What are the benefits of outsourcing at a macro level?

Question

Besides the obvious, short term costs savings what is the big picture impact to the economy when labor costs drop due to outsourcing domestic jobs? Do the ends justify the means? Any studies done to support the move to Outsourcing?

Answer 1

Here are some resources that may help you answer your question... I used them to do a persuasive essay on outsourcing.

Answer 2

Nothing new about outsourcing. Economics bromides say work goes to the low cost provider. We are becoming part of a global economy so it makes sense that outsoucing will happen.


Outsourcing Times: Is Outsourcing Good or Evil? http://www.blogsource.org/2004/06/is_outsourcing_.html

Answer 3

The average wage will be reduced, keeping inflation in check. Of course with less income people spend less, so the economy could soften.

Also, skills easily outsourced will not be developed as much. People will get the "opportunity" to learn new skills, hopefully ones that aren't as portable (like cutting hair-just try to mail a haircut). They may learn skills that create insourcing as well.

Answer 4

i have a relative who owns one of those factories that the jobs were outsourced to. A lot of the people working in her factory were homeless or working tiring farm jobs that barely made ends meet before working in her factory. It boosts the economy in 3rd world countries.

Answer 5

benefits from outsourcing that a company can pay more attention and time to their core activity,definitely it will be effected to the economy of any country the country who is giving out source their currency will come down because the currency come out from that country and the country who is taking that outsource that country currency will come up because that country is getting currency