Title: The Unintended Consequences of Outsourcing
Headings: The Unintended Consequences of Outsourcing
The Unintended Consequences of Outsourcing
Outsourcing Lowers Barriers to Entry and Increases Competition
Outsourcing Erodes Company Loyalty
Outsourcing Can Eliminate Jobs From the Domestic Workforce
Outsourcing Affects Insourced Countries
The Bottom Line
Article Sources

Content: People may be enticed to leave agrarian or cottage industries to earn more money in a city as a call center operator. And what happens when there are no more cheap labor regions to exploit? Companies may then turn to technology to replace workers causing unemployment of unskilled labor abroad as well as at home. The influx of investment from abroad, especially for manufacturing, can also lead to a glut of factories that spit out pollution and carbon dioxide into the atmosphere, negatively affecting the health of workers and nearby communities. To try to offset the increase in pollution, China is planning to institute a national emissions trading system, whereby CO2 credits can be traded with other countries. 4 ﻿
The Bottom Line
Outsourcing is a good business strategy for companies seeking a competitive edge in finding low-cost labor. This allows these companies to boost profits and pass lower costs on to consumers. Outsourcing also has a number of unintended consequences such as lowering barriers to entry and increasing the level of competition a company has. It also has effects on brand loyalty and satisfaction; both for a company's employees and its customers.