Organizations that outsource are seeking to realize benefits or address the following issues:

 Cost savings — The lowering of the overall cost of the service to the business. This will
involve reducing the scope, defining quality levels, re-pricing, re-negotiation, cost re-
structuring. Access to lower cost economies through offshoring called "labor arbitrage"
generated by the wage gap between industrialized and developing nations.
 Focus on Core Business — Resources (for example investment, people, infrastructure)
are focused on developing the core business. For example often organizations outsource
their IT support to specialised IT services companies.
 Cost restructuring — Operating leverage is a measure that compares fixed costs to
variable costs. Outsourcing changes the balance of this ratio by offering a move from fixed to
variable cost and also by making variable costs more predictable.
 Improve quality — Achieve a steep change in quality through contracting out the service
with a new service level agreement.
 Knowledge — Access to intellectual property and wider experience and knowledge.
 Contract — Services will be provided to a legally binding contract with financial penalties
and legal redress. This is not the case with internal services.
 Operational expertise — Access to operational best practice that would be too difficult or
time consuming to develop in-house.
 Access to talent — Access to a larger talent pool and a sustainable source of skills, in
particular in science and engineering.
 Capacity management — An improved method of capacity management of services and
technology where the risk in providing the excess capacity is borne by the supplier.
 Catalyst for change — An organization can use an outsourcing agreement as a catalyst
for major step change that can not be achieved alone. The outsourcer becomes a Change
agent in the process.
 Enhance capacity for innovation — Companies increasingly use external knowledge
service providers to supplement limited in-house capacity for product innovation.
 Reduce time to market — The acceleration of the development or production of a product
through the additional capability brought by the supplier.
 Commodification — The trend of standardizing business processes, IT Services, and
application services which enable to buy at the right price, allows businesses access to
services which were only available to large corporations.
 Risk management — An approach to risk management for some types of risks is to
partner with an outsourcer who is better able to provide the mitigation.
 Venture Capital — Some countries match government funds venture capital with
private venture capital for start-ups that start businesses in their country.
 Tax Benefit — Countries offer tax incentives to move manufacturing operations to
counter high corporate taxes within another country.
 Scalability — The outsourced company will usually be prepared to manage a temporary
or permanent increase or decrease in production.
 Creating leisure time — Individuals may wish to outsource their work in order to optimise
their work-leisure balance.
One major issue we face in America is that of outsourcing. Multinational corporations in
the United States are outsourcing to other countries using capital from American
consumers. America is missing two things right now, jobs and money, this is because
multinational corporations have been siphoning both out to other countries, or private
accounts. Another, less economic issue with international outsourcing is that we are
supporting cruel labor practices. America’s unions fought long and hard to secure the
rights they have in the country, forever battling their employers, and their need for
corporate efficiency. Finally, the workers were able to unite for long enough to ensure
that the national government would defend their rights. Unfortunately, their sacrifice has
now been reduced to nothing, as their employers drop them in favor of another labor
pool, which is outside the reach of our government, and our unions (often any unions).

What I propose is not new, what I propose is not radical, and what I propose is not
harmful to the American people. What I propose will bring jobs back to American
workers, will reduce American reliance on foreign trading partners, protect American
intellectual property, and pressure nations that refuse to grant labor rights.

What I propose is a tax on international outsourced unprotected labor.

Corporations outsource for many reasons, many of them legitimate business moves, but
the vast majority of international outsourcing is for the purpose of avoiding the rules and
actions of the government and the labor movement: tax evasion, quality control evasion,
contract binding, and labor exploitation.

While internationalism is great, and we should definitely compete and interact, in and
with the global economy; our interactions with other countries have ended up less than
beneficial to our side, most notably in China. Our economy is essentially on loan to us by
China right now, as we have been forged into a captive market for their products. Since
our major industrial trade with other countries, the quality of American products has
steadily declined.

Another issue with international outsourcing is the protection of American intellectual

property. Many countries that we trade with for their lax labor laws have similarly lax
anti piracy laws, and copyright laws, opening up any products we have assembled in
these countries to be reproduced at lower cost, bypassing not only the American
government, but also the American corporations, who developed the technology in the
first place.

If we want our progeny to see America at the forefront of world policy, and technology;
we must take full advantage of our workforce and obey the spirit of our laws.