Friday, April 22, 2005

Outsourcing – Effects on American Economy

There is a lot of focus being drawn on the offshore outsourcing. Numerous discussions are being carried on this topic and its effect on the American Economy. There has been a trend in America to offshore whatever product to a cheaper labor outside America. This has affected not only the industrial lives of people in America but also their personal lives. The effect of outsourcing can be seen from a scale software and hardware manufacturers to high tech products. Outsourcing at its current growth will only become a larger issue in the coming future.
Earlier it was felt that only the rusty belt of jobs were being outsourced but now even the high tech jobs are not safe from the stigma of outsourcing. The effects of outsourcing are being felt from manufacturing to engineering and software design positions.

It can not be attributed that the industry people are on their own interested in getting the work outsourced but the Corporations are under constant pressure from their investors to increase profits. One of the possible ways the corporations find to increase the profits is getting work done from a cheaper labor. The corporations also get other benefits working with the outsourced employees as they have not to deal directly with the employees for their problems.

Another advantage that these outsourcing companies is that the countries to which these companies outsource don’t happen to have stringent law and measures. Also the companies find it better to have the product manufactured in the same place where they have to sell the same. Moreover these companies don’t want to be left behind in the race for doing anything new, as the trend of moving offshore is growing day by day. If we think in a proper way, the different alternates are available for the reduction of the cost. These can be stated as below:
1) Identifying and removing the inefficient Processes: The main target for improving the profit has been the people working in the organization, but instead the focus should be moved to identifying the processes which are not productive and should be removed.
2) Understanding the customer needs: The working of the company should be designed in a way that it is useful to the customer and the company gets close to the customer and understand their needs. This can be beneficial as we won’t give our customers a chance to look else where.
3) Improving the Quality: More stress should be laid on improving the quality of the product, only a superior quality product can win over the competitors.
4) Getting Responsible: We should aim to be responsible and give the customer a service for the work required. The customer service should be kept at the top priority.
6) Be Innovative: We should try to be innovative and deliver new products to the customers before our competitor does. Keep one step ahead of counterfeiters by designing better and faster and adding more value to your products.