Companies are actually creating more jobs for Americans as the ultimate result of offshoring some processes. A case in point, Paper Converting Machine Co. of Green Bay, Wiscoinsin, was recently featured in Business Week magazine.
According to Vasant Bennett, president of the company’s engineering services unit, PCMC turned to offshoring in order to slash development costs, win orders and keep their production operations in Green Bay. ”We can compete and create great American jobs,” says CEO Robert Chapman says. “But not without offshoring.”
Many executives are coming to realize that offshoring is actually about creating growth for U.S. companies. While savings in labor expenses can be significant when companies take advantage of a global talent pool, offshoring also results in substantial gains in productivity, efficiency, quality, and revenue.
The Heritage Foundation, a conservative think tank, also laid to rest some of the concerns about the reduction in American jobs due to outsourcing. The group reported that many organizations in other countries are also outsourcing to the U.S. According to the Organization for International Investment, the number of jobs outsourced to the United States has increased by 82% while the amount of jobs the United States outsourced overseas grew by only 23%. Moreover, jobs coming into America typically pay more than U.S jobs outsourced overseas.
The Business Week article went on to describe how such organizational transformations work, ”Genpact, Accenture, IBM Services, or another big outsourcing specialist dispatches teams to meticulously dissect the workflow of an entire human resources, finance, or info tech department. The team then helps build a new IT platform, redesigns all processes, and administers programs, acting as a virtual subsidiary. The contractor then disperses work among global networks of staff ranging from the U.S. to Asia to Eastern Europe.”
Former General Electric CEO, Arthur H. Harper, states, “Once this transformation is done, I think we will end up with companies that deliver products faster at lower costs, and are better able to compete against anyone in the world.” Such transformation cannot help but foster prosperity and create more jobs, both onshore and off.