Outsourcing has been a common practice for centuries, but it wasn’t until the 1970s that the United States began to actively engage in outsourcing on a large scale. There are several factors that contributed to this shift in policy, including advances in technology and the globalization of economies.
One of the key drivers of outsourcing in the US was the rise of offshore manufacturing. With the advent of new technologies like computer-aided design (CAD) and computer-aided manufacturing (CAM), it became possible to produce goods more efficiently and cost-effectively than ever before.
This led many companies to outsource their manufacturing processes to countries with lower labor costs, such as China and India.
In addition to manufacturing, the US also began to outsource a range of other services, including software development, customer service, and research and development. This was driven in part by the growing importance of information technology (IT) in modern business, as well as the increasing globalization of markets and competition.
Despite some initial concerns about the impact of outsourcing on US jobs and industries, it quickly became clear that there were many benefits to be gained from this new approach. By outsourcing certain processes, companies were able to reduce costs, increase efficiency, and gain access to new skills and expertise.
This allowed them to remain competitive in an increasingly global marketplace and ultimately led to the creation of new jobs and industries in the US.
In conclusion, the US began outsourcing on a large scale in the 1970s, driven by advances in technology and the growing globalization of economies. While this shift may have been controversial at first, it ultimately proved to be a successful strategy for many companies and helped pave the way for the modern, global economy.