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So Tell Me, Why is Outsourcing Good for America?

A lot of American citizens have been screaming blue murder whenever they here the term “outsourcing”. Outsourcing is of course not a new occurrence – although a lot of citizens have been made to believe that outsourcing is the “new” thing that is taking away their jobs. A lot of service companies began creating jobs overseas in order to gain access to foreign markets. These companies audit, repair and consult where their customers or clients are located. To put it in a way that you’d understand, oversees clients or customers do not have to come all the way here. In addition, a lot of foreign markets are really growing rapidly as lots of domestics companies become saturated. About 60 percent of the revenue of American IT companies is estimated to be created overseas. In a variety of industries which range from consumer products to banking to work placement to even aerospace – this leads companies to report that their overseas revenue totally exceeds their domestic sales.

Basically, a lot of companies are taking time to focus more on their core competence. They simply subcontract a lot of their activities to domestic suppliers. When viewed from that perspective, offshore sourcing is really a minor part of the trend to decentralize business processes. Moreover, these companies have also learned that in a lot of cases, the higher productivity of United States workers offset the wage differential and all the other costs of operating out of the country.

The cost reductions gotten from outsourcing helps to open up new market opportunities for companies in the United States companies, and this also help to generate additional work here in America. In a general way, the company end up with a lot more resources in order to improve its performance. You need to understand that outsourcing and the savings that it generates are really the beginning and most definitely not the end of the adjustment process. The company that outsources can now afford to buy new equipment and then expand training programs. Thus, its higher domestic labor costs can be easily offset by much higher worker productivity.

Over a period of time, there is a real positive feedback concerning the effect of outsourcing. As developing nations develop their own economies, new markets will also be created for the United States made goods and or services (wink) – this is simply a win-win situation.

ImageHost.org Daven Michaels Author of the book Outsource This!

14 Responses to “So Tell Me, Why is Outsourcing Good for America?”

  1. mike nicolas says:

    I absolutely agree with you, outsourcing is good for America. It offers a lot of opportunities!!! Thanks for the post:)

  2. Luna Payne says:

    If you want to maximize your revenue and minimize your expenses, having the access in specializing skill and services, having the wants in concentrating more on your core business and wanting to save time, money and infrastructure..

    Outsourcing is the best way in achieving this wants!!

    I salute you Daven for posting this blog…

  3. Jc Lopez says:

    Two thumbs up Daven!

    Outsourcing not only helps open up new market opportunities for companies in the US but also helps other developing country grow their economy. It is really a win-win situation.

  4. czane carmie says:

    outsourcing is a good thing simply because it helps small businesses and solo entrepreneurs compete with big business-competition grows business, which leads to more jobs


  5. MIMI says:

    So definitely TRUE!

  6. R_M says:

    It really offers a lot of oppurtunities!!!…Great Job Daven!!..

  7. Treb says:

    I totally agree with Daven! Why would small companies pay for large amount of money when they have a choice to pay less and get the same results using outsourcing from other countries. Small companies that are just starting needs every help they could get! Thanks Daven…

  8. Tiburzz says:

    I am so amaze, this article is awesome,thanks for the posts they really help!!!

  9. nesie says:

    Enables American small businesses to grow, thereby providing more jobs for American workers.
    Love this post.Thanks!

  10. Strife says:

    It will help many small business to grow more..Great Job Daven!!!

  11. Jason Maran says:

    Hey Daven. Great info. I too believe that outsourcing is good for America. I have a few agent with you. As a result we are growing and spending more money in the US. Good show!

  12. Spot on with this write-up, I absolutely believe that this amazing site needs far more attention. I’ll probably be back again to read through more, thanks for the advice!

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  14. FidelFKimme says:

    Fastidious answers in return of this issue with firm arguments and telling everything
    on the topic of that.

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