The idea of outsourcing has been hit by harsh criticism amongst the community and it is fair to say it is very understandable. Millions have lost jobs and have struggled to survive the financial burden the state of the economy has bestowed upon them. The idea of shipping jobs overseas just doesn’t seem fair nor ethical. However, if one truly dissects the impact of outsourcing, they might come to the realization that outsourcing might actually help the economy thus providing them more jobs for the future.
More and more companies have decided that in order to survive this economic downturn, outsourcing is the answer. Outsourcing helps companies maintain labor intensive yet critical business functions that are vital to their business’s existence. It also provides these companies an affordable labor cost that they simply would not be able to afford if they were to keep it domestically. Yes, outsourcing will cause reduction in jobs for current staffing, but without this option, businesses might have no choice but to close down altogether. In retrospect, it is better to reduce staffing then to completely kill it. It is better to keep half of your staff employed, then have all of your staff unemployed. Outsourcing also brings an optimistic outlook for the future. As the economy picks up, company budgets will slowly increase. Increased budgets will normally be reinvested into the company to help company growth. These budgets can be used to fulfill other positions, if not better quality positions, within the same company.
The moral of this article is to bring light on the positive affect that outsourcing might have and the main reasoning behind businesses choice to outsource. Businesses outsource to remain in business. We must also all realize that the development of jobs will always and continue to exist. Jobs will disappear but new ones will appear. People once feared the emergence of technology and computerization would kill thousands of jobs, but to find out thousands of more jobs were created to maintain this technology. Even more recently, companies overseas have started to outsource back into the United States, in way of English language training. This would not have occurred if businesses had not chosen to outsource. Many of us have become accustomed to seeing the negative effect one way, but not the positive effect another. This in detail has created the biggest misconception of outsourcing.