Former President Donald Trump promises to end outsourcing once he wins the presidency.
Trump made the statement as part of his 2024 Republican Party platform, which includes 20 pledges to “Make America Great Again.” The platform promises to “stop outsourcing and turn the United States into a manufacturing superpower.”
Republicans pledge to uphold Buy American and Hire American laws and ban businesses that outsource jobs to foreign countries from interacting with the government. Their “forward-looking agenda” promises to turn the U.S. into a manufacturing superpower, resurrect the American auto sector, and restore vital supply chains.
The platform also states that “Republicans will restore American manufacturing, creating jobs, wealth, and investment” by protecting the American workforce from unfair foreign competition and unleashing energy production from all resources, including oil, natural gas, and nuclear power.
How will the U.S. outsourcing ban affect global markets?
Trump’s statement has broader implications worldwide. Outsourcing is projected to reach $75.89 trillion by 2027; however, such drastic changes in the U.S., the largest offshoring market, will likely affect the global economy.
About 66% of U.S. companies outsource at least one business function, leading to around 300,000 U.S. jobs being contracted out every year. In addition, the U.S. generates the most revenue in the global business process outsourcing (BPO) industry, with a projected income of $146.30 billion in 2024.
If Trump wins the election and bans offshoring, it will severely affect service provider countries once businesses pull out. The top countries that U.S. companies outsource to include India, China, Mexico, Brazil, Poland, and the Philippines.
As the leading country for outsourcing, India’s multibillion-dollar industry relies heavily on its clients in the U.S. While China takes most of the manufacturing jobs, the Philippines remains the BPO capital. Outsourcing to the Philippines covers 13% of the global market while contributing around $30 billion to the country’s annual revenue.
Not the first time
Gauging the far-reaching consequences of this platform is difficult in this early stage. However, Trump’s first presidential campaign also revolved around his promise to end offshoring. While he won the elections, Trump’s campaign against outsourcing fell through. In contrast, the U.S. offshored more jobs during his first term between 2017 and 2021.
From January 2017 to June 2020, the Labor Department approved 1,996 petitions by companies to shift work overseas, which affected 184,888 jobs. This figure exceeded the 1,811 petitions (affecting 172,336 jobs) during Barack Obama’s presidency.
Ironically, Trump’s clothing line, the Donald J. Trump Collection, including shirts, suits, perfume, eyeglasses, and cuff links, was produced in China, Honduras, Bangladesh, and other countries to take advantage of cheap labor and lax workplace regulations.
Read more Unity Communications and industry news on our main BPO News page.
Suroy suroy, HJ. (2024, July 11). Trump Vows to End Outsourcing If Reelected as U.S. President. Outsource Accelerator. Retrieved from https://news.outsourceaccelerator.com/trump-vows-to-end-outsourcing/
Durkee, A. (2024, July 19). What Is Agenda47? What to Know About Trump’s Policy Agenda If Elected as He Speaks at RNC. Forbes. Retrieved from https://www.forbes.com/sites/alisondurkee/2024/07/18/what-is-agenda47-what-to-know-about-trumps-policy-agenda-if-elected-as-he-speaks-at-rnc/
Gallimore, D. (2024, February 29). The Philippines as the Top Outsourcing Destination. Outsource Accelerator. Retrieved from https://www.outsourceaccelerator.com/articles/the-philippines-as-the-top-outsourcing-destination/
