Outsourcing is bad business
May 4, 2026
When we hear the term “outsourcing”, we might only think of offshoring—the practice of shipping American jobs out of the country. But outsourcing is much more than that. It also includes the subcontracting of jobs that were once done in-house to the lowest bidder and the privatization of our public services. And increasingly employers are attempting to outsource work through automation or replacing jobs with artificial intelligence (AI). Outsourcing in all its forms is the result of poor management and destroys middle-class jobs, our communities, and the quality of products and level of services.
The decision to outsource, is management’s decision to chase excessive corporate profits at the expense of people, the local economy, and the quality of goods and services provided to the public. Offshoring jobs overseas and the outsourcing of work to AI outright eliminates good middle-class jobs. Domestic outsourcing transforms quality jobs into independent contract work that lacks a decent salary, benefits, and retirement security. Outsourcing through the privatization of public services cuts wages, lowers access to health care, and increases turnover.
When jobs are sent overseas or outsourced to robots, the community suffers as money is stripped from the local economy. When good jobs are outsourced domestically by employers attempting to boost profits, pay and benefits decrease and the end result is a shrinking middle class. Privatization of public services worsens inequality by creating a race to the bottom on labor costs and undermining critical public services needed by the most vulnerable members of our communities.
Put simply, outsourcing is bad business. Chasing cheap dollars to pad the bottom line through outsourcing sacrifices longterm quality of products and services. Giving up local operational control to a sub-contractor interested more in maximizing their own company’s profits over providing quality output has a negative impact on customers. Outsourcing the skill, knowledge, and experience of dedicated in-house employees that are committed to quality work leads to a poor product and reduced service levels. The end result is that customers and the public suffer.
As Teamsters we fight with full force against outsourcing of all forms and are committed to standing up to these bad business practices. Local Unions across Joint Council 7 are working every day to protect Teamster work and keep good middle-class jobs in our communities.
Whether at the bargaining table, in the legislature, or on the streets — the fight for good family supporting jobs is at the heart of what we do as a Union.
