What is Outsourcing?
Outsourcing is more than offshoring jobs to foreign countries. It also comes in the form of employers contracting out once in-house jobs to the lowest bidder, and the privatization of public services--giving corporations control of our water, public safety, and more. Outsourcing in all its forms is the result of poor management and destroys middle-class jobs, our communities, the quality of products and level of services.
Outsourcing is bad for working people.
Foreign outsourcing outright eliminates good middle class jobs. Domestic outsourcing transforms quality jobs into independent contract work that lacks a decent salary, benefits and retirement security. Outsourcing through the privatization of public services cuts wages, lowers access to healthcare, and increases turnover.
Outsourcing is bad for the local community.
When jobs are sent overseas, the community suffers as money is stripped from the local economy. When good jobs are outsourced domestically by employers attempting to boost profits, pay and benefits decrease and the end result is a shrinking middle class. Privatization of public services worsens inequality by creating a race to the bottom on labor costs and undermining the very public services needed most by those in our community that are least fortunate.
Outsourcing is bad for customers and the public.
Chasing profits to pad the bottom line through outsourcing sacrifices the quality of products and services. Giving up local operational control to a sub-contractor interested more in maximizing their own company's profits over providing quality output has a negative impact on customers. Outsourcing the skill, knowledge, and experience of dedicated in-house employees that are committed to quality work leads to a poor product and reduced service levels. The end result is customers and the public suffer.
- In the Public Interest Report: How Privatization Increases Inequality