourcing can lead to cost savings for companies, which can result in increased profits and job creation elsewhere in the economy. On the other hand, outsourcing can lead to job loss and reduced wages for workers in certain industries, which can have a negative impact on the overall economy.

Summary

The negative impacts of outsourcing on US workers continue to be overlooked by companies despite evidence of their detrimental effects on US workers. While outsourcing may provide cost savings for companies and access to specialized skills and expertise, it also results in job loss, reduced wages, and the loss of skills and expertise within the US workforce. As such, it is important for US companies to consider the negative impacts of outsourcing and weigh them against the potential benefits before making a decision to outsource efforts.