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
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Content: Customers may band together to boycott these companies or spread negative sentiments through social media . Outsourcing Can Eliminate Jobs From the Domestic Workforce
While there is much debate as to whether or not outsourcing causes unemployment or actually adds jobs to the economy, it is obvious that it does eliminate certain kinds of work. Presumably, those workers who lose those jobs go on to get better jobs in new industries or through better training and education. Manufacturing jobs are a prime example. Today, much of what is made by American companies actually gets produced in foreign factories. While it is true that U.S. manufacturing as a contributor to gross domestic product (GDP) has not changed much, 1 ﻿ the types of manufacturing jobs in America today are not the same as they used to be. Today's U.S. factory jobs are dominated by information technology, robotics, precision machines, and engineering. The low-skilled jobs involving repetitive manual labor have been outsourced either to cheap labor abroad or to technology. As a result, entire towns and communities that relied on assembly lines and factories have become virtual ghost towns. The so-called Rust Belt is a prime example of this phenomenon.