Is Outsourcing A Business Practice?

983 Words4 Pages
It should be illegal for US-based businesses to outsource their customer service to foreign countries because it weakens the economy and the job market in the US. Offshore outsourcing is a business practice or process that means to export information technology (IT) and manufacturing jobs to other developed countries outside of the US for the sole purpose of cutting costs, such as labor costs and tax savings. By doing so, the US economy is negatively affected, unemployment rises, and funds through taxation are paid to other countries by US businesses. Outsourcing needs to stop and should be illegal. US businesses need to invest more time and money to research and develop other ways to save money, such as cheaper manufacturing goods that still produce the same quality item.
Offshore outsourcing is a large issue, much larger than people realize, and has been occurring for too long. On April 10, 2006, Electrolux, one of the world’s largest manufacturers of home appliances, closed their manufacturing plant in Greenville, North Carolina and moved to Juarez, Mexico. (Lach, 2012)
The main goal of outsourcing is to cut costs while maximizing profit, which means that labor costs are the primary reason for sending jobs overseas. Recently, the margin of cost between the US and China declined by almost 50%, regardless of the increase in labor costs in China, most US companies have no plans for bringing those jobs back to the US. Though the labor cost savings are not as low in China as
Get Access