What are the positive effects to the economy of outsourcing or offshoring jobs?
The labor cost is one of the factor why companies or manufacturing industries outsource jobs and in general we think that this is a negative thing. Are there even positive effects to the economy if we outsource the jobs?
Taxes would be less. Labor cost would be much less as labor in developing countries is paid only 10% of that what is paid in home countries. In some developing countries, labor unions are weak or not working at all. Some benefits, like social security premium, are not paid to offshore labor. Multinationals employ labor three months, lay off then reemploy to override payment of benefits like Christmas bonus or 13th month pay. One employed for over four months is entitled to 13th month pay.
Many people may not want to hear this, but, outsourcing lowers the costs of products and services. Most of the things that people buy or use every day would be completely unaffordable if manufactured or supported in the US.
Why outsource? Sooner or later someone in the outsourcing country will decide to clone the work you are outsourcing and sell it direct to your customers for less. Outsource making shoes and suddenly shoe factories will spring up.
You make a good point. But that copying is likely to occur anyway. In any case, those who choose to outsource are looking to reduce current costs and meet quarterly profit goals. They are not thinking ahead.
Well Sid, there is a difference between someone copying you, and you paying someone to learn how to do things who then copies you. Ten years or so ago software development was outsourced to India. Now the firms outsourcing have Indian competitors.
There is certainly a benefit to the other country but the costs of outsourcing are passed on to the government or community in the outsourcing country.
Also while you are outsourcing and laying off other people's customers, other companies are doing the same and laying off your customers.
So overall there are no long term benefits to the economy as a whole, though individuals may prosper.
As a U.S. citizen, I am 100% against outsourcing our jobs to foreign countries. The only positive results of sending jobs to another country occur in the already overflowing pockets of greedy corporate CEOs. The average worker ultimately is forced out of work, faces losing their home, not being able to have disposable income and may eventually end up in a lower paying job...only if they can find one. Business owners and corporations should not receive tax breaks or incentives if they ship jobs that able bodied people here in the States can perform. Our standard of living is not the same as many other governments. Therefore, isn't it unpatriotic to force our citizens into menial, substandard wages in order to compete with the allure of poverty wages found in other countries? We have worker rules and regulations in this country for a reason and those before us fought long and hard to maintain a good standard of living and I'll be dipped why any REAL U.S. citizen would support outsourcing. Okay, I'm stepping off my soapbox now, but I think I made my point. I fly the American flag that is made in America for many reasons...the most important one being we have sacrificed much and are proud to be Americans.
But that is capitalism, in order for the business to have more profits, the costs should be reduced, in this case, labor? Do you believe that when a company profits, it will increase its investments and in turn gives more tax to the country?
pagesvoice: Patriotism and capitalism are incompatible. Or to put it another way, money's only loyalty is to money.
The only positive results are for the CEO's, and the corporate big wigs who get to stuff more money into their fat pockets. It's pure greed at the most disgusting level, and you can ask the millions of unemployed who's familys have suffered because of this sick behavior the same exact question.
To outsource a production implies to draw cost advantages. When a company manufactures elsewhere she pays less taxes and has a lower cost labor roughly. What do we have in return? Products with lower quality at a cheaper price. However when it comes to our BELOVED brands, we notice that their price did not vary. They are still unaffordable. What does that mean? Simply that the low cost of the production is not repercuted on the sale price and is pocketed by the multinationals.
