Outsourcing provides the opportunity for small IT companies to be funded, and ultimately hire Americans. Although, outsourcing in general has been viewed in a negative light lately, because of the millions of manufacturing jobs that have been outsourced, the positive effects of outsourcing are rarely discussed. With the current unemployment problem, it is easy for many to blame outsourcing as one of the culprits; why outsource, when an American is willing to take the job? Nonetheless, outsourcing by small companies is at times necessary for the company to stay afloat and survive, especially in IT and during recessions. The salaries of the most skillful software developers in the United States are much higher than a similarly skillful developer in Latin America or Eastern Europe. Within the United States, it is difficult to get a hold of the most skillful developers, since many of them are already working for large companies, such as Google and Apple. Small businesses and startups are forced to look outside of the U.S. to find skillful and experienced developers that fit their budget.
Small companies and startups often rely on outsourcing, to assure that skillful developers will work on their projects for a lower cost than in the United States. The reason for doing this is that they can get more work done for the project with a smaller budget; otherwise, a small company or startup may not have the sufficient funds to carry out their day to day operations, much less finish projects. These small companies and startups may outsource some work to foreign companies or workers, but by doing so, they also provide the opportunity for Americans to work. If a small company is forced to do every part of a project within the United States, they may not have the funds necessary to survive; employing some Americans is better than employing none. Small companies would still have to hire people within the United States, in order to carry out necessary daily operations.
Outsourcing allows startups and small businesses the opportunity to grow, which can eventually lead them to hire more Americans. For these companies and people in favor of them, outsourcing should not be looked as a job destroyer for Americans, but more of a creator of job openings. Small businesses outsource, not necessarily to maximize profit, but to stay in business and innovate. Small businesses in IT need to use their budget as efficiently as possible, especially in a climate where it is difficult to get loans. This means hiring the most skillful developers for the lowest reasonable wages. What this allows, is a small business to budget for the future, and to continually innovate; innovation leads to success, which leads to growth and the eventual hiring of more Americans. The ultimate goal of a company that outsources some of their work is success. Outsourcing provides startups and small businesses with an efficient way of becoming successful with their budget and few resources they may have.
Companies that are considering outsourcing typically have multiple reasons to do so. Alisa Henley, from Examiner.com, listed a few good reasons that a company may consider outsourcing; among them are reduced costs, improved business focus, unfulfilled needs, risk management, and better employees. Although I believe the best employees are those that understand your company’s goals and culture, directly hiring a skillful American employee, permanently, in IT is expensive; a “better employee” in IT, for smaller companies, is a skillful developer that the company can afford to pay and assure that the project will be finished. The current economic climate does not allow companies to take great risks when hiring, and expenditures are kept as low as possible to allow the company to remain afloat. Current economic uncertainty is assuring that outsourcing will remain a viable option for most companies, regardless of size, as Stephanie Overby stated for CIO.com, “More than 40 percent of corporate IT leaders said that a double-dip recession would lead to increased outsourcing in their organizations, according to an October survey conducted by outsourcing analyst firm HfS Research. Another 46 percent said a second downturn would result in layoffs.” For a small business that is attempting to finish their product and grow, outsourcing is the only viable option that will lead to success.
The majority of working Americans are employed by small businesses. With the current trend of the United States moving towards a service based economy, of which IT is part of, it is critical that not only small IT businesses remain afloat, but that they are created. Outsourcing allows for this to occur, which as a result, also leads to American’s being hired to handle vital roles within the company. If it were not for outsourcing, many companies would have not been founded or would have ceased to exist. Outsourcing indirectly leads to jobs being created within the United States, which is vital for Americans in this economic climate.
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