So outsourcing. As a tune in the political game this election season, we are hearing candidates talk about removing tax breaks for companies that ship jobs overseas. Apparently these CEOs and decision makers are the scum of the earth second only to people who kick puppies and hate babies. These people though are making the decisions that we discuss in class on a daily basis. Can cost efficiencies be gained by outsourcing whatever these jobs are? Is this responsibility part of the company's core competency? These are the kinds of questions that these CEOs have to use when making decisions.
They are demonized regularly but is outsourcing wrong? If I have to pay $100 for labor, taxes, regulations and shipping to get a product on the market, whereas I can make the same quality of product and have it delivered for $60 in China, this seems like a great deal. Is this approach wrong? Is there more to the equation that we are discussing? When something is outsourced, people are probably going to lose their jobs. What should a CEO do in this condition? Should the move be made anyway? Are they the devils they are painted to be even though they are just doing what they feel is necessary to keep their business running smoothly?
Please share your thoughts.
I agree with your motive of questioning the hatred of companies that outsource. When I look at the recession in America and know that Americans are hurting and lacking jobs, my first instinct is to dislike anything that moves jobs away.
ReplyDeleteBut, from the perspective from a company that is trying to make a profit, and save money in the same recession, it makes total sense. I don't see how outsourcing has become such a big controversy.
Instead, I think America should focus on ways to keep the jobs, by making a more attractive product or by some other way. Instead of assuming we have the right to all of these jobs, we should start fighting for them and create a demand for American labor and products. We need to start making the best products and providing the best services. Then the jobs will come.
I think it's just the same when they shop around for raw materials. Why all other things equal would they buy the raw materials that cost the most to be delivered to them when they can buy them for half price. Don't blame those who take advantage of what is available, I think you should blame those who make it so available cheaply.
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