Is Outsourcing Bad for the Economy? Are We Irresponsible For Encouraging It?




Internet Business Mastery AUDIOblogs: Our Best Tips in 15 Mins or Less show

Summary: <br><br> A few days ago we received an email chastising us for encouraging the use of offshore outsourcing. I spent a couple hours exchanging emails with the sender where we shared our differing opinions.<br> As a result, it struck me that Jeremy and I hadn't fully shared our our views on what could be an emotionally charged issue given the current economic climate (not only in the U.S. but in many places around the world.) This is a long post, but it is one that is important to consider.<br> In the interest of discussion, I've included the email here (with the sender's name omitted) followed by our views.<br>  <br> Listen Now!<br> <a href="http://feeds.feedblitz.com/-/54464584/0/ibmaudioblogs.mp3">http://feeds.feedblitz.com/-/54464584/0/ibmaudioblogs.mp3</a><br> <a href="http://feeds.feedblitz.com/-/54464584/0/ibmaudioblogs.mp3" target="_blank">Download the MP3 Here</a><br> Jeremy and Jason,<br> I'm surprised that you would boast about outsourcing to the Phillipines at a time when unemployment in the US is at a high.<br> There are plenty of highly qualified tech people looking for work in the US who can help you--people who can actually come to your office and meet you in person.<br> I understand that businesses have to be competitive. And, they are often driven to find the cheapest price, but at what cost--fewer jobs in the US, the comodification of high-level intellectual jobs; which makes it difficult for US companies to compete because we use local talent and have to charge more.<br> Your email announcement describes hiring this person like you found a great online deal on a laptop. This is just as problematic, if not more, as hiring outside the US--human beings are not commodities.<br> I'm sorry you've gone this route. You have lost a devoted follower.<br> NAME OMITTED<br> This was in response to an e-mail newsletter that said we'd just hired a full-time Filipino web developer for $500 USD a month.<br> In my emails I responded to the following claims.<br> <br> * That we caused harm to jobs and the economy.<br> * That we talked about a human being as a commodity.<br> * That we have a responsibility specific to the U.S.<br> <br> Here are my thoughts on each of these points.<br> Which Option Would You Pick?<br> When making business decisions, it's important to consider your Definite Major Purpose as well as the impact that your actions will have on others. For us the ultimate mission is to bring increased freedom and financial stability to our listeners and Academy members.<br> Continually improving our sites and web services  helps us accomplish this mission. We've reached the point where this requires hiring an ongoing web developer. To do this we have two options.<br> Option 1<br> The first option is to hire domestically. Our budget allows us to engage a freelancer for ten hours of work a month. Compared to a full-time developer this only provides a sixteenth of the improvements to our sites (ten hours a month instead of 160, thus greatly limiting our ability to accomplish our primary mission.<br> In order to afford more time from a domestic freelancer, we'd have to raise our prices to cover the additional expense. This would make it harder for people to afford our help to create the income they need.<br> Option 2<br> On the other hand, with the same budget we can hire a full-time web developer in the Philippines. This gives him a very livable salary. We achieve sixteen times the site improvements than if we hired in the U.S. Consequently, our ability to reach and help people create their own business and income is vastly improved.<br> Outsourcing Leads to a Stronger Economy<br> By being more cost-effective, we assist more of our listeners to achieve financial stability and freedom. As a result, new businesses are created. This leads to more jobs and income. It has been said repeatedly that small businesses are the backbone of our economy. Thus,