Perhaps you are unaware that outsourcing jobs does not necessarily mean that they are going overseas. What you are referring to is offshoring, or the relocation by a company of a business process from one country to another.
The vast majority of small businesses (which employees most Americans) are not designed to do every job efficiently. It can be more cost effective for a business to outsource tasks to a another small business that specializes in that particular task such as IT, accounting or even janitorial services. Outsourcing these jobs to highly trained professionals, saves the cost of hiring, training, and benefits. It also allows businesses more flexibility as they can pick and choose individual firms that meet their immediate needs.
RJ--Thanks for writing. Offshoring is a big concern. Obama's stimulus did not do what he expected--creating jobs. So everytime a US job is offshored, it is one more American hurting. There have been studies done from some major corporations such as Boeing, that have admitted that offshoring is not working for them.
Anytime that we outsource a service here in Lake Worth, we lose control over costs such as the police and fire. I used the word outsourced because that is the word used in Dilbert. But I totally agree with you that it all can be more cost effective because of cheap foreign labor. Is the bottom line more important than people? If I had a business and needed janitorial services as an example, I would hire someone for that. I am not talking about that sort of outsourcing.
Happening here and elsewhere
Lynn,
ReplyDeletePerhaps you are unaware that outsourcing jobs does not necessarily mean that they are going overseas. What you are referring to is offshoring, or the relocation by a company of a business process from one country to another.
The vast majority of small businesses (which employees most Americans) are not designed to do every job efficiently. It can be more cost effective for a business to outsource tasks to a another small business that specializes in that particular task such as IT, accounting or even janitorial services. Outsourcing these jobs to highly trained professionals, saves the cost of hiring, training, and benefits. It also allows businesses more flexibility as they can pick and choose individual firms that meet their immediate needs.
RJ--Thanks for writing.
ReplyDeleteOffshoring is a big concern. Obama's stimulus did not do what he expected--creating jobs. So everytime a US job is offshored, it is one more American hurting. There have been studies done from some major corporations such as Boeing, that have admitted that offshoring is not working for them.
Anytime that we outsource a service here in Lake Worth, we lose control over costs such as the police and fire. I used the word outsourced because that is the word used in Dilbert. But I totally agree with you that it all can be more cost effective because of cheap foreign labor. Is the bottom line more important than people? If I had a business and needed janitorial services as an example, I would hire someone for that. I am not talking about that sort of outsourcing.