Outsourcing emerged in the financial arena in the 1980s and has been widespread ever since. Production outsourcing has been favored by the globalization process which has provided a new component that has led to the strengthening of resources, skills and specializations of work throughout the world. The outsourcing process uses the skills and capabilities of a third party to accommodate the company on the basis of the work. As stated earlier, it was during the 1980s that the process got underway, primarily through the efforts of companies that began hiring workforces around the world. Even though outsourcing has exited its developmental stages, there are still effects on the American economy. Since the concept of outsourcing was introduced it has been the subject of debate among politicians and citizens in the United States. Surprisingly, it was the United States that supported outsourcing and now it is the United States that feels its economic progress is threatened by outsourcing. It could be argued that the financial situations that existed two decades earlier are not the same as today, so as time has changed, the economies' business priorities have also changed. Contrary to the widespread belief that outsourcing threatens the US economy's jobs, it has been seen that companies have been able to derive a multitude of benefits through outsourcing which in turn has created a number of business opportunities. I work together with it. When the stock market crashed; companies began to raise warning signs, and companies began to cut labor, with the result that unemployment began to rise sharply. In times when the recession was reaching its peak, the only alternative was to look for cheap labor and... middle of paper... these serious shortcomings of the predicted economic models do not seem to be resolved filled with a concrete financial recovery and managed effectively in terms of exploring new job opportunities, stabilizing the local market and supporting efforts provided to work through outsourcing initiatives can only remain and exist as a theory. In conclusion, it is appropriate to say that outsourcing remains a matter of concern to our government as well as the people of the United States. Many people think that companies that indulge in the practice of outsourcing should be blamed as they rob the government of its revenue, but they must be respected because they keep jobs locally. On the other hand, there are those who argue that the temporary loss of jobs resulting from outsourcing will ultimately translate into greater economic development of the country..