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Old 05-07-2009, 03:23 PM
 
3,853 posts, read 11,452,677 times
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I run a small online business that sells education and information products. I outsource nearly all of my labor needs which consists mostly of doing research and writing. We plan out what we need to be done then allocate that workload to various people in India. They only get paid if they do good work. If the work is not what we want or up to our standards, we send an e-mail telling them what needs to be changed. Once fixed, we pay them.

If I wasn't able to outsource my business would have probably never been able to make it. By having the ability to outsource my cost of business is 20-30 times lower than if I were to have the work done in the USA.

As a result, my business is significantly more competitive compared to other people delivering similar products to the market. If I couldn't outsource the work my business would have never made it. Also it would take me significantly longer to bring products to the market (because I would have to use more expensive labor or do it myself).

Instead of complaining about outsourcing and trying to prevent it. We should allow people to utilize it in a better fashion. If something could be done for 1/10th the cost of labor in another country and do just as good a job then we should send the job over there and use the money we saved to reinvest in the company or deliver better service to clients.
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Old 05-07-2009, 03:53 PM
 
Location: Rockland County New York
2,984 posts, read 5,137,092 times
Reputation: 1285
Quote:
Originally Posted by killer2021 View Post
I run a small online business that sells education and information products. I outsource nearly all of my labor needs which consists mostly of doing research and writing. We plan out what we need to be done then allocate that workload to various people in India. They only get paid if they do good work. If the work is not what we want or up to our standards, we send an e-mail telling them what needs to be changed. Once fixed, we pay them.

If I wasn't able to outsource my business would have probably never been able to make it. By having the ability to outsource my cost of business is 20-30 times lower than if I were to have the work done in the USA.

As a result, my business is significantly more competitive compared to other people delivering similar products to the market. If I couldn't outsource the work my business would have never made it. Also it would take me significantly longer to bring products to the market (because I would have to use more expensive labor or do it myself).

Instead of complaining about outsourcing and trying to prevent it. We should allow people to utilize it in a better fashion. If something could be done for 1/10th the cost of labor in another country and do just as good a job then we should send the job over there and use the money we saved to reinvest in the company or deliver better service to clients.
Well if you continue to outsource there will be no one left here in the United States to purchase your product. Since I owe Citibank $60k in student loans and can't find a teaching position, I will probably help bring down the bank. Yes I like this a lot! Since I can't find a job all of my creditors who need my money to make a profit will go out of business. Soon we will be a nation of unemployed citizens who don't have to worry about our creditors because we the people will drive them out of business, just by not paying our bills! While we are at it lets bankrupt the federal government too!
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Old 05-07-2009, 04:20 PM
 
3,809 posts, read 7,275,819 times
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It's funny the OP bragged that his outsourcing of local jobs lowers his cost of business by 20-30 times. It' great for him that he gets to pocket all that money. I have never seen the savings passed on to the consumers though. The foreign-made shoes, shirt, electronics I see at the stores are not discounted to reflect the savings achieved by outsourcing of local jobs.

I am sure the individuals and businesses who outsource local jobs to foreign countries benefit a great deal. While they enjoy the 20-30 times lower business cost, their fellow Americans are homeless, unemployed and uninsured.

There are little things like the tax base. Employed people pay income taxes. They can buy things and pay sale taxes. They can pay the mortgage and keep their homes and pay property taxes. Without jobs, none of the above exists.

But who cares. Everyone is for himself, right?

Last edited by davidt1; 05-07-2009 at 04:31 PM..
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Old 05-07-2009, 04:28 PM
 
3,853 posts, read 11,452,677 times
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Quote:
Originally Posted by Stac2007 View Post
Well if you continue to outsource there will be no one left here in the United States to purchase your product. Since I owe Citibank $60k in student loans and can't find a teaching position, I will probably help bring down the bank. Yes I like this a lot! Since I can't find a job all of my creditors who need my money to make a profit will go out of business. Soon we will be a nation of unemployed citizens who don't have to worry about our creditors because we the people will drive them out of business, just by not paying our bills! While we are at it lets bankrupt the federal government too!
It isn't my fault you took 60k in student loans. Also banks shouldn't have loaned money so easily. They knew the risks of lending money that was possible default. However, you are forgetting one thing. Student loans can't be bankrupted so the only person who will be screwed is yourself. If I were you I wouldn't play from the victim mentality (ie. I can't find a job) instead use your talents and resources to create something that provides value to people.

Also the federal government in on track for bankruptcy if things don't change fast. We pledged too much in social security, medicare and foreign war spending. It can't last forever and if it does it will implode the entire economy from over taxation.

