Is Outsourcing and Offshoring Good Or Bad For American Firms?

There are a lot of misconceptions that surround jobsexpected salary for such jobs, which offshore
being outsourced from American firms and whether orworkers, in contrast, gladly accept.
not it's good or bad for their national cause. PresidentThe exclusion from the $5000 in tax breaks offered to
Obama, shouldering the daunting task of leading hisAmerican firms that keep from outsourcing and
nation out of the worst economic crisis since the Greatoffshoring is a small price to pay for major American
Depression, has decided to provide American firmsfirms such as Microsoft, who employ as much as
with incentives to limit outsourcing and offshoring150,000 workers abroad. The reality that the reason
operations.these firms outsource high-end jobs not just for
Stop outsourcing jobs to Third World countries andcost-efficiency, but for quality performance and global
give them to Americans who need them instead;competitiveness, may be a hard pill to swallow for
sounds like a reasonable enough plan doesn't it? AAmericans. The boost in BPO revenue in Third World
closer look at the facts, however, and Obama himselfcountries such as the Philippines is due to a shift
will admit that his plan is not in his nation's best interest.towards outsourcing more highly specialized jobs in an
The question of outsourcing and offshoring being goodincreasingly wide array of disciplines; otherwise known
or bad for American firms is something few canas Knowledge Process Outsourcing (KPO).
afford to ponder amidst their fight for survival.Loss of jobs due to outsourcing and offshoring
For many American firms under the credit crunch, ifrepresents less than 1% of all American jobs lost per
the question is whether or not outsourcing andquarter. Practicality needs to be put ahead of any sort
offshoring will help them stay afloat, the answer is aof false sense of patriotism and, worse still,
resounding "yes". The only difference the recessiondiscrimination towards fellow workforces in today's
has made to many of America's leading firms is thatglobalized economy. The success and rapid
outsourcing to highly skilled professionals at a low costdevelopment of the BPO industry, regardless of it
is now more of a necessity than a luxury. Moreover,being good or bad for American firms, is a clear
the US simply does not have enough qualifiedindication that offshore workers can hack it just as
graduates in major BPO sectors such as IT to fill thewell, if not better.
void; fewer still would agree to a fraction of the