Sunday, May 13, 2012

The US' Biggest Export: Jobs! -- Outsourcing And OffShoring

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This embedded photo was proudly produced in the USA using legal citizen labor!

Recent data would indicate that large U.S.-based corporations are creating jobs and employment opportunities. The catch (in reading the unwritten fine print) is that most of these jobs are being posted and filled overseas [either "outsourced" or "internationalized" - a Lingovation] and not domestically.

This is lamentable, in that it produces no new on-shore jobs or disposable personal income in the United States, further starving its economy. But is an inevitable result of global market forces at work. Productivity is more cheaply sourced overseas, while expanding international consumer and B2B markets are increasingly becoming the focus of product and service development, promotion, advertising and selling efforts. The combination of these two effects is turning the US into something of an offshore jurisdiction, subsisting on its market cache and history of innovation.

The following article excerpt appears courtesy of SmartBrief, an excellent informational resource for a great number of vertical industries and a frequent resource for The Internationalist Page Blog, as well as for The InfoSphere Business Alerts And Intelligence Blog. After you've viewed the article, please click the back arrow on your browser to return for some further considerations and the potential impact which this might likely have on every US-based company - as well as actions which you can proactively take in order to mitigate potential losses and maximize your profit opportunities.

If we add the US taxation, regulation and reporting requirements to this mix of major trending factors, The Global Futurist Blog would predict that the US is heading toward a de-industrialization, a de-consumerization and an increasing exodus of talented minds, workforce participants and company domiciles.

Analysis: Most new jobs at U.S. multinationals are overseas
Big multinational corporations headquartered in the U.S. are creating jobs faster than other employers, but 75% of those positions are overseas, according to an analysis by The Wall Street Journal. While the 35 firms analyzed added 113,000 workers to their U.S. payrolls between 2009 and 2011, they hired more than 333,000 employees in their foreign operations, the newspaper notes. The Wall Street Journal (4/27)


The truth is frightening, and the associated trends are accelerating. What are SMEs to expect, and what are they to do, based upon this information?

Of course, there is no simple answer, but there are some practical strategic moves which you might make:

1) Start investigating global markets for your products or services. You can obtain some excellent information through the Small Business Administration (SBA) about exporting, international financing, and global agent-distributor service;

2) If you are U.S-based and provide low-skill level support services, prepare to be outsourced by your clients or customers by adding value to differentiate your service (to lessen pricing as a deciding factor between your firm and firms overseas), or by pre-emptively outsourcing all of part of your service - in this way, you can offer varying quality "levels" of service in a menu fashion;

3) The "made in the USA" label carries some weight, both domestically and overseas, but in a troubled worldwide economy, be certain that your value proposition makes competitive sense in terms of either its being a) of superior quality and/or unique attributes; or b) of a custom-created nature and/or marketably-branded for very wealthy individuals who purchase based upon criteria which don't relate to bargain-hunting or saving money. 

Douglas E. Castle for The InfoSphere Business Alerts And Intelligence Blog 

The Internationalist Page Blog 
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