If US goes bankrupt then I'll just shift my goods and services towards the Indian marketplace. They speak English over there quite fluently.
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Old 05-07-2009, 04:28 PM
 
Location: Charlotte, NC
2,193 posts, read 4,459,414 times
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Quote:
Originally Posted by Stac2007 View Post
Well if you continue to outsource there will be no one left here in the United States to purchase your product.
Exactly!
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Old 05-07-2009, 04:35 PM
 
3,853 posts, read 11,452,677 times
Reputation: 2503
Quote:
Originally Posted by davidt1 View Post
It's funny the OP bragged that his outsourcing of local jobs lowers his cost of business by 20-30 times. It' great for him that he gets to pocket all that money. I have never seen the savings passed on to the consumers though. The foreign-made shoes, shirt, electronics I see at the stores are not discounted to reflected the savings achieved by outsourcing of local jobs.

I am sure the individuals and businesses who outsource local jobs to foreign countries benefit a great deal. While they enjoy the 20-30 times lower business cost, their fellow Americans are homeless, unemployed and uninsured.

There are little things like the tax base. Employed people pay income taxes. They can buy things and pay sale taxes. They can pay the mortgage and keep their homes and pay property taxes. Without jobs, none of the above exists.

But who cares. Everyone is for himself, right?
You are forgetting that capital flows in a circle. People who make profit don't just let it sit in their bank accounts. They spend it. Such as reinvesting in their business, spend it into the economy or make personal investments. It occurs on a global scale as well. Right now we have negative trade balance so more money is flowing offshore instead of onshore. Eventually that will flip around. China, India and the middle east will start buying US goods and services. The US won't be consuming as much as we do as well, instead foreigners will be buying it and we will be using our money to pay our debts (instead of consuming).

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Old 05-07-2009, 04:37 PM
 
Location: Rockland County New York
2,984 posts, read 5,137,092 times
Reputation: 1285
Quote:
Originally Posted by killer2021 View Post
It isn't my fault you took 60k in student loans. Also banks shouldn't have loaned money so easily. They knew the risks of lending money that was possible default. However, you are forgetting one thing. Student loans can't be bankrupted so the only person who will be screwed is yourself. If I were you I wouldn't play from the victim mentality (ie. I can't find a job) instead use your talents and resources to create something that provides value to people.

Also the federal government in on track for bankruptcy if things don't change fast. We pledged too much in social security, medicare and foreign war spending. It can't last forever and if it does it will implode the entire economy from over taxation.

If US goes bankrupt then I'll just shift my goods and services towards the Indian marketplace. They speak English over there quite fluently.
You are nothing more than a bottom feeder and a hypocrite. It was you and people like you that destroyed the U.S. economy. You admit you are all about profit. I can tell you one thing. There are thousands of recent graduates just like me who went to college for all sorts of careers. They can't pay back their loans any more than I can pay back mine.
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Old 05-07-2009, 04:39 PM
 
Location: Rockland County New York
2,984 posts, read 5,137,092 times
Reputation: 1285
Quote:
Originally Posted by killer2021 View Post
You are forgetting that capital flows in a circle. People who make profit don't just let it sit in their bank accounts. They spend it. Such as reinvesting in their business, spend it into the economy or make personal investments. It occurs on a global scale as well. Right now we have negative trade balance so more money is flowing offshore instead of onshore. Eventually that will flip around. China, India and the middle east will start buying US goods and services. The US won't be consuming as much as we do as well, instead foreigners will be buying it and we will be using our money to pay our debts (instead of consuming).
I see. You make your profit here and then invest your money back into into countries like China and India. I can see where you are coming from and where you are going.
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Old 05-07-2009, 04:51 PM
 
Location: Chino, CA
1,458 posts, read 2,905,163 times
Reputation: 546
Well,
It's basically taking advantage of a "temporary" condition. Businesses do it all the time... but is it really a sustainable or long term advantage?

The business saves on taxes too by not having to pay social security or report contracting expenses? How do you report these expenses without a SSN or Tax Payer Id?

Anyhow, it's basically the same as hiring illegal immigrants to save on costs. But a little worse since at least illegals spend money here contributing a little into the tax base.

Equivocally, these businesses and corporations that take on these practices are parasites, sucking labor productivity from both domestic and international capital, making profits off of the host country, and forgoing taxes.

Eventually, fewer customers will materialize in the host nation while the foreign country standards of living rises and it gets more costly. Furthermore at some point Mr. tax man realizes that profits and expenses aren't being taxed and they are losing out on tax revenues (from profits, incomes, etc.) and therefore creates tariffs and other barriers.

Those who continue to do this "assume" that eventually they can switch customers from the host nation to the country they have been leveraging labor capital but forget that they never really paid the foreign laborers enough to buy their products in the first place. At the end, the main scheme is to draw wealth from the producers to the capital owners that can't produce anything themselves. Eventually, the foreign producers become competitors and the innovators and one up the original capital owners like what Japan did to US, and possibly China too.

-chuck22b

Last edited by chuck22b; 05-07-2009 at 05:02 PM..
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Old 05-07-2009, 04:56 PM
 
3,460 posts, read 4,808,996 times
Reputation: 6677
If you're trying to grow India's economy, you can outsource labor while you watch your neighbors struggle to keep a roof over their head.

If you would rather see your family and friends prosper than people halfway across the globe, then you shouldn't outsource.

Where do your sympathies lie?
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