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Global Outsourcing and Job Loss

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Global Outsourcing and Job Loss

Outsourcing has become a popular trend among United States companies within the last decade. American companies are feeling challenged to raise profits, lower prices, and put their products to market before the competition. International manufacturing is benefiting both consumers and producers in this regard. However, the question of whether or not offshoring is a positive or negative influence on the United States job recovery, in today’s unstable economy still remains. In this paper I will discuss the pros and cons of outsourcing in regards to manufacturing jobs and IT jobs within the computer industry.

DISCUSSION:

Manufacturing Jobs

American manufacturers are pressed to compete at a global level in order not to lose to the competition and have turned to outsourcing an increasing number of business processes. “A recent survey reported in a leading trade magazine that 66% of U.S manufacturers have now begun to outsource product design (Costello, Joel).” It is predicted that over the next year manufacturers will increase outsourcing of business processes by 10.7%. Among these processes being outsourced is engineering, finance, and logistics (Costello, Joel).

Outsourcing rather than major competitive threat has become a huge source of strategic competitive advantage amongst manufacturers. Manufacturers feel pressured to boost innovation and reduce delivery cost, so when resources needed to get the job done aren’t available nationally, companies begin to look globally. When a company is restricted from using a resource that allows them to compete globally they will lose to the competition, which in turn affects the U.S market and economy as a whole (Costello, Joel).

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