Since 2011, outsourcing jobs has become a major part of the way American companies produce goods. Outsourcing a job occurs when you obtain goods or services from a foreign supplier instead of from an internal supplier. Many companies in America pay people in other countries to produce goods instead of producing them here in the country because it seems cheaper. This practice, originally thought of as a solution to the rising prices of consumer goods has also become a problem.
While outsourcing does take away jobs from people here in the States it does help us by making prices for consumer goods lower.
Many major and small companies outsource jobs. Major companies such General Electric, Caterpillar, Microsoft, Wal-Mart, Chevron, Cisco, Intel, Stanley Works, Merck, United Technologies, and Oracle all out source jobs and have recently cut their workforce by 2.9 million people and hired 2.4 million overseas in the last decade. (Jilani)
Many of these major companies outsource jobs because people in China, Korea, Indonesia, and many other countries will work for much lower wages than people in the United States, which in return makes it cheaper for the consumers in America.
However, large companies aren’t the only ones guilty of our sourcing. While they may do it on a large scale and take the most jobs away from us in the United States, small companies outsource jobs too. Gene Marks, a writer from Huffington po and a self-proclaimed “outsource-aholic” says, “Outsourcing is a quick high and a way to feel… profitable.” He owns a small business and uses outsourcing for a number of reasons. It may be no secret that sending jobs overseas ensues cheaper production than the goods in the United States, but why?
Gene Marks, does it because when he contracts people overseas to do his work then he does not have to legally consider them as employees. This means that he does not have to give those people that work for him benefits, insurance, pay taxes, or worry about things like sick days, workers comp, vacations, jury duty and many other problems that come with hiring someone as a full time employee.
Marks easily outsources his jobs because his company exists online. Now he can just put the needed criteria in a contractor search engine and a specified search tool will look for him. This remains one way that people outsource jobs that isn’t commonly thought of by nonbusiness owners.
When big companies move factories out of America and overseas it takes many jobs away from people who need them to survive. I happen to live in one of those towns, Thomasville, Georgia.
My father was one of those people. Thomasville Home Furnishings, a company my grandparent started in the late 1970’s, has been the sole income for my single father since the young age of 14. The company produced bedding, curtains, and home décor items. They sold their products to many major companies such as Walmart and Bed, Bath and Beyond. He started by sweeping up floors and moved up in...