Offshore Outsourcing is the Next Step in Business Evolution

For three decades the United States of America has been battling inflation while trying to stimulate the economy. This battle caused many changes in economic policy as a trial and error approach was enacted. In the 1990's, President Bill Clinton tore down the trade barriers by enacting the North American Free Trade Agreement (NAFTA). In 1998, the government saw it's first surplus in 30 years. By the year 2001, the country once again found its self falling into recession. The cause of this recession has been ascribed to sources such as corporate scandal, the dot-com bubble, and even the natural process of the economic cycle. Whatever the reason, it remains true that businesses are looking for solutions to keeping their competitive advantage. With the rising cost of labor and falling levels of production, offshore outsourcing is necessary for companies to keep their competitive advantage.

There are many people that would argue that offshore outsourcing has been too radical of a solution for businesses and has taken jobs from many families and left them with no income. The political involvement in outsourcing, while it has shed some light on this controversial subject, has hurt the process. Addressing only the loss of jobs gives the public a half-truth and remains just a small portion of the offshore phenomenon. The realities of politics are such that one cannot even suggest that job losses or outsourcing is a necessary component of a healthy economy. Any statement like this brands one insensitive, at best, or a fool, at worst. It also means that politics force politicians to take public positions that are only partially truthful. (Suranovic, 2004)