Analysis of Economic Affect Towards Outsourcing

Throughout history hundreds of jobs have been outsourced to other countries for the benefit of cheap labor. American outsourcing has been blamed for the constant lack of American jobs causing a controversy between the labor force and businesses that benefit from outsourcing. In the introduction of, Does Outsourcing Harm America?, outsourcing is defined as a “business practice in which a company hires service providers, usually located outside of the country, to do work that the company believes can be performed more efficiently and less expensively by these outside contractors” (7). Although many people believe that outsourcing is a recent practice in business, this is not true. Outsourcing has been around since the colonial times, the production of covered-wagon covers were outsourced to Scotland while the raw materials for the product were imported from India. During the 1970s computer companies began outsourcing their payroll applications to outside providers. Outsourcing became a well-recognized practice during the 1980s due to the high demand of IT workers. Although there was a high demand for IT workers, large corporations viewed the IT workers as an expensive labor force. Therefore many corporations led their demands elsewhere for the sole purpose of lowering their expenses. Outsourcing is not just used for IT solutions; major companies are embracing the benefits of outsourcing, companies such as Apple, Wal-Mart, Boeing, Sears, Disney, etc. US corporations have expanded their needs for outsourcing from just IT departments. Auto parts, cell phone parts, airplane parts, tax return preparations, and clothing manufacturing have all been deemed as jobs that can be produced at a lower cost rate outside of the US. Even though ou...

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...y considered expensive because American workers deem themselves to be greater and do not approve of basic job positions, they aim higher. Therefore, companies need people to do these basic jobs and if American workers will not then companies have to search elsewhere for the workers. The amount of money a company spends on just one American worker per year is often enough money to pay several outsourced workers. Outsourcing for companies is a valuable practice that if done correctly could expand the company. Outsourcing does not greatly influence any economic troubles and therefore should be seen as a valid option for companies searching to expand. Instead of viewing outsourcing as an enemy, Americans should see it as a benefit for our affordable goods and services. Since it is proven that outsourcing does not affect our economy as much as everyone believes it does