| Offshore Outsourcing: An Overview
An issue of increasing importance and relevance to the United States’ workforce is offshore outsourcing. In companies that are already outsourcing and companies that have not begun, both employers and employees are considering the impact of moving jobs overseas on their bottom lines and their bank accounts.
Offshore outsourcing has begun to impact people from all walks of life, as many jobs first developed in the United States are exported to foreign countries. People who once found employment in the United States may now lack job security as they fear their type of job may be the next to be outsourced. Offshore outsourcing in its most basic sense involves shipping certain jobs overseas. Many of the jobs being exported from the United States are technology jobs, as increasing developments and improvements in technology have made it possible to do this work in many places in the world. Technology jobs that once boomed in the United States are now finding homes in countries like India, China, and Japan.
Why are so many jobs increasingly shipped overseas? The answer is simple: cost. It is often cheaper and easier for companies to outsource these types of jobs. Employees are beginning to discover that with improvements in technology, their jobs can be more cheaply accomplished by overseas employees. The outsourcing companies would rather pay a lower wage than a higher one in order to get the job done quickly and efficiently. On the other hand, close examination of the actual cost of outsourcing has shown that it is not as cost effective as once thought. The costs of doing business overseas, including language barriers, dealing with foreign governments, transportation, and organization of projects from a distance decrease the savings that employers gain from cheaper labor costs. In addition, outsourcing may cost a company its good will with the American public, which is angered by the loss of jobs to foreign workers.
The use of offshore outsourcing as a cost-saving measure has sparked many debates and much controversy in the United States today. Companies and employers are debating the merits of offshore outsourcing versus the negative impact that has made many Americans disfavor the idea. |