Offshore Outsourcing Jonathan Zaun as America Continues

Offshore Outsourcing

Jonathan Zaun

As America continues to struggle through a recession that was in many ways self inflicted, today's leading economic minds are debating the issue of offshore outsourcing with more interest than ever before. While politicians and labor unions claim that offshore outsourcing weakens the nation's economy, this view is biased and shortsighted, as it fails to take into account the many benefits derived from the transfer of jobs overseas. In order to remain competitive in an ever evolving global market, America should take advantage of offshore outsourcing and utilize the practice as an effective means to strengthen and streamline its workforce. Innovation has always been a cornerstone of American economic superiority and offshore outsourcing is a reliable method of spurring employees both at home and abroad to adapt, improve and expand their skill sets. A profitable exchange of talented, educated employees from one country to another can also form the foundation for lasting partnerships, shoring up alliances in regions of the world where the United States is desperately seeking to rebuild its reputation. Finally, when corporations are able to lower their expenses by moving a segment of their operations offshore, the benefits are traditionally passed along to the average consumer in the form of lower costs. When examined objectively it becomes clear that, rather than posing a threat to America's financial future, offshore outsourcing remains one of the most promising avenues to the nation's economic recovery.

During every historical era defined by American economic supremacy, from the Industrial Revolution to the dot.com boom, the innovative spirit and creative drive of the United States have always been at the forefront. Democracy and free market capitalism have combined to create an environment in which the best and brightest minds, the most ambitious entrepreneurial spirits and the greatest risk takers are invariably rewarded for their bold ideas. When a practice such as offshore outsourcing is restricted, through government intervention or less invasive means, the resulting economic environment will be severely limited in its capacity for growth and development. The globalization of the job market through offshore outsourcing effectively prevents the domestic economy from stagnating, while also integrating the U.S. financial system with a worldwide network of future trading partners. Corporate executives and business leaders have consistently stated that offshore outsourcing is a viable way of reducing overhead costs, allowing for greater investment in innovation, research and development. As part of a panel of business experts convened in 2004 to discuss the impact of offshore outsourcing, Chip Greenlee, vice president of marketing solutions for Hewlitt-Packard Co., summed up the situation by observing that "outsourcing takes a lot of the cost out of the equation and leaves more room for investment and innovation (Parry 1)." Offshore outsourcing is the most direct way for a company to lower the cost of doing business, and when companies are financially free to explore new ideas and potentially groundbreaking ventures, the market is invariably enriched by the creativity of an enlivened workforce.

The phenomenon of globalization has been hastened by the rapid technological advances of the last 20 years, and America faces a brave new world as a new decade dawns. Uprisings in the Middle East and Northern Africa have shaken the global oil markets, extended wars in two far-flung locales have drained the nation's treasury and the U.S. faces increasing pressure from a growing China. In this time of uncertainty for the country, Americans should view offshore outsourcing as an effective method of bolstering national security and building productive relationships with previously hostile nations. The great economic benefits to be reaped by countries like India, Pakistan, Indonesia, and Mexico, all of which are primary outsourcing partners, will serve to soften the anger and resentment that many citizens of these countries feel towards America after the Bush administration's hard-line approach to foreign relations. The developmental disparity between countries that enjoy American-based, outsourced employment and those that do not is striking. While young Indians diligently study English to pursue lucrative call-center positions, youth in Iran and Palestine are repressed and increasingly radicalized and turned towards violence. Thomas L. Friedman, a respected columnist for the New York Times, wrote in a 2004 piece that "there is more to outsourcing than just economics. There's also geopolitics," while concluding that offshore outsourcing serves to "make not only a more prosperous world, but a safer world for our own 20-year-olds (Friedman 2)." Simply put, the spread of American ideals like freedom and equality can be achieved far more easily by outsourcing U.S. jobs overseas than by armed invasions and prolonged occupations.

The telephone and computer industries have long been leading proponents of offshore outsourcing, and during the last 20 years of astonishing technological advancement the cost of high-end items like smartphones and laptop computers has continually fallen. This symmetry between outsourcing and price reduction is no coincidence; offshore outsourcing directly affects the health and vibrancy of a particular industry and allows businesses to create improved products that cost consumers less. In the current economic landscape, this ability of American corporations to offer their customers high-value goods for a devalued dollar is crucial. Offshore outsourcing provides U.S. companies the flexibility necessary to survive a historic recession and emerge as more efficient and more profitable operations. Lower costs for the average consumer allow people to spend more freely, stimulating the slumbering economy and providing businesses with increased capital. Offshore outsourcing is an essential component of this cycle of financial growth and America must once again take the lead, by acknowledging and accepting the many benefits provided by a free flow of jobs.