Government Pushes To Lower Outsourcing Rate

Released on: September 14, 2008, 8:40 pm

Press Release Author: Abbey Grace Yap / US Contact Point

Industry: Advertising

Press Release Summary: With more and more industries venturing into outsourcing
services to eastern countries like China and India, presidential candidates Barack
Obama and John McCain are looking for ways to encourage business to ditch
outsourcing and promote on-shore hiring.

Press Release Body: Presidential candidates Barack Obama and John McCain have both
take their stand on the subject of outsourcing in their respective campaigns.

Barack Obama suggests restructuring incentives in order to encourage more companies
to keep jobs on-shore and generating more job openings in new industries that cannot
be outsourced. On the other hand, John McCain advocates giving massive training
programs and other forms of public assistance during the training period.

The important thing to take note of now, is understanding the different kinds of
jobs that cannot be outsourced. This will further help in understanding Obama's
proposal and seeing the long-term effect of McCain's proposal.

Jobs based on data and manufacturing are not the type of services that cannot be
outsourced. Data is pretty simple to send to and from a service contractor to an
outsourcing company abroad through the Internet. The same goes with the
manufacturing business, products can be sent abroad and sent back into the country
after assembly.

With this in mind, three basic jobs are left:
1. Infrastructure building / general construction
2. Government positions
3. Certain personal and professional services

Now that we're able to determine which jobs are outsource-able and which ones
aren't, we can differentiate McCain's and Obama's approach on how to promote

McCain's policy is geared towards getting information-based jobs that require
intensive training. On the other hand, Obama's plan is quite the opposite of that of
McCain's. Obama believes that by revising tax incentives, more jobs will be able to
return and remain onshore. Obama wants to invest more on infrastructure, believing
that this industry does not require much education and retraining.

With McCain's approach, there is not much opportunity opened for on-shore employment
because the plan does not make a significant difference to today's offshoring. This
will be creating job openings with higher wages which corporate investors can get
offshore for a cheaper price.

Obama's take on offshoring appears to be more favorable for the working population
because with the incentives of offshoring taken out of the picture, more jobs may be
kept open on-shore. Plus, opening labor-intensive jobs that cannot be outsourced can
give employment opportunities to workers who have been affected by the recent
housing crisis.

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Contact Details:
Phone: 866.651.0999

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