E-Commerce Times Talkback
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In recent years, as the economy has made belt-tightening a mandate for many executives, farming out work to India, Russia and other countries has become a relatively commonplace tactic for U.S.-based companies. CEOs like the cost savings, and IT departments enjoy the ability to hammer out a project on a 24/7 schedule. Sometimes, however, a company will find it is actually cheaper to keep work at home. When is a company that never sleeps the best kind?
Eventually we can just live off our own collective fat until we start coming up with new innovative ways of tapping into that growing pool of capital that had been siphoned from the local economy. Eventually, corporations that had outsourced would notice their local markets inexplicably dry up and would increasingly focus on the emerging markets that they had fostered. Just go where the money is. It might even be worthwhile to hire up some of the displaced local labour force at bargain basement prices – just to stay competitive.
I see no benefits to farming out work to other countries whatsoever. The reason is simple: the more jobs you send overseas, the more unemployment you have in the U.S. Now, I have no problem with countries like Russia, China or India building up their economies and competing with us directly. But to send jobs out of the country on a wholesale basis is going to deteriorate the economy. By the way, it's also a matter of National security. Sending our manufacturing capabilities overseas increases vulnerability.