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RSS Lovetoread41

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3 points

Lots of great arguments have already been made here. A couple that I have not seen:

1) Outsourcing US Jobs offshore can only be good if there are new jobs being created for those displaced workers to move to. Clearly right now in our economy, we are losing jobs on a net basis, so in that environment, outsourcing US jobs cannot be good in any way shape or form if it is contributing to greater domestic unemployment, which it is right now. The impact of that includes a) a reduction in the tax revenues at the state and federal levels which is one significant reason why we have such huge deficits and have become a debtor nation to China. The state of California has such a huge deficit that very important programs including education are getting cut. How is that deficit created? It all comes back to tax revenues offset by spending. Fewer jobs means less income means less in taxes and b) more unemployment means more americans receiving unemployment assistance and other public programs which further contribute to the deficit. This is such a fundamental issue yet somehow it gets glossed over. When the economy is growing and new jobs are being created, it is not noticeable, but today it is a glaring weakness in our economic policy to allow this practice to continue unfettered.

2) Treating white collar jobs as commodities, as outsourcing does, fails to take into account the human element. Just because I might be hired to do a certain job, as an employee of a company I know that if I find ways to improve the way we do things and innovate, it will reflect positively on me and help lead the way to promotions and greater compensation. When you outsource a job offshore, you significantly diminish the potential for innovation. Despite what marketing people might tell you, the outsourcing industry performs a "lift and shift" and nothing more. They take your work and move it offshore and perform it in exactly the same way as you are doing it in the US. Couple that with 50% or greater turnover rates in places like India and what you have is a situation where nobody ever sits in the job long enough to understand it well enough to actually have an opportunity to think about ways to improve it. The liklihood that an offshore employee that has been hired to perform a specific task is going to come up with ideas for innovation are virtually nil. They don't have the same motivation or opportunity. Unless you find a way to measure and quantify the concept of innovation and then build it into your contract with the outsourcing provider, innovation is just not going to happen, which will lead to stagnation. I feel this is the leading characteristic of outsourcing white collar positions that is going to lead to a permanent deterioration of the US Economy, because innovation is what made the US economy so great. Corporate greed over maximizing short term profits through labor arbitrage will lead to long term losses that ultimately may take decades to recover from, if ever.

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