Offshore outsourcing is considered to be a controversial topic in today’s world and it is considered to be an argumentative issue in the world of economics. In order to avoid government intervention many American companies are moving their operations and these companies consider outsourcing as an important phenomenon because their gross income is increasing. Multinationals organizations are moving to countries such as India and China and these organizations receive a heft amount of tax benefits through this approach. Similarly, the quality of customers improves and Americans in return spend more money. The advantages and disadvantages of outsourcing are wide and varied but many strategies and scholars believe that in the long run the economic disadvantages of outsourcing would overweigh the advantages.
When an organization moves into the outsourcing arena an organization loses its managerial control. This happens because it is quite easy to manage you own employee rather than managing the outsourcing organization. Similarly, one of the biggest disadvantages of outsourcing is that the organization would be completely dependent on the offshore partner. Lack of communication and can cause serious problems for the organization because the phenomenon of offshore outsourcing forces the businesses to communicate with various cultural groups. Similarly, one of the biggest economic mishaps of outsourcing is the loss of jobs to Americans and other westerners. Because companies are moving from one country to another country therefore these jobs are offered to the locals of that country. Many individuals believe that outsourcing is unjust and unethical for the economy of United States because it sabotages the growth of western countries and America (Manghirmalani, 2009). Other nations are growing and they are the growth of other nations is refined by the western countries. Therefore, the biggest economic issue is that businesses in United States and other developed countries are improving the economy of other underdeveloped and developing countries.
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