John Jonas, founder of OnlineJobs.ph, argues outsourcing strengthens the U.S. economy by cutting consumer costs, letting domestic workers focus on higher-value jobs, and helping small businesses survive. As companies scale on lower operating costs, they hire locally and create new foreign markets for American products.
Chapters
Why outsourcing is good for the economy. So I have five reasons for you today. Why outsourcing is actually good for the local economy. Number one, outsourcing brings in cheap products. So think about Walmart. Like everything you buy at Walmart has been outsourced. It all comes from China. They're creating the products and they're shipping them here, and then you're buying them the other way around. All those products would be significantly more expensive. So it would cost you a lot more when you go to the grocery store if we didn't outsource. Now, that's good for the economy because now you're spending on groceries and products at Walmart, but you're also buying other things, which stimulates the economy. Reason number two is because it creates better products. You know, some people are just better at doing things than other people and that creates a better product so that other people can then focus on different tasks. So for example, Nike often has their products made in Bangladesh. In Bangladesh they have a lot of people who are really, really good at doing whatever Nike needs. Here in the US We've become better at creating systems around things and creating technology around things rather than being the ones sowing. We've improved our labor force. So outsourcing has actually improved our labor force here and has allowed them to do what they're good at and brought in a cheaper, better product because of it. So then reason number three is very different for why outsourcing actually improves the economy is because a lot of businesses wouldn't succeed without without it. And so you think about the small business failure rate. Well, what if we took the small business failure rate from 95% to 90%. So in the Philippines, you can hire a great customer service person for around US$500 per month and you can't do that here in the US Instead of not hiring someone to do customer service because you can't afford it now, you can hire someone to do customer service. Your business starts to succeed because the entrepreneur is able to focus on more important tasks rather than doing customer service. If the business starts to grow, that's good for the economy. And then number two, if the business starts to grow, he's likely to hire someone else, which may be overseas or maybe locally, which then stimulates the economy. Outsourcing can very often help small businesses succeed so that that person is not going back into the workforce looking for a job which is now taking a job from someone else. So outsourcing is good for the economy because it helps small businesses succeed and that leads into reason number four. Why it's good is because it often creates jobs. And I just described the situation where it does create jobs. And this is the case for me, where when I started, I wasn't able to hire locally because I couldn't afford it. And now I can hire locally. And I do hire locally because I can afford it. And so the fact that I was able to outsource and grow my business with their help from the Philippines led me to being able. Being able to be profitable enough to now hire people locally, which has now created jobs, which has been good for the economy. So reason number five then is a little bit different. When you outsource, you actually create a new market which will buy your product. So let me give you an example for this. Apple builds the iPhone in China, so they outsource it to China. And then Apple's number two market for buying iPhones is China. So do you think 20 years ago, China was buying technology devices like the iPhone without outsourcing? There's no way today, because so much has been outsourced to China, China's market has grown, and now they're buying our products from us. So outsourcing has been really good for the economy in that it has now created other marketplaces. I'll give you another example. I have a. I know someone who buys products in the US Ships them to the Philippines because the Philippine economy has grown enough because of outsourcing that they're now looking to buy US Products. They can't get them because we haven't shipped them there yet. But this person I know is buying them here, shipping them to the Philippines, and they want them. They want to buy these products. So it has created a new market that otherwise didn't exist before. There was no way they were buying US Products, and now they are. And so outsourcing is good for the economy because it creates other markets for your products. So those are five reasons why. Five reasons why outsourcing is good for the local economy. My name is John Jonas. I created OnlineJobs ph, which is the best place to hire virtual workers so that small business owners can get the help that they need and grow their business so they can then hire local workers or hire more outsourced workers so that they can succeed in their business.
