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Ask The Readers: Is Outsourcing Irresponsible?

Ask The Readers: Is Outsourcing Irresponsible?

By Pat Flynn on

On the Internet Business Mastery Podcast Blog, there’s an interesting debate going on, and it involves a little bit of what I do online.  [Full disclosure: I earn a commission if you purchase through this link] There are tons of very interesting comments and a lot of rage about the subject of outsourcing.

On one hand, online businesses outsource many tasks overseas because you really can’t beat the price. As I mentioned in a previous post, I had hired someone from the Philippines for $2.22/hour to do some web research for me. Hiring someone in the U.S. would cost me a lot more, and a lot of businesses rely on these low wages in order to succeed. In other words, many online businesses would not survive if it wasn’t for outsourcing.

On the other hand, outsourcing takes business and money away from within the U.S. Many people are losing jobs to people overseas who can do the same work for far less. Also, people are saying that paying someone $2/hour is just wrong and immoral.

As a response to that, the “pro-outsourcers” say that although they are hiring people overseas, they have U.S. based businesses that get taxed by the U.S. and contribute to the economy and are allowed to conduct business as they wish. As far as the low wages, $2/hour seems very low for the U.S. but when converted to pesos, $2/hour is a normal wage for workers in the Philippines.

Then, there’s some people’s feelings about our responsibility to America. It’s all really interesting stuff! I encourage you to have a look at Jay’s post and the comments over at the Internet Business Mastery Podcast Blog.  (full disclosure – I earn a commission if you purchase) I think I’ve read through them 3 times already.

I’m not sure exactly where I stand on the issue, and I usually try to stay out of these kinds of things—but I really do feel for the people who are losing their jobs to people overseas (since I know what it feels like to lose a job). On the other hand, as a business owner, it’s nice to be able to get work done at a cheaper rate and have more capital for other things. Also, it’ nice to be able to provide an income for some individual in another country who may be struggling and needs a job too.

What are your thoughts on outsourcing? Where do you stand on this issue?

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