Companies that outsource often site cost as the top reason. Outsourcing jobs is common in many corporations, although some rely on outsourcing more than others. A March 3, 2008, article in "Information Week" says that 49 percent of U.S. technology companies with an annual revenue of more than $100 million outsource outside of the country. (see references 1) Customer service and manufacturing jobs are also routinely outsourced.
AOL, formerly America Online, is one of the United States’ largest Internet services and media companies. AOL not only provides Internet service but also owns and manages more than 80 websites to which it provides original content. AOL has been outsourcing software engineering jobs to India since 2004. (see Reference 2)
Bank of America
The banking giant has been steadily outsourcing jobs overseas for years. A 2004 article in "Business Review" reports the bank outsourcing more than 1,000 jobs to Hyderabad. A more recent 2006 article by David Lazarus on the SFGate.com says that not only did the bank take jobs away from American operations, the company implied that workers had to train their replacements or risk losing severance pay. (see Reference 3)
Honeywell outsources jobs to India, Europe and Mexico, and as of February 2008, announced plans to outsource in Malaysia and Indonesia as well. In 2008, the Tucson Citizen reported the aerospace company was cutting 420 jobs in the area, and in November of that same year, the Arizona Daily Star reported that Honeywell was eliminating 700 manufacturing jobs to move them to Mexico and the Czech Republic.
The jeans and clothing manufacturer has shut down all plants in the U.S. and Canada and moved plants to several places in Asia, the Caribbean and Latin America. The company, which helped make jeans almost synonymous with America, has no more manufacturing locations of any kind operating in the U.S.
Another all-American company that no longer makes its products in the U.S. is Radio Flyer. The company makes scooters, tricycles and, most famously, little red wagons. Radio Flyer completely outsources production of its metal wagons, trikes and scooters to plants in China.
- Photo Credit Justin Sullivan/Getty Images News/Getty Images
What is Outsourcing?
Not all jobs can be performed in house, and most businessmen these days know that. That's why outsourcing has become so popular....
Why Do American Companies Outsource?
Outsourcing is a controversial and polarizing issue. American companies argue that outsourcing is critical for survival. On the other hand, 71 percent...
Why Do Companies Outsource Manufacturing?
Outsourcing is controversial because it is sends jobs and money from the home country to the outsource country. There are specific business...
Job Description of Outsourcing
Outsourcing is defined as a company agreeing to a contract with a separate entity in order to provide services that are not...
How to Start an Outsourcing Company
Companies in developed countries are increasingly likely to outsource services that were once performed in their home countries to companies in developing...
Outsourcing Risks on Companies
Often, a company will choose to assign some of its tasks to outside parties, often parties from other countries. This is known...
Types of Jobs Being Outsourced
One method companies use to cut costs is to outsource jobs to third-party companies, paying cheaper rates for the same services that...
The Tax Benefits of Outsourcing IT
Outsourcing has been a controversy for several years in this country. Companies that outsource employment have long been demonized as anti-patriotic or...