Outsourcing...Good vs. Bad?

Question

I am working on a project for a company on whether or not to outsource the work to China. We want to keep all employees but outsourcing our work seems so easy and so cheap. Is there anything the city could do to help us out since we are very influential in the city? What alternatives do we have if we want to keep our employees but are currently losing profits? What all is bad about outsourcing?

Thanks

Answer 1

If you want to be a successful and profitable company, outsourcing will be inevitable.

Answer 2

Ahhh outsourcing, my enemy. I work in QA IT and it is a common area in companies that are being outsouced to India and China. Things to consider...the company is taking the business and boosting the economy in other countries and not in their own country - research the GDP and the GNP or take a crash course economy class. So now, our US employees are forced to look for new jobs, change careers, relocate, accept less pay and perhaps if employers offered continued training or quality job experience and good benefits to discourage employee from high turn over, perhaps the US employment force would be stronger and dedicated to their employers.

Another side aspect to consider if you have not expereinced this first hand if it is for call center purpouses....ever call up and get someone from one of the outsourced countries who does not understand a word that you are saying and you can't understand a word that they are saying and all you are trying to do is determine your APR on a credit card. I closed 3 accounts because I could not understand the person on the other side of the phone.

Keep the business in the US. While your company may be losing profit, scale back on the perks, pay raises, senior management bonuses, crappy end of year give aways with the company name on it and invest in some solid employees and training and shake out the riff raff and grow domestically. IIf your company is as dumb as my old company, get out of the high lease of the fancy building and go to the burbs - that will help as well.

Answer 3

Outsourcing is bad because there are less jobs for the people here in our own country. Contributing to the unemployment problem by getting cheap labor is a bad idea. Not to mention, it worsens your company's reputation. People won't want to do business with a company that oursources jobs to take the easy way out.

There has to be a better way to improve your company's profits than getting rid of your employees. Try new marketing strategies.

Answer 4

Good for owners/stockholders/senior execs.

Bad for average employees in US.

Why go? Asia is notorious for underpaying their labor pool. They have little safety (OSHA etc.) requirements, and labor laws are virtually non existent in many countries. Pollution goes unchecked and air and water quality are very unaceptable as basic standards.
Now as a Christian, religious person, or morally contious person would detest these conditions.
A capitalist wouldn't and (s)he sees OPPORTUNITY! Which is just another word for MONEY!! Alot of it! That is why many of US jobs are service oriented jobs. That is why even Latin America doesn't look good anymore. China is CHEAP!
Unfortunately it comes at a human sufferage cost but as any good capitalist would say....."to hell with it, it isn't my country and I don't know those people!"
I know it's a hard choice and I am sure you know the answer, financially speaking.
Unfortunately we all have to pay the mortgage!

Answer 5

Outsourcing is fine if you do it locally. To go to China, you're supporting slave labor and horrible pollution that's killing people and maiming babies. Not to mention your product will be crappy. Your city may have incentives. Contact the City Administrator or City Manager, whichever yours is called. Some companies move to nearby cities for incentives.

Answer 6

Outsourcing, by every mean, promotes cheap labour and this also results into death of the weaklings & slavery both mental and psysical.