OUTSOURCING CONTROL

A good deal of controversy has taken place in recent years in the U.S. on the impact of foreign outsourcing. It can be a touchy issue and one which is worthwhile of discussion. In this particular article I really hope to eliminate a number of the common misconceptions on both sides of the controversy. If we do this we’ll be able to see clearly and make wise decisions about whether outsourcing is desirable for our own unique context (and there’s not one right answer to that question).

It takes our jobs away. The most typical argument in opposition to offshore outsourcing is that it takes jobs away from normal Americans. Now this is a genuine concern, especially considering the difficult economic recession people in America have been through in recent years. The issue with this argument though is that it fails to take into consideration the net result of what actually happens when those jobs go overseas. In the long run outsourcing actually forces Americans to do what Americans do best, innovate and create. The United States has thrived partly due to it’s remarkable ability to innovate. So when simple computer-programming jobs begin going abroad, it makes the computer programming workforce figure out new methods to thrive in the computer industry. They’re forced to develop new industries and subsequently, new jobs. The short-term impact of job loss in the U.S. is offset by the creation of new market sectors and the jobs that are created by those new industries. Also , it is offset by the opportunity it provides to competent and bright people that are trapped in poverty simply because they happened to have been born in a third-world country. The reality is outsourcing typically helps empower people out of poverty. It is a positive for the U.S. and a positive for poorer nations.

It minimizes quality . Another typical argument is that overseas outsourcing degrades the quality of the products or services that are being outsourced. There are some valid concerns in this area. We have all been the victim of annoying customer service phone calls with somebody in some other country whose English accent was completely unintelligible. This is one good example of outsourcing gone wrong. Lots of organizations have too quickly risked their reputation among their customers for the purpose of lowering costs. This is risky. But there are many other good examples of outsourcing that don’t result in a reduction in quality. In fact the opposite is true. You can end up getting a higher quality given that your dollar goes a whole lot farther. You can contract the best person because they are still cheaper than the average professional in the U.S. performing the same thing.

The Three-Question Test. In the end, outsourcing can be a win-win if it is done in an appropriate way and in the appropriate areas. Although customer care offshore outsourcing could certainly be detrimental to a organization’s name, working with a graphic design company to create outstanding quality graphic design work is not. In the end you need to ask yourself 3 questions: 1) Can I outsource this particular service without jeopardizing my reputation or my company’s reputation? 2) Can I achieve the same or increased quality products or services at a lesser cost by simply outsourcing it? 3) Does this particular sort of outsourcing offer opportunity to individuals in a lot more challenging economic situation than the ordinary American rather than exploit them?

If the response to these three questions is a “yes”, then perhaps outsourcing is the best way to go in your case. If the reply to any of them is a “no,” then you’re better off to not outsource it.

Read this article for more tips for becoming a more effective business.

Mtn Jim’s comment:  Maybe you were surprised about possible ethical considerations of outsourcing?  Yaro Starak elaborates very well on this in his post at Is Outsourcing Exploitation?