Outsourcing has been given a bad name by the transformation of U.S. businesses over the past several years. “Send jobs abroad because labor is cheaper” is the mantra. Using cost as the sole justification for doing something often has the opposite effect of the one desired.
Take manufacturing for example. Scores of companies produce their goods in China and re-import them for sale in the U.S. Because outsourced manufacturing has been done on such a large scale, U.S. wages are driven down. Environmental effects are multiplied by the need to ship raw materials and finished product over long distances. Some firms make enormous profits in the arrangement, but a larger number of people and companies have their lives degraded.
Outsourcing done smartly has benefits that far outweigh the drawbacks. Businesses get the resources they need, when they need them at an affordable price. Outsourcing can be done locally, regionally or nationally. It does not have to mean sending your business oversees. How does all this relate to your business? Read my next blog to find out.
