Pros and Cons of Outsourcing

1004 WordsJun 1, 20135 Pages
International Business 14 Feb 2013 Outsourcing Outsourcing is the contracting out of an internal business process to a third party organization. The term "outsourcing" became popular in the United States near the turn of the 21st century.(6) Outsourcing is big business today even for small businesses. Like every business decision we are faced with the advantages as well as the disadvantages of relocating part or all of a business. Outsourcing is one of the fastest growing trends in business as large-scale organizations have latched onto outsourcing due to the almost immediate savings and quality improvement. (1) Saving money by cutting operating costs, cheaper labor and lowering the cost associated with training is ultimately…show more content…
Bottom line is since 2001 the United States has lost over 2.8 million manufacturing jobs, while expanding its workforce overseas by 2.4 million. It can partly, it can be explained by cheaper workers and in my opinion greed in corporate America. According to a report on outsourcing “Manufacturing employment collapsed from 19.5 million workers in 1979 to 11.5 workers in Dec of 2009.”(4) Yes it is a drop in 8 million workers over 30 years. This has taken place in a country whose has a deficit of 1.1 trillion for four years running. It is estimated that by 2015 the number of jobs outsourced could be as high as 3.3 million. The practice of outsourcing has helped many companies in the US and Internationally but it has devastated the American Industry. Comparably well paying jobs are not being created fast enough to make up for positions that were sent offshore. With fewer people working less money is available to spend common items and on bills. The debate goes on and on blaming Politicians, President Regan or President Clinton for outsourcing. (2) Bottom line is it exists and many big businesses and their CEO’s have profited off a great loss to the American people. Outsourcing has damaged our country in ways that I feel the United States may not be able to recover from if a change is not made soon. Works Cited "The Costs Associated with Outsourcing - Examining Outsourcing from Both
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