Outsourcing as a Political Issue

Although it has become a hot political topic, the definition of outsourcing remains a little vague. Different companies and economists - and politicians - use it to mean widely differing things. Outsourcing may be said to refer to any contracting out of any portion of a company's business to a third party. Nearly every company does this. A large company like Sears, for example, is likely to hire a printing company to produce its catalogues because it is more efficient and cheaper for a printing company to print a catalogue than for Sears to set up a print shop that it will only need a few times a year. Such contracting out of specific services that are not central to a company's major work has been standard since well before the Industrial Revolution and reflects basic business practices (and good common sense) about the utility of specialization and the division of labor.

However, the rate and degree to which American companies are likely to outsource work is growing today, and it is this increase in outsour

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