Business

Is it right to outsource jobs?

WRITTEN BY
11/28/23
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Fact Box

  • Outsourcing is defined as “the process of paying to have part of a company's work done by another company.”
  • The United States began practicing outsourcing during the 1960s and 1970s; however, outsourcing gained popularity in the 1980s. 
  • Within many manufacturing companies, 70% to 80% of their finished product is a direct result of outsourcing.
  • Outsourcing begins in a four-step process: Program Initiation, Service Implementation, Final Agreement, and Program closure.
  • India is the top outsourcing destination for business due to its large and skilled talent pool and low cost. In fact, India produces 2.6 million STEM graduates a year and has the second-largest English-speaking population in the world.

Elisa (No)

If you ever had bad customer service, it wouldn't be surprising to discover the job was outsourced. Outsourcing results from globalization, which may temporarily be good for business but has unintended, devastating consequences. Outsourcing jobs is primarily motivated by a company's potential to save on costs, with its bottom line, and not customers, entering the equation. Outsourcing may save companies money, but it costs jobs in the US, contributing to higher unemployment rates, which produces income inequality. An article by Public Citizen has shown that nearly four and a half million US jobs have been lost to outsourcing. 

This practice also limits its employees' talent pool, negatively affecting the business. Invensis, a trusted BPO service provider, stated that outsourcing limits the growth and development of specific skills or traits of home-grown employees. If you have ever felt frustration on a customer service line, the individual is likely not well trained—an outcome of outsourcing jobs. While this may not be the fault of the hired person, it is the fault of the companies that support the practice. 

The short-term gains of outsourcing do not outweigh the long-term effects of industries in the US. Outsourcing is another business practice that is slowly destroying America while the elite profit. Indeed, the 'giant sucking sound' of all our strong industries and manufacturing jobs leaving the country, predicted by Ross Perot, a 1992 presidential candidate, turned out to have even more devastating consequences than anyone could have predicted, leaving America's economy floundering in a perpetual servile state. While outsourcing may seem like the smart solution, it produces devastating consequences for the American economy by gutting American jobs and diminishing the quality of goods and services. We must reevaluate our priorities and promote policies that safeguard the economy and American jobs.


Luis (Yes)

Outsourcing jobs offers a positive situation for all parties involved. Companies can get the expected results while paying less due to hiring workers and professionals from other parts of the world. Not only does the company benefit, foreign employees get better opportunities to gain experience and advance professionally. 

Additionally, foreign workers and professionals greatly benefit from receiving US dollars. In many parts of the world, such as Latin America, Africa, and Asia, those who get this currency usually have a better quality of life and can even protect their finances from the threat of inflation.

Another great benefit of outsourcing jobs is that it allows companies to expand internationally, opening the door for more markets to conquer and increase their budget. This eventually leads to more job opportunities and a significant chance of becoming a global-scale player that can compete with other elite businesses.

Considering that outsourcing allows companies to save money, they can eventually improve the value of the product or service. This will ultimately benefit the company and the consumer. Moreover, this allows for more competition between workers and professionals from all backgrounds, which results in better quality and efficiency from the employees.

Outsourcing has positively impacted jobs, prices, and companies. Attempting to regulate this practice could lead to many US companies leaving the country, ultimately damaging the workforce. While the attempt to stop outsourcing aims to protect US employees, it eventually reduces jobs, lowering the opportunities for US and foreign employees alike. Given these multifaceted benefits, it is clear that outsourcing jobs promotes cost-efficiency for companies and opens up new avenues of growth and opportunities for professionals worldwide. Embracing this globalized approach fosters international competition, drives quality improvements, and contributes to a more interconnected, prosperous world.

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