The reasoning behind many companies’ increasing preference for sending information technology (IT) jobs overseas is logical. After all, it is logical in today’s business world to aim to be a viable competitor in the fast-paced world of technology. Therefore, an ever growing number of companies are contracting with individuals or other companies overseas to produce the same products and services they have been or would be producing in the United States. Fortunately, discussion of this issue has brought it the forefront of the business world and the minds of nervous technology employees who may be concerned about their jobs.

The loss of domestic employment and gain of foreign employees does not negatively impact those companies who choose to contract for offshore outsourcing. In fact, the gain of foreign employees actually means the company can produce the same products or services, if not more, for far less than it could produce the same amount domestically. This is the reasoning behind many technology companies’ jumping aboard this popular trend. Companies are discovering that sometimes in order to maintain price competitive, it is necessary to ship their domestic jobs overseas. For example, a project that may cost upwards of three million dollars here in the United States might be accomplished for under $400,000 in a foreign country. That represents hundreds of thousands of dollars in savings for a company. This type of savings is a significant number for a company looking to remain price competitive in today’s market.

Some individuals believe the practice of offshore outsourcing is neither good nor bad, but is a growing reality that needs to be addressed and identified within the United States. Because America has a minimum wage, they argue, some companies decide to go overseas to produce their work more cheaply. Although a minimum wage may save Americans from having to work in a sweatshop-type setting, it can result in a rise in unemployment and job losses throughout the technology industry. Companies have to decide if this is an impact they are willing to live with and whether or not staying price competitive is more important. In an extremely competitive global economy, it is difficult to find fault with companies who choose to take advantage of developments in technology to send jobs overseas. Yet the impact on American workers remains a matter of serious concern.