Anti-Outsourcing Bill Deathknell for U.S. Progress?

Erasing progress

The new bipartisan bill that discourages call centers from offshoring might be the most regressive measure in modern times. 

If the bill is passed, call centers planning to use offshore workers must notify the Department of Labor at least 120 days in advance. These companies would be included in a list that would make them ineligible for federal loans or grants for five years. 

The bill only targets call centers but might be a precursor for a sweeping ban on offshoring altogether. If so, such a measure would undo the progress that American businesses have made over the years. 

Outsourcing offshore labor has been part of the American business paradigm since the 1960s, when the likes of General Electric and IBM moved their manufacturing plants out of the country. Since then, outsourcing has become a fundamental part of business operations. The most popular are the call centers, which handle customer inquiries and concerns. Over time, outsourcing has expanded into various functions. 

Small and medium-sized firms are outsourcing HR services like recruitment and payroll. Others are working with third-party firms to handle their IT systems so they can stay up-to-date. In healthcare, virtual nurses help fill in critical gaps plaguing American healthcare. Outsourcing has become an integral part of global business and remains the most useful tool in the modern world. 

Outsourcing is for the people

Outsourcing offshore generates massive cost savings for plenty of companies. They use these funds to invest in new technologies, enhance their services, and open shops in new markets. A diversified portfolio and robust cash reserves empower companies to shield themselves from unpredictable economic shocks caused by wars, bubble bursts, or other financial disruptions.

A broader business portfolio allows firms to counteract vulnerabilities in their core operations. Diversifying is a colossal business process that takes years. Global employment eases bottlenecks, allowing businesses to offer more services and grow their headcount quickly. 

This is imperative in today’s fast-paced business environment, where firms are continually improving with new-age tech tools. Adapting to change must be done with haste and efficiency. Every minute, dollar, and resource is vital to a business’s advancement.

This is why more and more firms are outsourcing part of their operations offshore. The short-term and long-term benefits are just too good to ignore. Global employment saves costs and provides access to more specialized workers. It allows businesses to remain competitive in the short term and gives them access to more growth opportunities, which is beneficial for the long term. 

The belief that outsourcing hurts national economies is a myth. Outsourcing done well not only accelerates growth but also saves firms from global economic turmoils. The world is too connected and globalized to ban offshore outsourcing. Cutting ties with the rest of the world will only raise national inflation, cut profits, and hinder growth. If America wants to be great again, it must open up. 

The question for your business

How has offshore outsourcing helped your business?

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