Economics

In a world like today where everyone wants to have the most economical means of attaining goals and realizing targets, it is but no wonder why companies, employers, and business owners look for alternative means to cut down on costs to augment their income not to mention the most prevalent option of most companies nowadays, the so-called outsourcing.
    Outsourcing typically means that a company would opt to have a particular job or process be done by a third party company. A third party company may be in the same locality with a cheaper labor cost, and the like, or one across the ocean (oversea) like in the case of most call center services and manufacturing firms.
    On the employers perspective, this can be very advantageous since it can cut down costs, like overhead costs for instance, thereby increasing the margin. Companies will have lesser expense on the benefits for their workers since they can already survive with a considerably few people.
    As a result, this can bring about a possible negative economic drawback on its community. This can create an impact of lesser employment opportunity for the area of the company which adapts outsourcing. The idea of patronizing local talents of the productive workforce is being neglected thereby increasing the population of the unemployed individuals for that locality. Companies tend to adapt and prefer foreign talents and skills (from the third party company) over local ones since they could save up on their expenses.
    Looking at another possible effect of this scenario on the behavior of the youth, this could somehow create an atmosphere of confusion and perhaps, a source of panic, for most individuals who are about to pursue a field of specialization in college. Many will get confused on what particular field of study would still be able to give them immense chances of getting employed. Accordingly, a particular individual may have a negative outlook on pursuing college degree, thinking that there will still be a big possibility of being unemployed even if heshe has graduated in college.
    Outsourcing may also heighten the competition in a particular business arena since more and more graduates are produced every year and yet there are only a few job vacancies offered to them. A graduate may be strained on getting on a particular job even if heshe is overqualified due to a strong need to have a source of income. As a result, this would increase the unemployment rate and underemployment rate.  This may even lead to a chain reaction on its economy.
    Hence, outsourcing both has advantages and disadvantages on the economy. This has created positive global economic effects yet along with it, comes domino effects on its local economy as well.