Essay on Business Outsourcing

1599 Words 7 Pages
Outsourcing to foreign shores, or offshoring, is an idea that has long been in practice, yet meets resistance when American business seeks to send jobs overseas. Sending jobs overseas may help a faltering American business keep their doors open and keep more important jobs open for American workers. Outsourcing has been a business practice for hundreds of years. Adopting legislation to curb Offshoring will limit American businesses competitive edge, one that helps small business thrive and grow, and helps big business to plant an American flag in the international business of offshoring.

Offshoring began in the industrial revolution, with the advent of advances in transportation and communication. America had successfully entered
…show more content…
The U.S. has lost 2 million jobs due to global trade over the past 20 years but in just 10 years has added 35 million new jobs (Kirkpatrick, David 2004). While American businesses are sending jobs overseas, it does not mean that these jobs are for Americans. Many qualified American white-collar workers would not work at the same salaries offered by smaller or start up companies. Many companies are spending less and less on human resources to stay competitive. A typical salary would start at $50,000; add administrative costs, training and benefits and you are at roughly $78,000, a 56% increase on the original estimate (Gambhir, Satnam 2004). A typical outsourced worker would come in at much less than the original estimate of $50,000

Another misconception is that very few quality businesses are involved in outsourcing. Nothing could be farther from the truth, according to Satnam Gambhir, “In fact, it would be challenging to find a single Fortune 500 company that is not outsourcing any part of its daily business operations to offshore outsourcing firms.” In order to stay competitive in this new business practice, American businesses have to realize that American technology in IT and Telephony and fiber optics directly contributed to the outsourcing boom (Gambhir, Satnam 2004).

The myth that offshoring will increase unemployment can be addressed easily; Employment is on the rise according to Global Insight inc. John A. Challenger
Open Document