The China’s economic booms which has a direct tie with the United States recent outsourcing movement. This presents the question that many Americans have: Are domestic companies fueling China’s economy by outsourcing jobs that would otherwise be kept in America? The evidence show that United States outsourcing is the backbone of the new and ever growing Chinese economy. It just means that America plays an important role on the economy of China nowadays.
According to The Associated Press, China saw an economic growth of 11.2 percent in the fourth quarter of 2007. The China is closing bin on Germany as the world’s third largest economy. The China is seeing not only wage growth but something that the country has never seen, a middle class. The majority of the middle class are workers in factories. Most of these factories are in turn owned by United State companies. Many believe that foreign investment is fueling China’s growth because China’s low wage work force tends to be more skilled, higher educated, and better disciplined.
The United State companies have a motive to outsource so many jobs. The United States of America stands by the fact that outsourcing benefits not only the company but also the consumer itself. The advantage for the companies in the United States to outsource is that they can operate without having to worry about environmental efficiency. They are not bothered because they know that they cannot harm the Mother nature while most factories in China have to meet severely lower standards than factories in America.
The reason why some of the companies move to outsource to China because of its weak pollution laws. Outsourcing is not only China, but the rest of Asia will continue to grow and evolve in the future. There is also a wide belief that outsourcing in China will move to wards technologically advanced goods and services. There is already a seen evidence that the amount of Information Technology outsourcing is beginning to increase in the country. Information Technology outsourcing is becoming so attractive. That is the reason why most of the the Chinese companies are starting to outsource to domestic outsourcing firms.
Chinese securities firms are expected to spend 70 million on domestic Information Technology outsourcing by 2011 alone. Chinese companies are also using money made off United State outsourcing to make new investments in the country. Outsourcing started by American companies investing in China. Now, the investment flow has begun to reverse and Chinese companies are using money made from the outsourcing to invest in America.
Asian countries are beginning to follow China’s lead in the outsourcing movement. One of the most attractive new locations for outsourcing is Vietnam. Many experts see Vietnam as becoming a primary location of technology outsourcing. The feud over the principles behind outsourcing will continue no matter what the future entails. The outsourcing helps the economy and the industry of country. Companies want a better and a good development in there business, so that the solution is outsourcing.
