The Benefits Of Offshore Outsourcing Essay

968 words - 4 pages

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 that businesses have to use offshore outsourcing, and the positive impact of business competition on the economy is the reason why fueling business competition is an important effect of offshore outsourcing.
Another effect of offshore outsourcing is that it encourages business growth. Business growth occurs because resources are freed up to be used to improve the company’s products or services. John Miller writes that the only difference between American workers and offshore workers is that the offshore workers get paid much less (Miller). If an employer can save money by using offshore outsourcing then it is beneficial to do so because it leads to business growth. Like Miller, others might say that all businesses gain from offshore outsourcing is labor savings. However, labor savings is far from the only way that businesses benefit from offshore outsourcing. Pete Engardio, Michael Arndt, and Dean Foust claim that by using offshore outsourcing businesses are increasing in areas of quality, productivity, efficiency, and profit (Arndt, Engardio, Foust). This is important because it encourages the consumer to keep buying those...

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