Introduction Outsourcing has become a verycontroversial issue more recently in the United States.
As the global economy has continued to growit has created more opportunities and incentives for the outsourcing ofAmerican jobs to foreign countries around the world. The majority of companies in the United Stateshave felt some effect of the outsourcing that is taking place. The American based company Emerson AutomationSolutions is beginning to outsource more jobs and it can lead to multiplebenefits and advantages for the company as a whole. But the company is faced with a multitude ofdisadvantages along with ethically based dilemmas when it comes to making thedecision to outsource.Advantagesof Global Outsourcing The main advantage tothe United States companies outsourcing is that they can reduce costs by havingtheir manufacturing and assembly done overseas where the cost of labor is significantlyless than the cost of having it done in the United States . Theses lower costs inturn improve profit margins forcompanies which benefits the company as a whole. While reducing costs remains the main benefitof outsourcing, access to industry experts is another advantage.
In theUnited States it is often much more costly to retain a United States industry expert. A very competent industry expert can now beobtained who works from an overseas location for a more reasonable cost becausethe cost of living in these other countries is much lower than it is here inthe united states. To have industryexperts based in the united states would require much larger compensation froma company. Not only because they require a larger salary but because they wouldhave to travel to foreign facilities where there may be trouble interoperatingthe local dialects. Therefore creatingeven more of a disadvantage. But if youcould pay someone in another country with the same qualification less for theirexpertise while being able to do a more proficient job the a company cangreatly increase its potential for growth and competition with similarcompanies. This in the mean time would benefit investors, stake holders, and share holders.
Another significant benefitto outsourcing is having a larger workforce available. Also having this larger workforce availableallows a smaller company to compete with larger companies by outsourcing amajority of their workload. Finally, itcan be argued that morally, countries like India are now enjoying some of theluxuries that our poorest U.S. citizens have been enjoying for decades. Another benefit is that as poorer nationsbegin to excel at doing the jobs available from outsourcing to their countries,they will eventually be able import products made in the United States andthereby increasing our economy.
Sooutsourcing has led to a decline in the poverty of the countries that we outsource to. Outsourcing into these developing countries hascertainly helped them when you consider that jobs is these areas have beenscarce and far between until the onset of global outsourcing.