Caused by titanic costs of employment in USA. Workers are overtaxed for FICA $160 billion a year. Subsidize government and uninsured health care $400 billion a year. Can’t carry that burden in a global marketplace.
U.S. corporations need to help the American workforce first, not just the bottom line. America is known to be a great country, when you forget about your people it can be a downfall of this great nation.
The knee-jerk reaction with many high level execs is to send jobs overseas without trying to make domestic outsourcing work. These execs are not earning the money they make. Each job lost reduces consumer demand. Only business can create jobs, not government. Perhaps it will take a terrorist attack, crisis, or security breach in India or China to bring jobs back home.
Firms that only use offshore outsourcing to reduce costs will fail. Those using offshore outsourcing as part of improving the value chain for meeting customer’s needs will thrive.
If business needs require it, such as company presence in foreign country or cost savings, I approve it.
We lose the low-tech assembly jobs (clothing and trinkets) and gain the high tech assembly jobs (autos). We’re OK so long as we don’t outsource our defense and foreign-policy jobs.
Good politics, lousy economics.
It is a very short-term, narrow-minded view of employment. However, I think the long-term discussion should evolve around education and training — of current workers and how we prepare people for the workforce.
Offshoring will make the us more competitive in this world economy as it give the worker in the us the incentive to develop more technical and innovative skills.
I believe it is a Luddite reaction to a jobless recovery.
I agree with the backlash. How will the U.S. ever get out of its trade deficit? We need to stop this now.
If we are unable to react to the global markets we will find ourselves unable to compete.
Benedict Arnolds, yes. But survival is very important.
Backlash should lead to renewed commitment for training and education improvements for U.S. workforce.
You cannot compete globally unless you use global resources.
Companies need to do what is right for the investors and if that means moving jobs offshore to be competitive then they should.
Supply, demand, cost-effectiveness, and efficiency control outsourcing. Global communication vehicles allow global outsourcing.
Just as manufacturers have relocated plants, offshore outsourcing will eventually become routine.
I sympathize with the unemployed. I believe there will be long-term economic, worldwide benefits from offshore outsourcing. But there will be painful economic/lifestyle adjustments for the U.S. in the short term.
Companies have a responsibility to their shareholders to provide the best return to them. If this assists in a greater return they should do it.