Outsourcing And Its Effects On The Economy Essay

1745 Words Nov 27th, 2016 7 Pages
Often a heated topic among business professionals as well as hard workers fearful of losing their jobs, outsourcing is big issue portrayed in the media. Outsourcing is the act of having people in foreign countries perform work that could be or once was completed by the home country. Although people argue that the labor is cheaper, it leaves others with a sense of dread as they fear unemployment and the effects it has on the economy. To begin with, it is important to understand why companies turn to outsourcing certain departments. First, the leading justification for outsourcing is the money businesses save. Even though many people may believe that it is just the reduced salary causing the business to save money, there are other factors involved. Any time a new employee is hired, they must participate in training, and if that person doesn’t work out, that company loses out on a large sum of money. Not only did they spend the money to train someone that did not stay, but now they will have to pay to train the next person (Dunne, n.d.). Besides training, it would be less benefits the company would have to provide and hopefully can issue better benefits to current employees. Although the cost-effectiveness varies between corporations, there is often some benefits seen. Recent research done in 2015-2016 shows the percentage of companies that claim outsourcing has either reduced their cost or stayed the same. Ninety-two percent agreed to the statement when outsourcing their…

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