Outsourcing: benefits to the country
Outsourcing is sometimes called offshoring or offshore outsourcing. That means that outsourcing is the employment of qualified workers from the countries that are situated
overseas. However, there are cases, when labor force gets drawn to a particular place within the same country.
Outsourcing happens when a company transfers a part of work to another company, which is usually situated abroad. Out-tasking is a similar term that means that involves the transfer of a work segment to another company. Among the areas with a strong tendency to outsourcing are of course IT technologies, data analysis, research process, software development, legal support, animation, etc.
It should be noted that the USA is one of the countries that take advantage of outsourcing. The main reasons for it is that it allows raising the quality of goods and services and lower the prices based on smaller wages paid to specialists from another country (in most cases those are the developing states).
Many are apprehensive about outsourcing taking away job places from the natives. However, the figures disagree. According to http://www.ncpa.org/pub/ba/ba480/, “(in 2003) we exported nearly $54 billion more in services — including legal work, computer programming, telecommunications, banking and engineering — than we imported. Moreover, this surplus was responsible for the addition of 400,000 jobs in 2003.”
So the punch line is outsourcing and giving jobs and the chance to earn money to workers from other countries creates better jobs for the natives. As well, the product availability improves – prices for the outsourced goods drop 10-30%.
Outsourcing betters the standard of living. According to the McKinsey Global Institute, for every $1 outsourced, the economic gain to the United States as a whole is $1.12 to $1.14; whereas the country to which a job is outsourced gains just 33 cents. But 33 cents is also good money, so both parties are happy.
A lot more can be said about the benefits of outsourcing. Read about the outsourcing opportunities for Americans in the next post.
[tag] outsourcing, offshore outsourcing, offshoring, out-tasking, IT technologies, data analysis, research process, software development, legal support, animation [/tag]
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