Friday, August 10, 2012

The Impact of SEO and Outsourcing on the US Economy

Copyright (c) 2010 Nick Clipton

The current practice of SEO and outsourcing to offshore companies has met a lot of criticisms from disgruntled citizens and politicians alike. They espouse the 'hire local' policy of employing Americans to do the website programs. However, economists and CEOs have defended their decisions in hiring offshore contractors as the logical move for their companies to cut operations costs and lower capital output.

The reason that SEO and outsourcing is now very popular is because of several things, but the main reason is really the money involved. For half the price and without having to deal with complicated regular workforce demands, the services provided are at par, competitive, and provide excellent results which increase the website traffic thereby increasing sales and revenues.

Specialized service professionals are now looking at their jobs getting out of the country in a large scale basis. With today's economic difficulties, it is now harder for them to recover their jobs and this is a real concern.

For the CEOs, it is the bottom line that makes their decisions for them. The pressure from investors to increase profits is constant and if they could save more than half in labor alone, then they will overlook all else. This way, with outsourcing, the payment will only be based on the number of hours spent working and bonuses are not even discussed.

For websites that need a lot of article content, the projects can be outsourced in bulk which the firms are just willing to do, even if the price is in cents rather than the full dollar. This is not seen and heard of if employing American service personnel.

It may sound like a cutthroat kind of deal, but unfortunately, reality bites. Constant pressure to increase sales in an economy that has fallen short on its promises has led to the success of outsourcing.

Furthermore, these companies have to deal with money all the time and the demands of union members increase as the economy slumps further. The companies have no other choice but to turn to an alternative source to keep their business going. They would rather outsource and get the same results without having to deal with the complications of a regular workforce for less capital output.

It is unfortunate that the outsourcing is really affecting the US economy negatively, but the companies could not be blamed. In the end, it is the numbers which will affect the decision making, and if the numbers say that outsourcing will keep the company in the black, then that is the road to follow.


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