offshore outsourcing

Discussion in 'Current Events' started by workoutsourced, Mar 26, 2009.

  1. workoutsourced
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    workoutsourced Rookie

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    What are your reviews on outsourcing in USA so post it here whether you are in favor or against them.As now a days maximum of companies are working on it what are your reviews on it.
     
  2. AssHatZombie
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    AssHatZombie Member

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    I'm against it. It will slowly suck all the money out of our country and leave our people destitute. Companies should be given incentives to employ americans.
     
  3. Againsheila
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    Againsheila Gold Member

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    Of course I'm against it, my job is now in India....I offered to go to India if I could keep my job but was told those jobs are for their citizens. We're the only country in the world that doesn't protect jobs for our people.

    I could live a lot better in India on $4.00 an hour than I can here on the less than $9 an hour they were paying me after they cut my pay so the airline could stay in business.
     
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  4. editec
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    editec Mr. Forgot-it-All

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    Bad idea for America...obviously.

    Good for the superwealthy? also obvious
     
  5. Indiana Oracle
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    Indiana Oracle The Truth is Hard to Find

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    Most of my career has been in the enterprise application software business and management consulting. All the software firms were either public or ran themselves under that model. Those outside the software business were almost all publicly held.

    The Earnings Aspect

    Almost without exception, all companies have normal on-going sales and profit growth pressures. A large part of stock value and the perceived value of executive stewardship rises and falls on corporate earnings (basically, sales-cost). Shareholders/investors look for steady to increasing earnings quarter to quarter. This is the norm with all outside investor-based enterprises. People do not want to invest in company that is not performing.

    Some companies and industries have direct cost of sales pressure from offshore, low-cost competitors. Basically if they do not respond in kind, they will be out of business. The now defunct US textile industry is one obvious example. Hyundai vs. GM is another.

    There are other reasons why an industry can find itself under abnormal earnings pressure. Common among these are the maturation of their products, industry, or market niche (most companies have either no product/market 'moat' or a narrow one). Obviously, an economic recession is another as is a change in the competitive landscape.

    Is Personnel Outsourcing Justified?

    If a company must lower cost to survive, yes. Otherwise, they will cease to exist.

    If a company decides to lower cost to maintain a track record of earnings growth, that is a judgment call. In my experience it is too easily taken by executives whose primary driver is personal enrichment. Have seen this many times and even overseen the execution of such actions.

    Should we do something to restrict it? I believe we should devise some way to reduce outsourcing as a reflexive action taken by corporate executives. But doing so will be tricky. Btw, I am a firm capitalist.

    Legally Restrict Non-Emergency Outsourcing?

    When an enterprise is not competing effectively and their earnings are falling as a result, they want to increase sales and/or lower costs. There are many ways to accomplish this. Outsourcing non-critical activities to lower cost is one. Others are buying market share or products via acquisition, replacing non-performing people, marketing initiatives, etc.

    If outsourcing is going to be legally restricted, a company will need to prove that it must outsource in order to survive and that other alternatives have been exhausted.

    Who decides this, and how it is decided (less problematic), are the big questions. Let’s focus on the who.

    There is no objective (vs. emotional, idealistic or misguided) reason for any citizen of our country to trust an economic decision of any importance to Washington.

    The men there are just as fallible as everyone else, are politically driven with an eye on their own enrichment, and have a stunningly consistent track record of failure when it comes to economic issues. Party affiliation and federal agency have not been differentiators of any great note.

    The courts are also made up of lawyers who are generally ignorant of economic and business matters. Their track record is marginally better than Washington’s, but that is not saying much.

    Is there another way? Practically speaking, I do not believe so. There will have to be rules, and some agency in Washington will be charged with their enforcement.
     
  6. Xenophon
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    Xenophon Gone and forgotten

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    Want to end it?

    Break up unions and revoke labor laws.

    That is teh only way to stop it, otherwise, learn to live with it.
     
  7. elvis
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    elvis BANNED Supporting Member

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    They have to go bankrupt for that.
     
  8. manu1959
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    manu1959 Left Coast Isolationist

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    well we are a consumer society that wants needs and expects cheap goods and servcies.....

    i can buy 8 hrs of labour in china for less than i can here and thus make shoes or whatever for less than union american labour......

    if americans wants to pay 200 for a pair of american made shoes great.....but they want to pay as little as possible and get as much as possible.....

    so i guess you could freeze out the rest of the world and become a closed society where you only buy and sell goods and servcies within your own borders.....

    or you could have the government underwrite the cost differential so that an american made 200 dollar pair of shoes would only cost 100 .....

    that is what china and korea do they underwrite their undustries.....

    so when you say give companies an incentive not to outsource that is what you want to do.....

    all that said....i wish we would outsource our foreign aid and all our foreign military spending to middle america and spend all those american tax dollars on americans.....

    lets get our housee in order and leave the rest of the world to fend for itself for awhile....
     
  9. Againsheila
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    Againsheila Gold Member

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    Yeah, let's go back to 18 hour day, 6 day workweeks with child labor.
     
  10. sealybobo
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    sealybobo Diamond Member

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    Are you new? Welcome. I hope you are against outsourcing so I see people who are in favor of it try to argue with you.

    I want to bring back enough jobs that it isn't hurting our economy. Sure we are going to outsource some of the work, but we clearly sent too much out.

    And I want to bring enough back so that wages for the middle class go back up and unemployment goes back to normal.

    My brother is a VP for an auto supplier. He deals with outsourcing to china, brazil, all over the world.

    He says we should have a 70% rule. It is ok as long as 70% of the product is "manufactured" in America.
     

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