Most Executives Think Outsourcing Will Destroy America - Business

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Business :: Most Executives Think Outsourcing Will Destroy America

Outsourcing has received increased attention in the media over the past few years as companies shift American jobs over to other countries. It now appears that even American executives are becoming afraid of outsourcing because of its damage to the long-term health of the country. To just over half of executives outsourcing can serious hurt the American economy.

A recent survey by TheLadders.com of executives that earn over $100 K a year indicates that most top executives are afraid of outsourcing. The study indicates that outsourcing may have serious negative affects on American businesses and is likely to damage our country over the long-term.

The study found:
43% stated that outsourcing to Asia would “ultimately cause the demise of American business.”

24% stated that outsourcing to Asia was “a reasonable solution to high U.S. labor costs”.

23% stated that outsourcing was the “only way American companies can compete in a global business economy.”

9% state that outsourcing jobs to Asia was “morally wrong”.

Thus the study confirms that 52% if executives feel that outsourcing is a major problem and/or morally reprehensible. These executives maintain a patriotic and loyal disposition to the United States and would like to find some solution to the American outsourcing problem. The other executives are more concerned with short-term gains and are likely to utilize outsourcing to increase their profits at the expense of America’s long-term security.

Perhaps, government legislation may be needed in order to deter organizations from moving their operations overseas, building cheaper costing products, and selling them back to the United States at full-rates. The theory proposes that since Americans are not making the same amount of compensation and benefits as they have in the past, they are unlikely able to afford these over-priced products in the future. At some point Americans will have to lower their standards of living in order to focus on a more survival type mentality that will eventually hurt what is left of the American business environment. If people are unemployed or working for low wages they won’t have the money to purchase luxury products which will lower the demand for these products thereby causing these companies to lay off even more workers. Thus under a suppressed business environment a depression type era may again come forth.

Author Info:

Murad Ali is a two-time book author, a human resource management professional, and a Ph.D. candidate. Please visit http://www.thenewbusinessworld.blogspot.com for more articles.

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