This document outlines a contingency plan to contain outsourcing within the United States. It begins with an overview of the history and debate around outsourcing. The plan then details a multi-step process to pull operations back from foreign countries over 11-12 months. Key steps include identifying common outsourcing partners, transitioning contracts, hiring and training domestic workers, and establishing new laws against overseas outsourcing. The goal is to curb job losses while allowing businesses to still outsource but within the US. Careful management and oversight of the process is discussed to ensure goals are met smoothly.

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Denadre’Parker
ENGL 3880-003
Project3
May 4, 2015
Outsourcing Containment and Prevention
Arguably one of the most frequently debated topics to date, outsourcing is an ongoing
dilemma that involves taking jobs out of company hands (within and outside the US) and
resuming them overseas for cheaper. Many companies feel that outsourcing is a great idea
because it reduces costs for businesses; other companies feel that this is a hindrance to America
because it takes away jobs from those who need them in the country and gives them to people in
foreign places- to create a contingency plan that restricts outsourcing to within the United
States only by American companies, advantages and disadvantages must be established; from
this a concrete plan of action will be made to isolate outsourcing to our home front. This is
important to conquer in the near future before it gets out of hand, and we the united states lose
control of our most valuable assets; our businesses. If we do lose control we will crumble, and
the result will be catastrophic.
Outsourcing developed in the early 1970s when the first computers and computer
technologies were beginning to come around, and were utilized for business purposes. As
technology began to further advance, companies began to send off their raw materials to other
countries, not because of expert workers, but for the economic benefits. “U.S. manufacturers
began building factories in the South and overseas, where wages were much lower. The practice
accelerated in the 1970s, when a series of energy crises signaled the beginning of the end of U.S.
self-reliance in oil production — the basic fuel driving the U.S. economy. Rising energy prices
caused a series of recessions, and steel-automakers, and other manufacturers laid off thousands

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of workers” (Cooper, 2004). When it was later realized that labor costs were the main expense to
a business, and/ or company, that is when the idea of making products in other countries for
cheap really bloomed, thus creating the idea of outsourcing. “Before the end of the 1980’s
outsourcing went from just strictly payroll, to company functions, manufacturing, and
information technology “(Cantoriat, 2011). By the mid-1980s, rising production costs and
growing foreign competition forced more industries to start over. “Many companies made their
work forces smaller, especially in car factories. Others moved at least part of the production
overseas, either to lower-cost or non-union locations” (Cooper, 2004). The history of outsourcing
has not only made a possible means for some businesses to flourish, but it has also been fuel to
the fire. When it comes to the people of our nation and the economy, outsourcing is one of the
many things that have brought a lot of speculation and controversy. The heated debate of
whether outsourcing is more beneficial, or if it is one of the many things that are hindering our
nation from flourishing, can be addressed by looking at the advantages and disadvantages of the
situation.
There are some things that are good in outsourcing, and some things that do help
companies to stay afloat, and preserve themselves for years to come due to outsourcing.
Companies and industries feel that the idea of outsourcing is fine because they can produce the
products that they desire in foreign countries, for much less than at home in America. “Critics of
globalization claim that US manufacturing firms are being driven to shift employment abroad by
the prospects of cheaper labor. Others argue that the availability of low-wage labor has allowed
US based firms to survive and even prosper. Yet evidence for either hypothesis, beyond
anecdotes, is slim” (Harrison, A. E., & McMillan, M. S. 2006). These companies and
corporations feel that they are doing the right thing to make their businesses work, and for them

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to sustain, especially during these times. A company’s ability to expand their workforce to other
countries, have the supplies sent overseas, and pay less to produce those goods there, rather than
at home, allows for more potential profit within the business. Outsourcing has also brought much
controversy because it has contributed to the loss of American jobs to these foreign countries,
and industries taking their skilled jobs elsewhere rather than keeping them at home; providing
the people of our country with the opportunity to take those jobs and benefit from them so that
our economy may flourish again. There are good reasons for outsourcing, but there are also
many ways that it can hurt a country, and a business, or corporation striving to improve itself by
moving some of its business out of the country to these foreign places. There can also be an
obvious variation with the quality of the products made from other countries rather than at home.
The objective of the contingency plan is to effectively pull outsourcing from foreign
countries and contain it to American soil. Although this does not eradicate outsourcing, it is done
in America and we help each other as a country to accomplish prosperity. For the successes of
the plan to occur, these steps must be taken:
First we would need to look into our companies / franchises that outsource to foreign
countries and establish the more common and frequent places. This will give the project a
focused target for the duration of the containment process. This operation should take two weeks
to a month. Any figures, percentages, and of contact information would be pertinent to refining
this search into all companies and countries involve. Also, an assessment of the severity of
primary outsourcing projects would be helpful. One company may need more assistance than
another.
Secondly, logistics departments of these companies will have to contact foreign services
and forewarn of the change in operations. Foreign companies can be contacted via mail, video