Meanwhile US workers don't have jobs and pay the higher price for products made by American offshore companies. An absurdity. Meanwhile, those same companies dispose of governmental tax reductions and so forth.
by sandra rinck 17 years ago
If you haven't yet heard, Obama is planning on outsoursing with India. This is a red flag to me, not because I don't like India or anything like that, but come on...isn't that furthering the decline of the dollar, isn't that costing Americans jobs, isn't this a bad thing?
by Castlepaloma 10 years ago
I may not know about the most authoritative dictionary of linguistics in the world :The Bible: So Please just tell us your Pros and Cons on your Religion ? Do you have more pros than cons?Your God created the Universe. As an artist,who studies world history, and experienced lifestyle of an artist....
by N. Ramius 15 years ago
I have a friend who tends to outsource a lot of his writing. I prefer writing my hubs myself. I'm just curious how many here actually outsource most of their hub writing? The last thread I found on this was 11 months old so I'm curious if things have changed.I figure poetry and fiction writers are...
by Misbah Sheikh 3 years ago
Please take some time to read this beautiful hub by Chitrangada Sharan in response to Brenda's word prompt, Forgiveness. Here's the link: https://hubpages.com/literature/The-Pos … orgivenessThank you so much!
by sunbrite 15 years ago
Has anyone taken Acai Berry? If so, do you feel the positive effects from it?
by ahorseback 6 years ago
*Laying off or firing thousands of US workers , ATT cuts 16,000 jobs , IBM 30,000 + to give jobs more than likely to foreign nationals who work cheaper . Where is the liberal outrage ?Or are these liber companies ?*Breitbart
Copyright © 2025 The Arena Media Brands, LLC and respective content providers on this website. HubPages® is a registered trademark of The Arena Platform, Inc. Other product and company names shown may be trademarks of their respective owners. The Arena Media Brands, LLC and respective content providers to this website may receive compensation for some links to products and services on this website.
Copyright © 2025 Maven Media Brands, LLC and respective owners.
As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.
For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://corp.maven.io/privacy-policy
Show DetailsNecessary | |
---|---|
HubPages Device ID | This is used to identify particular browsers or devices when the access the service, and is used for security reasons. |
Login | This is necessary to sign in to the HubPages Service. |
Google Recaptcha | This is used to prevent bots and spam. (Privacy Policy) |
Akismet | This is used to detect comment spam. (Privacy Policy) |
HubPages Google Analytics | This is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy) |
HubPages Traffic Pixel | This is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized. |
Amazon Web Services | This is a cloud services platform that we used to host our service. (Privacy Policy) |
Cloudflare | This is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy) |
Google Hosted Libraries | Javascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy) |
Features | |
---|---|
Google Custom Search | This is feature allows you to search the site. (Privacy Policy) |
Google Maps | Some articles have Google Maps embedded in them. (Privacy Policy) |
Google Charts | This is used to display charts and graphs on articles and the author center. (Privacy Policy) |
Google AdSense Host API | This service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy) |
Google YouTube | Some articles have YouTube videos embedded in them. (Privacy Policy) |
Vimeo | Some articles have Vimeo videos embedded in them. (Privacy Policy) |
Paypal | This is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy) |
Facebook Login | You can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy) |
Maven | This supports the Maven widget and search functionality. (Privacy Policy) |
Marketing | |
---|---|
Google AdSense | This is an ad network. (Privacy Policy) |
Google DoubleClick | Google provides ad serving technology and runs an ad network. (Privacy Policy) |
Index Exchange | This is an ad network. (Privacy Policy) |
Sovrn | This is an ad network. (Privacy Policy) |
Facebook Ads | This is an ad network. (Privacy Policy) |
Amazon Unified Ad Marketplace | This is an ad network. (Privacy Policy) |
AppNexus | This is an ad network. (Privacy Policy) |
Openx | This is an ad network. (Privacy Policy) |
Rubicon Project | This is an ad network. (Privacy Policy) |
TripleLift | This is an ad network. (Privacy Policy) |
Say Media | We partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy) |
Remarketing Pixels | We may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites. |
Conversion Tracking Pixels | We may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service. |
Statistics | |
---|---|
Author Google Analytics | This is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy) |
Comscore | ComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy) |
Amazon Tracking Pixel | Some articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy) |
Clicksco | This is a data management platform studying reader behavior (Privacy Policy) |