The Fact Remains: Outsourcing is a Reality for the 21st Century


Consultants Corner News Consulting Manufacturing Clothing



By:  Bruce S. Berton

No matter which Administration is in office, the fact remains that outsourcing is here to stay.

I could go into lengthy discussions on this subject, both pro and con, and would never satisfy either side. My answer is simply that we are a Democratic Republic, with a capitalistic economy, in a very competitive marketplace.

We pay individual taxes as well as corporate taxes in order to produce the services that our society needs to maintain a 21st century standard of living for all Americans. Since we are a democratic republic, representatives make decisions on our behalf, and the question arises, For whose interests?

If one wants to criticize our success or failure in this area, we only have our own non-participating attitude to blame. 

The fact remains that the consumers control and have the freedom to spend their money as they see fit. Also, we have national media of every type extolling the perceived values of products every minute of the day.

The fact remains that we have easy access to purchase products at all levels of distribution.

The fact remains that we have choices far beyond what other countries have. 

The fact remains that our economy thrives and grows on credit availability, not cash.

The fact remains that creating economic marketplaces in other sovereign nations tends to enhance peaceful coexistence.

The changes in our economy from the production of goods to a service product economy were not easy. Education, especially from the 9th grade through high school, community colleges, technical schools, and university programs, did not  keep up with the times.

Factual information and the execution of business plans are vital to survive in our marketplace. With all of this information available, the question arises, Why are we seeing financial failures where we once saw solid brick and mortar institutions?

We see MBA's trying to figure out how to make a living; they only knew how to gather information, not what to do with it and make money. Shareholders demanded returns on investment, corporations did not reinvest into technology, and now have uneducated, untrained, potential employees graduating from our schools.

These are just some of the misguided tax dollars not in sync with the changing global society and the competitive global marketplace.

The fact remains that in our marketplace, you must have the correct COST, the QUALITY specified, and the ON TIME DELIVERY to the consumer to make the SALE.

Our government, under both administrations, has worked hard to establish free trade agreements, allowing the consumer to have many choices in their purchases.

Can we do a better job of enforcing  these trade agreements, to keep the playing field equal, and to assure the American public and forewarn our trading partners that the U.S. government is determined to use available resources to combat unfair trade practices?  You betcha!

Can we do a better job speaking out on the benefits of outsourcing and global trade, and use our tax dollars to assist in the retraining of those jobs affected?  Of course!

It would be much better for industry to work closer with government and academia to project what will be needed and what will eventually be eliminated in the employment arena.

We must realize that outsourcing is a plus and will become an even bigger plus for our economy in the long run.

However, we must take the responsibility to assist those that might be left behind, and to prepare together as individuals, corporate executives and government to increase the opportunity and the dignity of employment.

We are not going to build a wall around our U.S.A. -- this I will guarantee.  So, with this information, the fact remains that outsourcing is here to stay.

Bruce S. Berton is a business and management consultant with Stonefield Josephson, Inc., a leading regional consulting and accounting firm with offices in Santa Monica, San Francisco, Walnut Creek and Mexico City. The information in this column is of a general nature.  Readers inquiries are welcome; and may be sent to Bruce Berton, at Stonefield Josephson, Inc., 2049 Century Park East Suite 400 Los Angeles, California 90067 310-432-7437 Direct
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