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The Bone of Contention: Should Offshore Outsourcing be eliminated in the United States?

While debate on switching entirely to on-shore outsourcing continues to heat up, outsourcing is still waxing stronger – it’s just an essential business solution in the hands of entrepreneurs. Of course, big corporations and organizations are even the greatest beneficiaries.

Across tons of sectors and industries in the United States, outsourcing is a common factor. Often, business owners and organizations embark on the following types of outsourcing in the United States;

  • Financial and Other Business Process Outsourcing; typical examples in this case include human resources outsourcing, call centers outsourcing, and retail outsourcing.
  • Professional Functions Outsourcing; examples include administrative support outsourcing, procurement outsourcing, legal, and accounting services outsourcing.
  • IT Functions Outsourcing; these include application development, network management, and cloud computing.

According to reliable statistics, healthcare and financial services appear to be consuming outsourced services more than others. It’s also important to note that outsourced manufacturing has continued to be a common solution for producers based in the US. Even government entities are increasingly leveraging outsourcing for its functions.

The Bone of Contention: Should Offshore Outsourcing be Completely Eliminated?

From the foregoing, many sectors, including government entities benefit from outsourcing. So it’s not a question of “don’t outsource, but don’t outsource to offshore destinations.” But why?

Those who feel offshore outsourcing to destinations such as Philippine, India and Japan is taking jobs out of USA are saying no to off-shoring. And, to the delight of these people, Donald Trump, the United States President, right from his campaign has determined to bring back all the jobs and stop offshoring. Some form of baits have been put up to discourage outsourcing to oversea countries, and at the same time threats are being meted out to business owners and companies that will pay deaf ear to the campaign against offshoring.

Can Beneficiaries Survive without Offshoring?

And, who are the real beneficiaries of offshore outsourcing? The answer is so glaring. Businesses of various kinds have leveraged offshore outsourcing to greatly grow their businesses by cutting huge cost and making more profits.

As a result, these businesses have continued to thrive regardless of persisting economic downturns. While these beneficiaries have no problem employing the services of outsourcing providers at home, they will have problem making ends meet and recouping meaningful profits since the on-shore outsourcing providers are far more expensive to keep up.

So, is it really fair to keep up an expensive workforce at the expense of the continuous existence of a business? Shouldn’t there be a balance or freedom to go for what has continuously proven effective in aiding business survival? After-all, a portion of the jobs are retained at home. Besides, there are still businesses that rely solely on onshore outsourcing.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.

One Response to “The Bone of Contention: Should Offshore Outsourcing be eliminated in the United States?”

  1. Greg Smith says:

    This is awesome. So many tips I haven’t yet tried. Will definitely keep referring back to this resource so I can try new ideas.

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