Is Outsourcing Affecting America's Economy?

Outsourcing is becoming increasingly common worldwide. While many businesses find it convenient due to many financial advantages they have when they outsource their projects abroad, this practice has a negative impact on the economy of our country. For many years, now the government is urging businesses not to outsource their jobs to countries with low economic growth like Asia, and Latin America. If this trend continues like this, the unemployment rate of Americans will increase to 20% in five years. This is why many politicians support the "Buy American" slogan and excessively object the idea of sending jobs overseas. 

 Many companies are choosing to outsource the manufacturing of their products. Outsourcing activities that are not crucial and different services have been a growing trend for years. One of the most beneficiary countries of this phenomenon has been India, for the reason that there are highly-trained English-speaking employees that can work in call centers, customer support jobs, and sometimes even high-skill positions like Information Technology services.

Although there has been a lot of controversy and disagreement over this trend, taking into account the negative impacts that it may bring to the country's economy, many Economy specialists are of the opinion that Outsourcing is not so damaging. The main reasons that company outsource their non-core activities and the manufacturing of their goods is cost-efficiency. In order to survive in the competitive market, sometimes they need to use this advantageous practice. The good news is they still have to pay taxes in America for the sale of their goods.

If outsourcing allows enterprises to reduce their expenses and produce goods at a lower cost, whilst remaining an advantageous business, why should it not be acceptable for enterprises to outsource jobs? After all, this is the concept of comparative advantage. Because the United States do not offer comparative advantage due to high wages and a strong currency, businesses are obliged to work with professionals of other countries, even continents. 

However, there are other opinions regarding outsourcing. Many analysts argue that it has been overly advertised and is not that easy to assess its costs or advantages. According to some recent research, it was found that some enterprises have realized significant savings. On the other hand, a great number of businesses are not that sure of this. Seeing it from the customer's perspective, we can say that products made in countries with lower economies are much cheaper than those made in America.

At the end of the day, there are two sides to every coin. In my personal opinion, based on many years of experience in business management, I think that advantages that come with outsourcing are higher than disadvantages. There are many arguments that support my opinion, and the strongest one is that companies that survive in the market are regular taxpayers. Outsourcing their projects is a great way to help them remain such; therefore, this is a good enough reason to have a positive approach to outsourcing.  If you're looking for professional services that guarantee success, please visit our website www.gdicwins.com to learn more about how we can help you!