David Lazarus of the Los Angeles Times, reports on the affects of outsourcing according to Steve Rochman, founder of the outsourcing company, Revotech, who claims that the process does not contribute to the decline of domestic manufacturing. By outsourcing abroad, products are manufactured for a cheaper cost, which is beneficial for smaller businesses that are having trouble competing with larger manufacturers. Rochman insists that his company allows smaller American businesses to be competitive and in turn, keep their jobs. Conversely, however, outsourcing may have adverse affects such as unavailable employment opportunities as a result of the work being done overseas for a cheaper labor and resource cost.
Although outsourcing may be beneficial to business owners who seek cheaper production costs, it invariably takes away from the employment opportunities at home. When a company outsources, the employment opportunity is taken away from potential American workers and is granted to citizens of another country. It is true that this allows smaller businesses to remain open but the number of jobs that can potentially be given to Americans is higher than the jobs maintained by outsourcing. Therefore, as far as the entire economy goes, outsourcing can be rather harmful and should be limited in order to preserve employment opportunities for the citizens of America.
However, nowadays with the recession and plummeting small businesses, it is impossible to restrict outsourcing because businesses are forced to turn to it as a result of certain products not being produced domestically. Although I do not completely agree with the philosophies of Steve Rochman, I am certain that his company does in fact aid in keeping small businesses open and until America is able to function at its potential output level, it is difficult to entirely dismiss the idea of outsourcing. What do you think?
