In his article, “Protectionism’s the wrong response to outsourcing,” George F. Russell asserts that most fears regarding outsourcing which can cause Protectionism are unfounded and caused by lack of information or misinformation. Those arguing for Protectionism insist that outsourcing will decrease jobs.

Truth is, outsourcing spurts growth in businesses, thereby actually creating jobs. Russell cites a McKinsey & Company study which states “that roughly six new jobs are created for every five lost to outsourcing, and the new jobs are generally higher-paying.”

Outsourcing is also important in being competitive with the global market. The longevity and survival of most companies depend on how competitive they can be in terms of prices. In order to be competitive in terms of price, one has to keep costs low.

Outsourcing your company’s basic functions and services would allow your company to hire qualified labor, yet keep down costs. Outsourcing also results in costs of office space rental and maintenance. Hence, outsourcing decreases the cost of labor and operations long term.

It also allows the company to focus on the more essential functions and services and on growing the business. Outsourcing can lessen costs and allows for growth, while keeping prices low. With these factors in play, businesses grow and more opportunities and jobs become available to locals.

While there are many perceived disadvantages to outsourcing, it’s impact on the business and its locality far exceed these issues.