by Jaimi Hemmerich

Created on: August 17, 2009   Last Updated: September 17, 2009

Sharon Otterman states in TRADE: Outsourcing Jobs, "Boston-based consultancy Forrester estimates that 400,000 service jobs have been lost to offshoring since 2000, with jobs leaving at a rate of 12,000 to 15,000 per month..."(Otterman, 2004, 4). To many, this is an alarming statistic. The very thought of another outsourcing revolution brings back recent memories of the flood of manufacturing jobs to overseas markets - the loss of jobs and the associated anxieties still fresh in the minds of the American public. Critics and supporters of protectionism rarely think of the advances that the movement of manufacturing jobs overseas prompted. Displaced workers were forced to further their educations which ultimately lead to higher paying, more crucial positions within the workforce. Perhaps there is a proverbial silver lining underlying this brooding cloud of apprehension, then - absolutely. Contrary to popular belief, outsourcing jobs to foreign countries actually strengthens United States businesses by promoting a global free-trade economy, increasing jobs and wages on our home soil, improving quality of life for workers and allowing companies to be more competitive in their respective markets.

Offshore outsourcing, foremost, fosters a global economic environment and promotes a free trade atmosphere that benefits our nation's companies, also benefiting the US economy. A free trade environment allows companies in the US to focus on sectors of business where they have a comparative advantage (Sperling, 2004). When companies are allowed to focus on niches where they are the strongest, they become more innovative. When companies are innovative, they are typically more open to reinventing themselves to stay afloat in today's aggressive marketplace. With increased concentration and improvement, companies are able to reinvent their structure, leading to more specific, productive goal setting. As a general rule of thumb, a strong focus makes for a strong company.

A free trade environment also helps to boost the Gross Domestic Product (GDP) by lowering operating costs. Lower operating costs allow companies to provide products to consumers at a lower price, leading to improved quality and increased production. In essence, lower operating costs lead to increased production and consumption at home, lowering the import rate. With the quality and quantity of consumer products on the rise, the value of US domestic products increases exponentially (Otterman, 2004, 6).

It is hard

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