Companies that outsource often site cost as the top reason. Outsourcing jobs is common in many corporations, although some rely on outsourcing more than others. A March 3, 2008, article in "Information Week" says that 49 per cent of U.S. technology companies with an annual revenue of more than £65 million outsource outside of the country. (see references 1) Customer service and manufacturing jobs are also routinely outsourced.
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AOL, formerly America Online, is one of the United States' largest Internet services and media companies. AOL not only provides Internet service but also owns and manages more than 80 websites to which it provides original content. AOL has been outsourcing software engineering jobs to India since 2004. (see Reference 2)
Bank of America
The banking giant has been steadily outsourcing jobs overseas for years. A 2004 article in "Business Review" reports the bank outsourcing more than 1,000 jobs to Hyderabad. A more recent 2006 article by David Lazarus on the SFGate.com says that not only did the bank take jobs away from American operations, the company implied that workers had to train their replacements or risk losing severance pay. (see Reference 3)
Honeywell outsources jobs to India, Europe and Mexico, and as of February 2008, announced plans to outsource in Malaysia and Indonesia as well. In 2008, the Tucson Citizen reported the aerospace company was cutting 420 jobs in the area, and in November of that same year, the Arizona Daily Star reported that Honeywell was eliminating 700 manufacturing jobs to move them to Mexico and the Czech Republic.
The jeans and clothing manufacturer has shut down all plants in the U.S. and Canada and moved plants to several places in Asia, the Caribbean and Latin America. The company, which helped make jeans almost synonymous with America, has no more manufacturing locations of any kind operating in the U.S.
Another all-American company that no longer makes its products in the U.S. is Radio Flyer. The company makes scooters, tricycles and, most famously, little red wagons. Radio Flyer completely outsources production of its metal wagons, trikes and scooters to plants in China.
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