The outsourcing industry is growing, and that’s good news for business owners and employees, but it’s also a major headache for the government.
This week, we asked two experts to weigh in on why it’s a good idea for business, employees, and governments to keep outsourcing going, even if it means a slower pace of growth.
Jason Zweig, senior fellow at the Center for American Progress, is a senior fellow in the MIT Center for Internet and Society and a senior director of policy and strategy at the MIT Media Lab.
He also is the author of the book, Outsourcing Nation: How Businesses, Governments, and Individuals Can Get the Job Done by Outsourcing.
Igor Kolomoisky, a professor at the University of California, Berkeley, is an associate professor of economics at the Berkeley Haas School of Business.
He is also a senior researcher at the International Institute for Strategic Studies, a non-partisan think tank in the U.S. and Europe.
He’s also the author or co-author of several books on the topic.
In this interview, we discuss: What are some of the advantages and disadvantages of outsourcing for the companies and government that are doing it?
What are the biggest advantages and the biggest disadvantages?
How are we going to fix this issue?
We’ll discuss: The biggest downsides to outsourcing?
What’s going on with some of these big companies that are using outsourcing?
And then we’ll talk about: Why it’s important for governments to be investing in the industry.
We’ll also talk about some of those big-name firms that have decided to keep some of their workers from going to Mexico or China, but are now outsourcing, including Amazon, Netflix, and Amazon Prime.
Jason: It’s interesting to note that one of the big downsides of outsourcing is that, for many companies, there is a tremendous cost to moving to Mexico and China, and they can’t justify doing that.
If you were to go and hire a person in a Mexican factory, it would cost $20,000, and there would be no way to get them out of the country on the other side of the border.
So that’s a huge cost to be added to the overall package.
And if you’re hiring workers in a factory in China, it’s $500,000.
So, outsourcing is not for everybody, but companies that do it are often willing to pay that kind of money, which is a good thing for taxpayers and taxpayers are paying that cost, Jason: And in some cases, the costs are actually passed on to taxpayers.
For example, Walmart, which has been a big beneficiary of outsourcing, paid nearly $10 billion in U.N. taxes to Mexico in the years after it opened its doors there.
That’s about the cost of paying $100,000 to someone in China for their entire year, Jason Zwei: It is very important to recognize that this is a problem for a lot of different reasons.
There’s the cost for the workers who are being hired, for the technology, for training, and for the infrastructure that goes with it, Jason’s: But for the business owner, there’s a cost, too.
When you are investing in something, it really makes sense to have a little more of that cost in the equation, as well.
So the cost to a company is something that you need to account for when you’re evaluating the investment, and if it is a negative, that cost goes away.
So outsourcing is one way to mitigate some of that, but there are also other ways to mitigate the cost.
And one of those ways is to have more of an overall economic and economic incentive to hire local workers.
Jason has a lot to say about that, too, in his book, and he points out that when you get a company to move to a new country, it often means that the employees are better off there, but also that the company will pay more tax.
But there’s another way to minimize the cost: By paying the company for the labor.
Jason’s advice: When a company hires an American worker, that employee pays taxes to the United States.
But the American worker then pays that employee taxes to his or her home country.
That makes it more profitable for the company.
The company also pays the American employee taxes, so that company can take advantage of the repatriation incentives in the future.
Jason also points out a couple of things that make outsourcing an effective tool for business and government.
The first is that it’s much easier to do than hiring foreign workers.
There are so many ways to make outsourcing cheaper.
Jason says: If you want to be a global company, you have to have an international base of operations.
The outsourcing market is very competitive, and companies that have done it well tend to pay more than companies that don’t.
So they have more incentive to do it, and the company has more incentive not to do so. It’s