Why do companies outsource and then want Americans to spend money with the company?

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Rebecca Hunt Profile
Rebecca Hunt answered
One of the main reasons for the emergence of outsourcing in America is the cost of labor. With labor unions in the northern part of the country driving up the price of labor and higher taxes by the American government, many companies are having to outsource jobs in order to complete with other companies around the globe. Countries such as China and India have large skilled labor pools and an educated population and more and more industries of all types are starting to take advantage of this effective and cheap labor.

Once those jobs are outsourced, those companies still want Americans to buy their products, but most of them are very secretive about the fact that they are outsourcing jobs and one of the main sales pitches heard in America over the past several years has been "made in America."

  • Businesses who are avoiding the trend

Some foreign companies  have reversed the trend and built factories and other facilities in America. Toyota has a manufacturing plant in America as they try and off-set shipping charges in their number one marketplace. But overall, the trend has been jobs being shipped from America overseas.

  • IT is a popular service to be outsourced

One of the first industries to outsource overseas was information technology. A number of jobs such as computer programming could be dome remotely by giving the person overseas access to the company computer network and for the most part, workers in the country of India have done the job at a fraction of the cost of their American counterparts. Now entire data centers are now managed overseas with India being the leader in the industry.

Outsourcing is a way many businesses stay afloat in this tough global marketplace and you can expect this trend to continue on for the foreseeable future as companies continue to search far and wide for the cheapest available labor to maximize their profits.

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