The Benefits of Offshore Outsourcing

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Recommended: Brief introduction of outsourcing

If offshore outsourcing has such a negative impact on the economy, then why are businesses practicing it? Is it just because of greed? Actually, offshore outsourcing can promote economic growth in some ways. First off, what exactly is offshore outsourcing? Simply put, offshore outsourcing is a business tactic where a company sends a part of their service to another country to be run by a different company. Offshore outsourcing has been seen as a negative business tactic. However, it affects the economy in some positive ways, such as it fuels business competition, it helps business growth, and it opens up new and different types of jobs. One effect of companies’ use of offshore outsourcing is that it fuels business competition, and business competition is good. It is important because it gives one company an edge over another. According to Winston Pepito nowadays if companies do not use outsourcing they will lose ground against the competition (Pepito). If we look at figure one on the previous page we can see this by examining an illustrator’s depiction of offshore outsourcing. This clever illustration suggests that if a company does not use offshore outsourcing that company may fail. This is noted by the personified factory holding a sign that says, “China or bust.” Winston Pepito writes that some say outsourcing helps companies stay in business while others say it is a “disease” ruining the lives of American workers (Pepito). However, it is more important that businesses stay competitive than losing a few low-end jobs in America. Cyber Futuristics claims that competition forces a business to improve the quality of their products or services as well as provide them for cheaper prices (Cyber Futuristics). The fact... ... middle of paper ... ...ore outsourcing. Offshore outsourcing not only brings about economic growth but it also brings about new job opportunities for Americans. In conclusion, it is a fact that offshore outsourcing has its benefits. It is also true that it has its downside. The main downside is the fact that when a company outsources a service to another country American workers do get laid off. However, this is only a short term effect, and it is nothing to worry about it. Most will not even be affected. The long term effects of offshore outsourcing are that it promotes business growth, it encourages business competition and it is a factor in the development of new jobs. All of which outweigh the downside. It is important to see that offshore outsourcing is not something to be afraid of. It is actually a good business tactic and it has many positive effects on the economy.

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