Outsourcing is a major concern nowadays. Taking control over industry and providing services by various outside suppliers for production in manufacturing, fashion industry, and a myriad of other in itself increases the percentage in unemployment within our borders. Major corporations prefer outsourcing, due to self-gain. Many choose to employ foreign employees overseas or hire third-party personnel for services to cut expenses and lower overall costs.
In my opinion, a large number of jobs, have vanished from our markets. Third world countries such as Indonesia and India have a great number of unemployment and people in such countries are employed insanely long hours with a minimum wage that is not even close to the minimum wage in our country. A number of
major corporations use third party accountants instead of hiring in-house professionals. The fashion industry uses off-shore products and fabrics to save on their costs. Most textile manufactures are off-shore in Mexico, Indonesia, etc. Because of all these reasons the textile manufacturing jobs have disappeared in the United States.
Due to large savings in overall expenses, our economy has transferred off-shores. American factories are based outside US borders, and what really belongs here to be imported. Many such examples are clothing, steel, toys, television sets, computer hardware, etc.
Beginning in the 1990s, the Internet-enabled networking, and advanced communications within and outside borders at an incredibly high speed. This was a time when many companies chose to employ people from India, and it was indeed very convenient since a large majority of them
spoke English and because of the convenience in time zone differences. It had its benefits, the businesses could operate 24/7 and the companies increased their revenues by cutting expenses. This especially applies to the IT industry.
Outsourcing is advantageous for corporations and companies because it lowers labor costs such as health benefits, federal and state taxes. It also eliminates the costs associated with operating and manufacturing facility, which includes utilities and other expenses. As a result, they increase their revenues and focus more on sales and marketing.
Besides some of the pros outlined, outsourcing imposes a risk of exposing confidential data to a third party. Other common issue areas include starched delivery time frames, sub-standard quality output, and miscommunication. Although outsourcing most of the time is cost-effective at times hidden costs involved in signing a contract across international boundaries may cause a serious problem.
One may say that outsourcing has overwhelmed our economy. Major companies often seem greedy by caring only about their gain. However, the middle and lower class of our people will agree that the average American is not happy
knowing the reason one is unemployed in our country is that we ship our jobs to other countries.
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