Outsourcing Jobs to Foreign Countries

Outsourcing Jobs to Foreign Countries

What does it mean to be a true American? True American citizens have pride in their family, pride in their lifestyle, and most importantly, pride in their economy. It goes without saying that this pride causes Americans to feel the need to buy American-made products. Why give United States dollars to another country when American-made products are the best and will stand the test of time? After the September 11th terrorist attacks it is argumentatively illogical that America would help other countries grow when our own country is still in need of every penny it can possibly earn. At first glance it seems the best option for America is to give jobs to Americans. But how can we have a competitive American economy if we cannot even afford to make the products? The latest trend among American corporations is to send some of their production to other countries in order to save money. In the long run, outsourcing jobs to foreign countries is not only beneficial to large corporations, but to every single American citizen as well. It benefits the economy as a whole, affects the cost/price relationship of products, and allows companies to focus on core competencies such as marketing, advertising, financing and engineering.

Outsourcing, also known as Offshoring, is the newest trend that Corporate America is using to cut its costs and generate greater revenue. Since day one, the main motivational factor for every American business is to generate profits. According to Capstone Consulting Partners (2005) (CCP), corporations can expect to cut their operational costs in half when compared to keeping production within the United States. This savings is huge when considering that operational costs are often millions and millions of dollars for the countries largest corporations. This savings will ultimately increase revenue and allow companies to expand into uncharted territory and grow as an American Corporation. This growth in revenue will eventually lead to an increase in the amount of jobs available for Americans. In addition, CCP (2005) also stated that operational and training costs, together with cheaper and more efficient labor will account for a 70 to 80% savings over traditional production within the United States. When production is completed, products are then shipped back to the United States for American corporations to do a final quality control inspection. This process ensures that these outsourced products meet the high standards needed to earn the label of an American-made product.

Known world wide for their reliability, American products must still compete with Asian and Eastern Europe technology. A country such as India, China and Russia are widely known for their technologically skilled minds. These countries are capable of producing information technology (IT) services at a reduced cost and offer corporations wildly imaginative opportunities. With the mass production of IT services going on in these parts of the world, these countries are producing IT products at a fraction of the cost while Corporate America is paying white collar American workers as much as five times more to complete IT related projects (Heffes, 2004). With Offshoring costs being so low, United States corporations can afford to produce higher