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What are the Pros and Cons of Offshoring Jobs?

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  • Written By: Felicia Dye
  • Edited By: Melissa Wiley
  • Last Modified Date: 02 November 2016
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The pros and cons of offshoring jobs can vary depending on the perspective from which the issue is viewed. For workers in poorer countries, it can open up opportunities that may not be available from domestic sources. This, however, also tends to mean that there is a loss of opportunities in the nation where the jobs are generated. The governments of developed countries can benefit from the diplomatic implications, but they may have to bear the anger of their citizens.

Companies can save significant amounts of money by offshoring jobs. In many cases, they are able to access labor much more cheaply. Certain materials may also be cheaper, especially if they are domestic products in the nation where the jobs are filled. Furthermore, other operational costs may be lower due to fewer regulations.

Offshoring jobs to third-world countries can have a significant impact on economies that have excessive unemployment rates and limited opportunities. This can benefit the governments of developed nations in several ways. First, it can be very good for diplomatic relations. Second, providing people with the ability to succeed in their native lands can drastically reduce immigration problems.

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The native response a government receives when foreign labor is widely relied upon may not be as positive, however. In many cases, citizens will argue against offshoring jobs because it results in fewer opportunities in their national and local economies. They may also argue that it reduces competition because labor is usually cheaper in less developed countries, which can empower employers to offer an ultimatum — lower salaries and less benefits or no jobs at all.

Offshoring jobs also lends itself to problems such as lack of adequate oversight. On numerous occasions, it has been found that businesses operating in one nation are affiliated with operations in another nation that act unethically or even criminally. The company that sent the jobs offshore generally claims to be unaware of such practices. Whether this is true may not matter to consumers, and they may refuse to continue supporting the company.

There are also possibilities that work may not be completed to the desired standard when jobs are offshored. In the freelance writing industry in the U.S., for example, many businesses have tried to find writers to produce content at cheaper rates in other countries. As English is either not the first language of the offshore writers or they speak a different type of English, the resulting work generally requires additional labor, and therefore time, from the job provider before it can be used.

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serenesurface
Post 3

@donasmrs-- I've heard about this too. I think it's a major issue for countries that contract out the administration of their work in other countries. They let the locals there do the oversight and have no idea about the labor conditions.

SarahGen
Post 2
@donasmrs-- I agree with you, but I think those issues can be overcome with more strict regulation by companies. Many brands that have offshore factories have taken notice of these issues and are regulating things more closely.

When there are regulations, labor rights will be protected and people in those countries will be better off. Because the truth is that if these people weren't working in these offshore factories, they probably wouldn't have a job at all and would be starving.

We're also better off here because we're getting products for cheaper than we would otherwise and so our purchasing power has increased. When we buy more, the economy grows.

So I think that the advantages of offshoring far outweigh the disadvantages.

donasmrs
Post 1

Offshoring jobs increase child labor and unfair labor practices in other countries.

The reason that we offshore jobs is because labor is cheaper in other countries. But the reason that labor is cheaper in other countries is because they usually pay their laborers zilch and also overwork them. Child labor and slave labor is also common in these countries. Even though this is not the intention, offshoring ends up promoting these unfair practices.

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