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conference, or any form of communication. The purpose of this step is to exchange contact
information: as well as, give a detailed overview of the upcoming changes that are underway/
will occur. This step of the process should take anywhere from two weeks to two months.
Third, we begin to shut down outsourcing operations. This includes cancelling of
upcoming orders and beginning to fulfill them within our borders. This also means that contracts
will have to be canceled, and even bought out. Expectations are that some will not be able to get
out of these contracts, and have to fulfill them before exiting the foreign country. Fellow
Americans will need to be hired and trained to acquire the skills needed to perform these
functions; thus, bringing jobs back to the states and reducing unemployment rates, the process of
hiring, and training employees as well as pulling operations out of foreign countries should take
another three to five months.
Finally, the last step would be to revamp or create more laws against outsourcing and
prevent the outsourcing overseas. This may include stiff penalties such as tremendous fines or
further restrictions placed on the business, to even company termination at the worst. If there
were a strict regulation that would deter the outsourcing, people would be apt not to attempt to
do so. There will always be someone to try and beat the system and that is why the new
regulation would need to be air tight and have a hefty penalty if violated, this final process
should take two to three months. Now that we have talked about the overview of the plan, we
also need to discuss the resources of the project and its logistical factors.
This contingency plan will take eleven months to a year to fully undergo. The timing of each
logistics department will need to be known as well as the steps that they are undergoing. Time
spent working on this project will be done during normal business hours where normally a
logistics department would be acquiring outsourcing reports and having meetings, check ins,

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and updates of overseas companies. Since there are already hired, trained, and highly skilled
employees that already know about outsourcing, there is no need to hire further people in the
company until the step of hiring for jobs. Companies already have a legal team and logistics
sectors established. Keeping sectors and formats that companies have as normal as possible is
important to keep a regulated flow and cooperative teamwork going.
Money may be necessary to pay for final shipments and to buy out contracts that have long
term deals that cannot be terminated. Money could also be returned in foreign currency and need
to be exchanged. I would say that a budget of $500,000 would be a healthy safety net for the
processes, along with government aid if necessary. Companies may already have storage space
to store goods as they did when they were outsourcing as well. The final shipments of the
products, and materials will be placed in these storages as they would in the normal process.
These will just be some of the last shipment’s that will be received from overseas.
Each contract breakdown as well as a removal strategy from each company should be known.
Any long term payments or removal contracts, and/or stipulations should be known to know
exactly how to handle the move and what it will take to be done smoothly.
In all businesses, projects, etc. things can and will possibly go wrong. Here we will go over the
countermeasures to avoid these issues.
In an event that an individual is sick, we will have multiple cross- trained employees that can
do other tasks. Deadlines can be missed as things happen, but need to be completed as soon as
possible; all steps are contingent upon one another. Companies could also refuse to cancel
contracts. The way to beat this issue is to just finish out the contract, and end any affiliation with
outsourcing to that company or country overseas. With all of the things that happen on the job, as
well as adverse consequences, it is important to know who is in charge (management of the

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project) , and how the plan will be learned by all individuals involved. Last but not least we will
talk about the management of the action, and review of the plan. All interactions with overseas
companies should legally be recorded (phone call, video conferencing, etc.) Each stage should be
reviewed after its completion to ensure that everyone understands the tasks before, during, and
after their contributions, and the general process. Supervisors, CEO’s and managers should
overview the operations and ensure that the desired results are reflected by the actions and work
of their employees. The progress of the contingency plan should always be monitored to prevent
adverse consequences that can be avoided by skilled, quality work. Debriefing of the plan is
pivotal to make sure that all persons involved know what is going on. This will enable everyone
involved to begin with the end in mind. Each individual will know exactly what is expected of
them for the next year. Each logistical team will be split into the four steps listed. After each
individual step, those people will be there with further assistance for their fellow colleagues to
help move the operation forward. All operations will be overseen by management until the goal
is met: Containment of outsourcing to our home front, the United States.
Outsourcing has been one of the most controversial topics of American businesses to
date. The process that helps businesses to get a slight advantage also takes jobs away from those
who need them in America. After the assessment of both advantages and disadvantages, the
hope is that this contingency plan aids in the health of our country’s economy, jobs , and not
businesses trying to make a quick dollar. It is not about one business; it is about the wellness of
the nation.

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Works Cited
Cantoriat, C. S. (2011). History of Outsourcing. Retrieved from
http://www.brighthub.com/office/human-resources/articles/100143.aspx
Cooper, M. H. (2004). Exporting Jobs. CQ Researcher, 14, 149-172. Retrieved from
http://library.cqpress.com/cqresearcher/
Harrison, A. E., & McMillan, M. S. (2006). Outsourcing Jobs? Multinationals and US
Employment. Retrieved from website: http://www.nber.org/papers/w12372