| With the changing global economy, and the excessive | | | | turn promote greater economic growth. The drive for |
| costs associated with keeping an in-house staff for | | | | lower prices and the increased demands of |
| secondary functions, many of today's small businesses | | | | consumers for businesses to compete is one of the |
| and corporations are outsourcing the production of | | | | largest factors that drive many corporations to move |
| goods and services to foreign firms in an effort to cut | | | | production to offshore facilities. |
| costs. While many critics argue that this can devastate | | | | However, there are also many disadvantages to |
| local economies by cutting jobs at home, success is | | | | offshore outsourcing as well. For workers in the US, a |
| often a balancing act between meeting customer and | | | | number of jobs are lost permanently, many workers |
| community demands and also maximizing profits. Many | | | | have to gain new skills, and wages decrease due to |
| of today's largest corporations in the US are now | | | | the competitiveness of overseas workers. In essence, |
| outsourcing production of their goods to foreign | | | | American workers are now forced to compete on a |
| countries where there are fewer regulations and | | | | global level, as are businesses. |
| cheaper labor. In addition, a number of small businesses | | | | For these large corporations, one of the downfalls of |
| also outsource services such as administrative | | | | outsourcing that has the potential to do the most |
| functions to a number of local and foreign firms that | | | | damage is decreased quality control, minimal product |
| often compete for pay. | | | | development and improvement, and lower quality |
| While there are certainly ethical decisions to be made | | | | materials and workmanship that go into products. In the |
| for many of these businesses, there are a number of | | | | US, and in many other countries as well, poor quality |
| pros and cons to offshore outsourcing. While many | | | | products have the potential for increased liability and |
| criticize the act of outsourcing production by large | | | | lawsuits, as well as exposure by consumers to certain |
| corporations, there are a number of US firms that | | | | materials that can be deadly. One example of this is |
| continue to provide outsourcing and remote service | | | | the lead toy recall by many leading American toy |
| jobs for small businesses in the US that cannot afford | | | | manufacturers in late 2007 and early 2008, which had |
| to maintain a large full time staff and also foreign | | | | a dramatic effect not only on consumers and |
| businesses as well. | | | | concerned parents, but also the toy industry. |
| One of the biggest benefits of global outsourcing is | | | | Another one of the biggest disadvantages of offshore |
| that it allows for increased efficiency within larger | | | | outsourcing that is particularly detrimental to smaller |
| organizations. Although a number of less-skilled jobs | | | | companies, is the communication barrier that often |
| are often lost to overseas production facilities, the | | | | exists between foreign countries of production where |
| increased efficiency allows these organizations to | | | | another language is spoken and companies in other |
| create more skilled positions and implement improved | | | | countries that speak a different native language. |
| strategic plans. In addition, the benefit for many | | | | However, increases in technology are working to |
| consumers is that they can enjoy decreased prices | | | | reduce this barrier and make global communication |
| created by increased levels of efficiency, which can in | | | | possible for everyone. |