Is Outsourcing a Smart Corporate Strategy?
For years now, the topic of outsourcing has been a heated debate here in America as corporations struggle to decide whether or not this is the best practice for their business. The current trend in outsourcing has been to outsource micro work that many companies would like to do, however overlook as it is labor intensive work that they cannot make a profit on the output. An example of this is low cost data management jobs for computer companies. Another trend in outsourcing is to send work overseas where the cost of labor is vastly cheaper than the labor here in America. While American workers fear that outsourcing is taking away employment opportunities from simple factory jobs to highly skilled engineering jobs, corporations believe they are seizing an opportunity for corporate growth and the ability to reach their full potential. Furthermore, after researching the pros and cons of both trends, I have come to the conclusion that outsourcing has proven to be a beneficial practice to corporations as well as in some occasions a positive outcome for American jobs.
While it is our first instinct to shy away from the idea of outsourcing being a positive move for a corporation, I found that if we have a better understanding of what work is being outsourced that the idea becomes less of a threat. In one article in an opinion section of the New York Times, it is explained that some companies are outsourcing micro work to both benefit their company as well as to help impoverished communities flourish. This idea is referred to as “impact sourcing”. Jobs that are created overseas through impact sourcing are jobs that could not be justified economically in the United States. “These are labor-intensive tasks that companies, governments, nonprofits or individuals would like to do ― but will only do if the costs are not prohibitive” (Bornstein, 2011).
These tasks can be items such as entering, cleaning or verifying data...