Offshoring Concerns.

Offshoring jobs results in a net loss of jobs here in the USA if you are assuming the businesses, which offshore, could survive without offshoring. However, if you look at the global job market, offshoring jobs has resulted in a net gain of jobs. Judging simply from my own experiences, for every job lost in the USA at a minimum one is created elsewhere and I think I would be conservative if I said for every job lost in the USA due to offshoring at least two are created. The job loss issue really comes down to your perspective; international or national.

I have yet to run into any statistics that indicate how many jobs would have been lost, if a companies had not offshored their work. How many businesses would have gone out of business and let go of their work force if they had not offshored a portion of their workload? What would have been worse, the businesses going out of business or the current net loss of jobs nationally?

Generally speaking most Americans, if presented with an equally good and priced product/service from the USA or China, would probably select the product/service from the USA. However, reduce the Chinese product/service price by 50% or more without any quality loss and most Americans would probably buy the Chinese product/service. All you have to do is remember the entrance of Japanese electronics and cars into the US economy as an example.

Nowadays many governmental entities are trying to restrict offshoring jobs. In some cases, the entities are justifiably concerned about security. However, in other cases the entities are simply concerned about the loss of jobs. The restrictions created based on the concern for job loss more than likely will have negative long term impacts that exceed any positive impacts their restrictions may have currently. 

Governmental restrictions limit free trade. If the USA restricts trade, why would other nations not restrict trade with the USA? If the USA were to approach, India, for example, and announce restrictions on offshoring jobs to India because of job loss in the USA, the Indian government probably would restrict USA imports simply so the Indian economy would not be as hard hit by the loss of offshoring jobs from the USA. This situation is obviously a lose-lose situation.

The India government is probably well aware of our security issues and accepts the restrictions placed on these types of projects and/or strives to find ways to minimize our concerns. 

I realize there are many people who would argue the USA has relatively free trade with various nations, which in turn restrict trade with the USA. In other words the trade is not free and "fair". I guess I do not believe in "two wrongs make a right" so I would argue that these nations will harm themselves more than the USA being harmed by them. I would argue the USA should lead by example and not by "bullying" or "force". 

Erik Scheller is a Registered Professional Civil Engineer in the State of California, Returned Peace Corps Volunteer, Rotarian, and founder of International Drafting Design Source (http://www.IDDSource.com), an engineering and architectural drafting and design collaboration outsourcing service, which facilitates relationships between engineering and architectural firms with other engineering and architectural firms worldwide. He has lived half of his life overseas and has a passion for travel and experiencing new cultures.