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Local Strategy–Global Benefits

Oct 9, 2014

By: Arlette Measures

So you’ve done your research, gathered all the facts, and have concluded that outsourcing select functions will ultimately benefit your business and help it to grow.

At this point, perhaps influenced by a general belief that outsourcing has a negative effect on the economy, you may find yourself with lingering doubts about whether you’re taking the right step. While you don’t want to anguish unnecessarily over the outsourcing dilemma, as a responsible member of the business community, you naturally want to consider how your decision will impact others.

A recent article in CNN Money addressed this very issue. Quoting Jay Bryson, a global economist at Wells Fargo, the article brought out that while outsourcing might initially have a somewhat negative impact locally, it ultimately does more good than harm. “In the long run it makes things more efficient,” said Bryson.

Offshoring certain functions where it makes most sense allows companies to hire local talent to fill jobs in other departments such as sales and marketing. Often, these jobs actually pay more than the ones outsourced. A paper by the Centre for Economic Performance noted that outsourcing has ‘an indirect productivity effect,’ and that “the cost savings associated with employing immigrant and offshore labor increases the efficiency of the production process, thus raising the demand for native workers.”

The CNN article mentioned above also observed that outsourcing benefits the U.S. economy in yet another way; “Workers in foreign countries who get the manufacturing jobs… can then enter the developing middle class, which in turn increases demand for goods produced in the United States.”

It simply makes sense; strategies that create growth for your business will ultimately benefit the local as well as the global economy.

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Sep 4, 2014

By: Arlette Measures

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