The Advantages of Sending Jobs Overseas

"Outsourcing does not reduce the entire number of jobs in America." It's hard to find many men and women who agree with statement produced by Robert Reich, former President Bill Clinton's labor secretary. He goes on to state, "If other nations can do something more economical we ought to let them do it, and focus on what we can do best." Now's economy and the large numbers of out-of-work taxpayers in the U.S. makes moving sending jobs abroad more challenging to do but a few advantages still exist.

NAFTA

The arrangements reduced or eliminated import taxation, permitting cheap foreign-made imports to undercut the prices of American-made products. The high price of labour in the U.S. compelled many companies to move abroad in order to stay in operation. Moving overseas was the only way U.S. manufacturing companies could compete with labour costs and product pricing. The accession of taxation benefits was the final determining factor for many businesses.

Internet Revolution

Jobs such as data entry, billing, accounting, processing of insurance claims and loan applications as well as processing U.S. income tax returns are being done by cheaper paid workers abroad. Since 2004, the outsourcing of knowledge-based services along with high-tech and professional occupations has migrated overseas too. Including jobs in software programming, paralegal work, financial investment study, x-ray and CAT-scan analysis and drug testing. The benefits of sending skilled service jobs overseas are enormous cost savings. In 2004, a U.S.-based software developer was paid an average annual salary of $70,000, whereas exactly the exact same job done by a programmer in India paid the employee only $8,000 each year.

India

Rather than moving the entire company abroad, some elect to move specific sections or services overseas to obtain benefits just other countries can provide. India has become the world's outsourcing hub, concentrated on highly trained workers. Its large base of technically skilled people enables India to create quality goods at substantially lower prices. People of India are highly educated, and the country has the maximum number of English speakers alongside America. India has among the most stable governments in the world. Its government is centered on IT growth and has a promising investment possible, allowing companies from different countries to profit from high returns on their investments.

Other Benefits

U.S. companies send jobs abroad in an attempt to maximize profit. The country that offers a company the most advantages wins, so to speak. Sending tedious jobs abroad helps companies focus their highly paid employees on core business purposes. Sending jobs overseas also can help to level out seasonal fluctuations and peak staffing problems. It increases innovation by not having to chase after it. It reduces risk and enables direction keep management of tactical decision-making processes. Fewer and less strict laws of other nations make running a business outside the U.S. much easier.