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: Each part of a business is effectively subcontracted out, and that means that any new company can hire those same contractors (or competitors of those subcontractors) and produce identical items for around the same cost as the big players. Outsourcing Erodes Company Loyalty
If a worker knows that their job may be outsourced to cheaper foreign labor at any given moment, they may lose confidence in their employer and become discouraged. As outsourcing has grown from unskilled jobs to include administrative and intellectual positions, even managerial level employees cannot be certain that their jobs are safe and secure. Workplace satisfaction and worker productivity can be negatively impacted. Additionally, if an employee, or group of employees, decides that they are being treated unfairly or are being underpaid, they can leave to start their own company in direct competition with their former employer. This possibility is more likely than ever before because of outsourcing's lower barriers to entry. Consumers can also be turned off by outsourcing. The most ubiquitous case is the outsourcing of customer support or technical support to places like India. When customers hear a foreign accent answer their call to an American company, they may lose trust in the company and could even blame that company for eliminating American jobs. The situation becomes even more sensitive when customers have to share medical or financial information with strangers overseas.