New Jobs Bill to Curb Outsourcing

A new jobs bill has been proposed, which will make it mandatory for U.S companies to disclose the number people employed abroad. The sponsor of the bill is Rep. Gary Peters, a Democrat from Michigan. Until now, companies disclosed the number of people on their payrolls in entirety, but never broke-down the data. The new bill will ask companies to provide information regarding the number of employees Country-wise, in the U.S; the information will have to be provided State-wise.

Within the framework of the current rules, huge multi-national corporations like Apple and IBM have kept such data confidential. The Outsourcing Accountability Act, H.R. 3875 would direct firms with revenue over 1 Billion to classify such data. Companies would also have to keep a track of the increase or decrease in percentage of jobs.

The Imperatives of Outsourcing in the New Economic Order

Outsourcing as a strategic choice by several corporations since its acceptance as a business idea has sustained the interest of a larger corporate community on account of the returns rendered by such an arrangement without large capital expenditure involved. Besides its share of controversies in regards to off-shoring of jobs and diminishing quality standards, outsourcing as an idea has maintained its faithful fan following among corporate audience and has managed to, in most cases, become a source of profit and cross-country partnerships sustained through global ties and arrangements.

Why Outsourcing is Important?

Outsourcing is a huge part of today’s business models to be efficient, profitable and successful. However, the question often pops up as to why outsourcing is important? Let us look at reasons that make outsourcing a hit. The need for outsourcing arose when there was a dire need in new business strategies to tackle the dynamic business industry. Outsourcing has now grown to be an important business tool of adaptability and overall flexibility. Companies found out that outsourcing was lowering their operational costs, hence improving their revenues and profits.

Cost Effective

The primary reason that makes outsourcing work is cost-effectiveness. The escalating costs in developed countries and the high cost of skilled-labor are reasons why businesses started looking elsewhere. The financial meltdown has left companies with even more stringer budgets, making outsourcing a very viable option. The outsourcing of today is referred to as a ‘strategic management alternative’.

Comments (1)

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