NEW YORK, NY, February 01, 2013 (Press-News.org) For many U.S. businesses outsourcing is essential in order to guarantee growth. Its purpose is not to maximize employment, but to maximize profits. "Businesses are looking to minimize costs as much as possible," says CEO of Red Ten NYC, an outsourced sales and marketing company based in New York City. "The figures show that outsourcing does not mean producing on lower wages and standards; it makes our country competitive on the world market", he continues. The U.S. is with 21% of global manufactured products world leader and according to the National Association of Manufacturers, the sector supports 17 million jobs in the country. Multinational corporations employ 22.9 million Americans, more than twice as many as in any other country and furthermore 'insourced' jobs brought to the country by companies based abroad account for nearly 5% of employment in the private sector (The Foundry at blog.heritage.org).
Red Ten NYC's CEO says: "These figures show clearly that outsourcing is not a danger to the U.S. economy, contrariwise it helps businesses to grow which strengthens our economy." According to an article by Dan Ikenson (forbes.com), globalization and outsourcing give businesses a choice to produce and operate in other countries where the economic and political environments or structural conditions to operating smooth, cost-effective supply chains might be more favorable. Further research shows that about 90% of outsourcing is for the purpose of serving foreign demand and only between 7 and 10% of investment abroad is for the purpose of making sales back to the U.S. Along with statistics published by the Bureau of Economic Analysis, 75% of the $4.1 trillion of U.S. foreign direct investment stock have been in Europe and countries like Canada, Japan, Australia, New Zealand, Taiwan or Korea at the end of 2011, only 1.3% in China.
"Not only have the U.S. discovered the effectiveness of outsourcing; many countries worldwide outsource their businesses to the United States," explains CEO of Red Ten NYC. 5.3 million Americans work for foreign companies. Businesses might invest in the U.S. economy due to cost effectiveness or proximity to a large, fast growing market. Germany's Thyssen-Krupp for example has created jobs for tens of thousands U.S. workers and generates significant economic activity (forbes.com). In addition to that, BMW has added 300 new jobs to its South Carolina plant last year (heritage.org).
Dan Ikenson explains in his article: "Governments are now competing with each other to attract the financial, physical, and human capital necessary to nourish high value-added, innovation-driven, 21st century economies." Outsourcing effectively can enhance business growth. Red Ten NYC concludes that expanding businesses are in the position to create more jobs which can help decrease the unemployment rate. "Overall, this looks like a good deal for the U.S. economy to me," says Red Ten NYC's CEO.
Website: http://www.redtennyc.com/
Red Ten NYC: Outsourcing Helps Businesses Be Competitive in the 21st Century
Many U.S. businesses see outsourcing as a necessity to remain competitive. Red Ten NYC explains in contrast to the existing misconceptions often emphasized by the media, companies outsource to save costs rather than wages
2013-02-01
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[Press-News.org] Red Ten NYC: Outsourcing Helps Businesses Be Competitive in the 21st CenturyMany U.S. businesses see outsourcing as a necessity to remain competitive. Red Ten NYC explains in contrast to the existing misconceptions often emphasized by the media, companies outsource to save costs rather than wages