Outsourcing in a Troubled Economy

In some of my posts and questions here and on www.linkedin.com I am finding some interesting comments about the demerits of outsourcing to another country when the US economy is in shambles and a record number of US worker are unemployed. (Although look specifically at computer and high-tech jobs at an all time high in the US, which debunks the myth that outsourcing was destroying US job opportunities. This needs to be investigated to truely understand the numbers.)

I completely understand US employees concerns about job loss and why should companies outsource more jobs when so many are unemployed, right?

One thing that seems to get missed, and as a former business owner, I recognize.

Companies choose vendors / partners with skills and resources that fit their budget and constraints. Not all companies are looking to cut their US labor force and replace them with overseas contractors. Some companies, also concerned about their own survival in this economy, dont want to take on new employees when they can hire a contracting partner which can be "downsized" with a lot less pain.

So they choose to hire a contractor. Most Americans wouldn't argue that contractors are another form of outsourcing. Now, when the contractor is in another country, then some people get upset. I understand. I've been there. I used to work in IT outsourcing in the US and was easily replaced by eager Indians who were willing to work for half my salary and twice the hours. How do you compete with that?

What I'm saying is that some companies want to expand, cant afford the risks and costs of US labor and choose to accept a partner in another country. when the project is up, the company simply tells the vendor, "good job, thanks, and maybe we will see you again."

No firing, no downsizing with severance. Trust me, business owners DO WANT TO CREATE JOBS. This is a source of pleasure. But closing the business due to non-profitability, and firing people is a source of pain for business owners and it wouldnt do anyone any good, especially the workers who get laid off because the company closes its doors.

Does this make sense?