In the world of business, cutting costs in order to increase profits is all that matters. In order to decerease costs, many companies are shipping their jobs overseas to take advantage of cheap labour (due to countries like China and Vietnam outlawing unions and having little to no labour laws) and to get access to foreign markets. This outsourcing comes at a cost to company morale though.
A perfect example is Boeing. Edward S. Greenberg, Leon Grunberg, Sarah Moore and Patricia B. Sikora wrote: “The very innovations and changes Boeing introduced to remain a leading producer of airplanes — altered management strategies, pervasive technological changes, extensive outsourcing, broad global partnerships, massive layoffs, and drastically altered ways of working — produced stress and turbulence in the lives of workers and managers alike.”
Boeing 777
The culture of Boeing has changed from being a “family, where employees’ contributions were respected as a source of competitive advantage, [to] Boeing as a teamwhere people and positions were expendable or interchangeable with other workers around the world”. This culture change makes employees value their jobs less and, therefore, decrease their productivity or leave the company. In the end, outsourcing could actually hurt the company more than it could cut costs.