Problem
Prior to beginning work on this discussion forum, read the articles Trickle of Jobs Returning to U.S. Shores Could Soon Become a TorrentLinks to an external site. and Outsourcing Pros and Cons for Your Digital MarketingLinks to an external site., and watch David Weinstein Discusses Factors That Lead to Outsourcing.
Based on the content presented, discuss some of the pros and cons of outsourcing. Do you think many organizations are experiencing an increase or decrease in their levels of outsourcing? Why?
One must consider the outsourced product or service when weighing the benefits and drawbacks of outsourcing. The product's market is an additional consideration when manufacturing goods. Most of the time, the United States of America (U.S.) uses many goods made worldwide. Therefore, it would make more sense to manufacture goods primarily consumed in the United States; that is now because shifts in the prices of foreign labor and the tax credit for outsourcing have changed (Evans, 2014). Before these shifts, companies based in the United States were outsourcing product manufacturing to nations like China, Brazil, and Mexico.
Before these changes, outsourcing had the advantage of lowering labor costs, taxes, and regulations. The loss of American employment was one of outsourcing's drawbacks. With the reduction of outsourcing tax credits and the increase in tariffs on imported goods, U.S. lawmakers began to recognize the difficulties faced by employment in the country. These changes encouraged businesses in the United States to bring jobs back home. U.S.-based businesses have begun to reduce their outsourcing levels due to these legislative changes and the rising labor costs of developing nations that are typically used for outsourcing. In addition, outsourcing of manufactured goods has decreased due to the rise in stringent regulatory requirements placed on U.S. products over the past decade.
On the other hand, outsourcing has increased in recent years for services like customer service and telemarketing. These services have been outsourced to companies with expertise in the field by businesses in the United States. The outsourcing company will be able to concentrate more on its primary product or service (Mullich, 2013). These outsourcers have typically perfected the service being outsourced to make it available to multiple businesses.
References
a) Evans, M. (2014, February 27). Trickle Of Jobs Returning To U.S. Shores Could Soon Become A Torrent. Forbes.
b) Hardgrove, M. (2021, March 29). Outsourcing Pros And Cons For Your Digital Marketing. Forbes.