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Thread: Myths about outsourcing in general

  1. #11
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    Default Re: Myths about outsourcing in general

    Fact is outsourcing provides even more business opportunities for business-minded people. There are people I've heard who make huge profits from outsourcing. They act as the middleman. They get hired by someone who's looking to outsource some work and they the middlemen] hire others and pay them to do the work. So these guys hardly do any work but make some decent profits anyway. Outsourcing therefore doesn't necessarily translate to lost jobs.

  2. #12
    Diamond Member Corzhens's Avatar
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    Default Re: Myths about outsourcing in general

    Quote Originally Posted by Vampa View Post
    Fact is outsourcing provides even more business opportunities for business-minded people. There are people I've heard who make huge profits from outsourcing. They act as the middleman. They get hired by someone who's looking to outsource some work and they the middlemen] hire others and pay them to do the work. So these guys hardly do any work but make some decent profits anyway. Outsourcing therefore doesn't necessarily translate to lost jobs.
    I agree with you that outsourcing doesn't cause lost jobs. However, it can cause displacement of workers in a place (or a country) because the jobs are taken by the outsourcing company. Take for example the call centers in the US and Europe that contract their jobs in Asia, their local employment is somehow affected since thousands of jobs are given to the Asians. I've heard that China is also encouraging their people to learn good English so they can compete with Indians and Filipinos in the call center industry. There are far too many Chinese college graduates who have no jobs and are looking around for outsourcing companies.

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    Gold Member nytegeek's Avatar
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    Default Re: Myths about outsourcing in general

    In the USA we hear a lot of noise about how outsourcing creates jobs overseas that we need here. What gets ignored is some companies choose to outsource because the jobs are hard to fill here. Americans don't want the kinds of jobs being outsourced, or at least not enough of them do. What some people don't realize is that for an opportunity to be offered here there needs to be enough real interest in it.

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    Bronze Member joshposh's Avatar
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    Default Re: Myths about outsourcing in general

    The bottom line is that businesses want to make money. If they need to outsource it to other parts of the world to keep profits up and keep their business running, then that is their prerogative. It will always be about self preservation. As earlier stated, Americans want jobs that they are qualified for or went to school for, so some of these manufacturing and call center jobs aren't the most desired. That's why they get moved elsewhere to places that want the jobs. America can do better economically, but people just need to get off their high horses and stop living off of the system.

  5. #15
    Gold Member nytegeek's Avatar
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    Default Re: Myths about outsourcing in general

    Quote Originally Posted by joshposh View Post
    The bottom line is that businesses want to make money. If they need to outsource it to other parts of the world to keep profits up and keep their business running, then that is their prerogative. It will always be about self preservation. As earlier stated, Americans want jobs that they are qualified for or went to school for, so some of these manufacturing and call center jobs aren't the most desired. That's why they get moved elsewhere to places that want the jobs. America can do better economically, but people just need to get off their high horses and stop living off of the system.
    It isn't always their prerogative. I don't know why you would think it was. It depends on international law as established by treaty based upon the business origin and the destination o f potential outsourcing. People actually do have a voice in this process, it isn't just up to a company. It may be a case of stopping an action or reversing it, but it isn't just up to a company and it shouldn't be.

  6. #16
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    Default Re: Myths about outsourcing in general

    Kudos for dispelling some of the myths in your list.

    The truth is that whether you like outsourcing or not, it is a necessity to survive and therefore it is only a matter of time before more companies outsource their jobs.

    One of the main misconceptions which I have often come across when it comes to outsourcing is that outsourcing leads to quality degradation, which I have personally experienced is false.

    Sure enough if you do not have quality checks, quality would decrease but if you are able to provide strict quality guidelines to your manufacturer you can be sure that their would be no quality degradation.

  7. #17
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    Default Re: Myths about outsourcing in general

    Outsourcing is not concerned with the wellbeing of workers, whether from the places it has moved from or to the target location it is moving to. The ultimate consideration is the profit margin.
    The reason for the move in most cases, is to eliminate reasonable worker compensation and fringe benefits. In some instances, location advantage may be a factor but higher profitability is usually the dominant factor. This is the reason why many companies may suddenly pack up and leave an area where they were able already enjoying the low wage scenario to move to a location where they are able to enjoy even lower wage costs. In some instances to places where there is involvement in child labor.

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    Default Re: Myths about outsourcing in general

    Quote Originally Posted by explorerx7 View Post
    Outsourcing is not concerned with the wellbeing of workers, whether from the places it has moved from or to the target location it is moving to. The ultimate consideration is the profit margin.
    The reason for the move in most cases, is to eliminate reasonable worker compensation and fringe benefits. In some instances, location advantage may be a factor but higher profitability is usually the dominant factor. This is the reason why many companies may suddenly pack up and leave an area where they were able already enjoying the low wage scenario to move to a location where they are able to enjoy even lower wage costs. In some instances to places where there is involvement in child labor.
    Sadly this is true which is why I always say that it is the government's responsibility to keep their citizens from abuse while at the same time still making it attractive for companies to want to hire them. It is a tough thing to balance as if there are too much restrictions and the standards are too high the people will lose on the opportunity and if if they are too low then the company will take as much advantage of that as possible or else just move onto somewhere else that will provide such a thing. Very delicate balance but unless the people have something unique to offer then someone else will just fill the spot.

  10. #19
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    Default Re: Myths about outsourcing in general

    I don't believe in the notion of the unfettered free market and it is true that a lot of outsourcing involves saving money without having to deal with workers who expect a certain standard of living. However, the standard viewpoint of outsourcing as something that the big nasty corporations are doing to destroy American workers and exploit third world labor is way to simplistic and often false.

    Outsourcing creates many jobs, usually more highly skilled jobs which are in demand. I do remember being frustrated when a fairly standard data entry job disappeared because the company wanted to pay Indian workers $2/hour for the same work, but the people who made the deal and the managers who dealt with the language and cultural differences probably made up much of the difference.

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