Outsourcing Is The Result Of Fiscal Imbalance And Can Not Be Reversed!

More responses are pouring in for “My Single Biggest Reason Why Outsourcing Shouldn't Be Opposed”. In case you haven’t listed your reason, do it now. Below are the compelling arguments for why outsourcing shouldn't be opposed.

"The real crux of the matter stems from two (2) fundamental root causes; efficiency gains produced by automation going back to the late 1960s/early 1970s and the lack of due care exercised by Western buyer governments.

In respect to the latter (governments) the quest for world trade had with it many related circumstances that created a fiscal imbalance. These circumstances include labor laws, escalation of organized labor costs (even when secondary as suppliers to other commerce sectors), profit taking & demands by investors and the erosion of capitalization. It just so happens that the use of others, in providing a much needed service at a lower cost, has caused outsourcing to be the salvation and not the reason why jobs are lost. Had everything been reversed, people played within their borders (or at least in regions) the possibility of going abroad might never had been what it is today. Only the largest companies would have ventured into this arena and the smaller concerns would have remained entrenched in self-care." - Jerry E. Durant,   Chairman Emeritus,  The International Institute for Outsource Management

"In my view, the biggest single reason why outsourcing shouldn't be opposed goes back to one of the most fundamental arguments for outsourcing, that a business should focus its efforts on its core business function. The philosophy is that this leads to improved competitiveness, best-in-class solutions, retention and growth of market share. To do so it engages experts whose core business function (whose specialism) is support services so that it gets the best possible ...support.

The anti outsourcing sentiment in the US is being fuelled by the disastrously (some would argue deliberately) inept misuse of the term "outsourcing" to describe the transfer of work outside the US. The fact is that outsourcing can mean that folks based on ones own site work for a service provider, in a different US state etc.

It' s an entirely different question, and one that's being ignored, whether the use of low cost delivery locations is a bad thing. The North American consumer paradise has been built on goods manufactured in Asia, and that's a stone that the politicians don't dare lift during an election, hence the less risky attack on "outsourcing".-  Nick Davies,    Sourcing Adviser at Source