Summary: The Benefits Of Offshore Outsourcing

An astounding 300,000 positions are outsourced annually throughout the country (creditdonkey.com). Outsourcing is the process of receiving services or goods from foreign suppliers for our economy’s benefits. Offshore outsourcing however is the process of getting certain jobs done from overseas suppliers. This topic is highly controversial because many people find it to be taking advantage of foreign countries and their workers. Although some critics claim it is not fair to the foreign workers, outsourcing can truly help out America’s economy because it allows U.S. companies to sell to foreign markets with overseas branches, American businesses gain high profit margins, and it greatly increases the creativity and efficiency of the economy. To

One example of how outsourcing increases profit margins is, “You no longer need to invest in recruiting and training expensive resources for your business. Outsourcing widens your pool of resources and gives you access to a better quality for less” (Daya). Being given access to a wider variety of talents for less investments allows for more choices and results in higher profits. Gaining high profits helps the economy by allowing businesses to invest in more important things such as updated technology and ideas. Some might say that investing less in recruiting and training isn’t fair to foreign workers looking for a job. However, if the worker turns out to not be what the business was looking for then they haven’t wasted as much time or money then would have normally without outsourcing. Another example of how outsourcing increases business profits is, "Labor costs in most other countries are lower than in the United States. Employers not only will pay lower wages, but they won’t have to pay unemployment tax, Social Security and Medicare taxes, workers compensation, health insurance and other employment costs associated with domestic workers. The larger the company, the more employees it can outsource and the greater the savings will be” (Myers). Because labor costs are lower in most other countries, outsourcing a multitude of workers at once using outsourcing is much

One example of how outsourcing increases efficiency and creativity is, "If you’re a small business, odds are you operate within a specific niche and are great at what you do. Outsourcing will allow your business to focus on those immediate activities and adjust priorities quickly if needed.” (Matthews). Allowing specific people to work on the jobs they are good at and will allow them to get it done faster and more efficiently. Some critics say that in a small business all of the people should be working together to get things done because there isn’t many people. Outsourcing however allows these small businesses to grow and get more workers that are very good at what they do. This allows for each type of worker to get done what they are good at. Another example of how outsourcing increases efficiency and creativity is, "However, many freelancers and third-party companies desire a steady relationship with the businesses outsourcing tasks to them. Thus, you can manage your third-party team or freelance team as if they were a sub-team of your company. This allows you to keep an eye on these outsourced tasks, and understand what your outsourced teams are capable of and where their limitations lie” (Matthews). Being able to control what your third-party company works on based on their skills will allow them to grow and experiment with what they are skilled at. In a way