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President Obama Introduces “Insourcing American Jobs” Incentives

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Insourcing American jobs

Guest Post by Ken Wisnefski:

President Obama plans to introduce an incentive-heavy program to bring American jobs back to the United States and reward companies that “insource American jobs.” The White House, in an official press release, announced the initiative and declared this a “call to action” by the President.

In an official statement, the President said Wednesday, “Today I am meeting with companies choosing to invest in the one country with the most productive workers, best universities, and most creative and innovative entrepreneurs in the world: the United States of America.”

As a successful entrepreneur and small business owner, I have found that keeping your staff and personnel in-house (versus outsourcing) leads to greater productivity, better quality of services, and increased communications and transparency. Many SEO firms outsource their work to overseas countries including China, India, and the Philippines.  It is less-expensive to outsource projects, however quality is severely compromised. WebiMax employs 150 personnel and takes a firm stance against outsourcing.

There is a trend in firms that “insource,” mostly limited to manufacturing and production. Real business-fixed investments have increased by 18 percent since 2009, indicating that businesses are expanding their operations and production facilities in the United States. As much as this is positive news, however, many businesses (notably in technology and financial services) continue to send workers overseas.

I go back to traditional “clear line of communications” in discussing the advantages of keeping personnel in-house.  First, due to differences in time-zones, it is very challenging to schedule conference calls in separate countries to collaborate and discuss projects. This break in the lines of communications can lead to lesser quality of goods and services. Not only can that, communicating in different languages add to the challenges. International communication investments can be costly and may make up the difference business owners save with outsourced work. Of integral components, small business owners would agree that communication is the single most important piece of the puzzle. Challenging your business to communicate effectively can compromise the quality of products.

The President plans to implement these incentives in his upcoming 2013 budget plan, due in the hands of Congress the first week of February. The Department of Labor indicated the U.S. economy added 100,000 jobs in each of the last six months.

Ken Wisnefski is CEO of WebiMax, an industry leading SEO Company located in Mount Laurel, NJ with over 500 clients and 150+ employees.

image by Getty Images

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  1. I would love to see this pass congress! With major corporations outsourcing millions of jobs this would definitely help our struggling economy.

  2. Robert Bonham says:

    Great article! I agree entirely, American businesses need to insource their jobs. I work for Allstate and we outsource our customer service to India, Ireland, and the Phillipines and the quality of the service and knowledge of the customer service reps suffers. I get very frustrated when I find I know more than the people I am calling to get information.

  3. I think the President is wasting his time on this, if you look at the freelance web site that is owned and operated in the US 95% of the work is outsourced to cheap labor in Pakistan and India who are making millions and not paying any taxes. These company is own and operated in the US do not care where the work comes from they are only interested in money.

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