Outsourcing impact on us is one of the state’s current struggles with unemployment. Outsourcing is when a business hires another company e.g. any of the outsourcing IT services in Islamabad so it can reap the benefits of cheap labor and maximizing their profits. Today, America's unemployment rate is 5.5% which has decreased since the great recession but will not stay that way if companies continue to outsource.
As a part of outsourcing impact on us hundreds of successful companies across the country use this channel to cut costs, and more importantly increase their profits. However, there is a great deal of confusion surrounding the term "outsourcing." Simply put, outsourcing occurs when one company contracts with another company overseas to provide some sort of product or service. For example, a company may outsource their I.T. department to cut down on their labor costs to an outsourcing IT services in Islamabad. However, when a company builds a factory or store in another country and hires employees in that country, it is not necessarily considered outsourcing. In this circumstance the company may be trying to expand their market in order to increase their profits. The problem occurs when companies only look at the positive effects of outsourcing, and do not consider the negative impact it may have.
Out of all the countries in the world, the United States has the most companies that outsource to foreign countries. As technology advances, transporting products to outside sources has become a much more simple and affordable process. Outsourcing began as a harmless act of sending work overseas to exclusive firms. As an impact of outsourcing on us it has become one of the leading causes of unemployment among Americans. Not only does outsourcing affect the unemployed citizens of the United States, but it also affects the American consumers. With companies having their products made with lower quality materials overseas, the consumers know they are paying for a lower quality product. This results in a decrease in customer satisfaction. Even though companies may be receiving large profits for these low quality products, the decrease in customer satisfaction will eventually catch up to them. Today, consumers would much rather pay for something that they know is of high quality. Nonetheless, with the majority of American companies outsourcing, consumers come to expect a less than quality product.
Companies that are based overseas tend to lose customer loyalty because consumers prefer to buy from a domestic provider. Outsourcing affects the reputation of the company in other ways as well. For example, some companies choose to outsource production to countries where there are less strict child labor laws. Child labor activists have attacked companies, like Nike, who are known to use child labor in foreign countries to make their products. Even though Nike has generated substantial profits over the years using this strategy, they are now starting to face the repercussions of that decision.
An outsourcing impact on us can be denounced through the fact that it takes a major toll on state’s workforce. Because outsourcing is no big secret, American workers know that they are competing with foreign workforce on a daily basis. Having the fear of a potential layoff can have a negative impact on a worker's morale. Not having any job security is very demoralizing and can often affect an employee's work ethic. For these employees, being loyal to a company is not as important.
(The author last posted the article for Best Hotel Management System from Software House in Pakistan)
The author is associated with Top Outsourcing IT Services in Islamabad.
Out of all the countries in the world, the United States has the most companies that outsource to foreign countries. As technology advances, transporting products to outside sources has become a much more simple and affordable process. Outsourcing began as a harmless act of sending work overseas to exclusive firms. As an impact of outsourcing on us it has become one of the leading causes of unemployment among Americans. Not only does outsourcing affect the unemployed citizens of the United States, but it also affects the American consumers. With companies having their products made with lower quality materials overseas, the consumers know they are paying for a lower quality product. This results in a decrease in customer satisfaction. Even though companies may be receiving large profits for these low quality products, the decrease in customer satisfaction will eventually catch up to them. Today, consumers would much rather pay for something that they know is of high quality. Nonetheless, with the majority of American companies outsourcing, consumers come to expect a less than quality product.
Companies that are based overseas tend to lose customer loyalty because consumers prefer to buy from a domestic provider. Outsourcing affects the reputation of the company in other ways as well. For example, some companies choose to outsource production to countries where there are less strict child labor laws. Child labor activists have attacked companies, like Nike, who are known to use child labor in foreign countries to make their products. Even though Nike has generated substantial profits over the years using this strategy, they are now starting to face the repercussions of that decision.
An outsourcing impact on us can be denounced through the fact that it takes a major toll on state’s workforce. Because outsourcing is no big secret, American workers know that they are competing with foreign workforce on a daily basis. Having the fear of a potential layoff can have a negative impact on a worker's morale. Not having any job security is very demoralizing and can often affect an employee's work ethic. For these employees, being loyal to a company is not as important.
(The author last posted the article for Best Hotel Management System from Software House in Pakistan)
The author is associated with Top Outsourcing IT Services in Islamabad.
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