In recent decades, outsourcing American jobs has become common practice in order for companies to stay competitive in the global market and for them to cut costs to make larger profits. Current research and statistics are also suggesting that outsourcing will continue and even increase in the future as these types of business relationships are becoming more standardized and commonplace in today’s global economy. The term “Outsourcing” is generally used when Companies contract out certain business functions to an external supplier, eliminating the need to maintain internal staff necessary to perform that function. Outsourcing does not necessarily imply that jobs and production are relocated to another country (UK Essays, 2015, para. 5).

However, offshore outsourcing is the contracting of these business functions to companies in lower cost, primarily developing nations such as India, China, Malaysia, Singapore, and Philippines. Offshore outsourcing refers to trade with an unaffiliated party, while off- shoring refers to trade with an affiliated party (UK Essays, 2015, para. 5).  The topic of outsourcing American jobs has been debated for years and has been the main theme for many political and economic debates as some feel it is beneficial and others do not. For many Americans outsourcing and job loss is one of their biggest concerns. The majority of Americans also believe that outsourcing is creating a negative impact on the countries overall economy. One of the largest reason outsourcing has gained such popularity is that it enables cost reduction for the company as they are able to pay foreign workers significantly less for their work.

The cost savings are typically significant and allow companies to produce and sell products at much lower prices. For this reason and many others outsourcing has become a very tempting option for companies trying to increase profits and cut costs. Despite the concern and debate the issue may incite, outsourcing has proved to have many positive impacts on not only America but on the global economy as a whole.  Overall, the benefits of outsourcing and offshoring outweigh the bad. One of the most obvious reasons many companies chose to outsource their work is the cost savings that it allows. Due to outsourcing, companies are now able to achieve either equivalent or better quality at a much lower cost. Work that is done in the United States could be completed at a fraction of the cost in countries such as India and Asia.