Little-Known Facts about Foreign Outsourcing and Globalization

Little-Known Facts about Foreign Outsourcing and Globalization

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Daven Michaels

New York Times Bestselling Author, 30-year business veteran, and Executive Chairman of CurrentC Group.

Over the years, outsourcing has been a hot subject of discussion. However, outsourcing simply means contracting the job of a business to a third party or different company either in a foreign country or own country and is a major part of globalization. Foreign outsourcing is now the order of the day among many companies all over the world. They outsource work to foreign countries to get an edge over the competition and to save money.

Two popular trends seen in international outsourcing today are a lot of information technology jobs being outsourced to Philippines and jobs in the automotive industry being outsourced to Mexico. Recruitment, customer service outsourcing, logistics, web design and development, legal outsourcing, content development, and manufacturing are other overseas outsourcing jobs that are popular among outsourcing.

Big corporations have a lot of issues to tackle when it comes to running a business and doing all alone is nearly impossible. The fact that organizations can outsource jobs to outsourcing firms that specialize in that line of business and guarantee more quality job is one benefit of foreign outsourcing.

As part of outsourcing strategy, for example, about 90% of the parts of Apple iPhone is outsourced to a foreign country. In addition, it was gathered that finding the number of qualified engineers to supervise an assembly line for Apple in the United States would take almost nine months, while it took China 15 days as a result of overseas outsourcing.

Another little-known fact about international outsourcing is that you can save millions in costs. Nike is renowned for outsourcing its shoe manufacturing for the purpose of saving money on wages in the U.S. Also studies showed that up until recently outsourcing could also create jobs in the United States.

It is noteworthy that there are pros and cons of outsourcing. To avoid the cons of outsourcing, the Chief Executive Officers of Companies should continue monitoring the offshore outsourcing companies they outsourced business to once the outsourcing contract is signed.


By and large, the organization that outsourced business to other country is the biggest recipient of the foreign outsourcing. The international outsourcing company providing the outsourcing service has the skill and know-how to save huge sums of money. Nevertheless, both the citizens and the economy of the United States take a hit in doing so. The taxpayers lose jobs and the economy loses tax revenue to other countries due to international outsourcing.

Daven Michaels is a New York Times Best Selling Author and CEO of the premier global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.

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