...Outsourcing: America’s Job Killer Javier A. Arocho Axia College of University of Phoenix COM 120 Effective Persuasive Writing Carl L’Esperance August 6, 2006 Abstract In my paper “Outsourcing: America’s Job Killer” I will be covering the effect that outsourcing has on the American people. Job losses, higher unemployment rate, and lower economy are the results caused by outsourcing jobs to foreign countries Try to imagine American’s going to work early in the morning, same routine for over 10 years at the same job. They arrive at their desk to find a memo from their CEO announcing an important meeting taking place that day for all employees. During the meeting their CEO announces that in two weeks their company of five hundred or more employees will be closing for good because they are relocating the business to a foreign country. Now in two weeks they will be unemployed from the job that they gave 10 years of excellent service, and they have to start all over again. This is what happens to hard working American’s when companies decide to offshore their business to foreign countries. Outsourcing jobs to foreign countries create job losses in the United States. American jobs are becoming scarce every year. More companies are deciding to outsource, because it saves them more money. There are people in other countries that are more than willing to work longer...
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...Introduction Off-shoring and outsourcing have become especially prevalent in recent years due to the shift in foreign labour markets becoming more competitive, and even favourable in some sectors. It should be noted that domestic examples of outsourcing do not shift the labour market because within the country itself, there are no structural changes. As a result, this paper will focus on outlining the various off-shoring and outsourcing implications and effects on international labour markets. Outsourcing vs. Off-shoring Companies have been able to implement off-shoring and outsourcing because of the phenomenon of lower transportation costs and instant communication across barriers of the world. Outsourcing and off-shoring are often grouped together and defined similarly, however they can be understood and interpreted in many ways. Outsourcing is a division of labour by contracting foreign third-parties abroad. In comparison, off-shoring is a more extreme form of outsourcing. It instead relocates key production sectors abroad, but not core innovative activities. Companies will often setup their own facilities which results in a decrease in foreign unemployment. Specific examples related to off-shoring and outsourcing will be discussed throughout the paper. In a wider spectrum, firms use off-shoring and outsourcing to remain competitive with the ongoing globalization that is present. Both countries involved are able to raise their nation’s GDP by shifting labour...
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...third world countries to produce their products for half the cost. This has caused a debate amongst American citizens. Many people are against outsourcing, simply because it leads to unemployment increasing in America, yet allows foreign country’s residents to obtain jobs. Outsourcing is usually done by large companies, mostly because it is cheaper to get the job done in another country than it is to have it done here, due to the fact that workers in America are often paid more for the same task than workers in foreign countries, like India. On the contrary, many corporations believe that in the long run, outsourcing can benefit the American economy. That by outsourcing to non-developed or developing countries, we enable them to improve their economies. That by exporting products and services to be made in foreign countries we are lowering the prices of those products and services to be made in foreign countries we are lowering the prices of those products for the American people, and at the same time helping foreign nations. Industries and companies are reaching out across the world. Capgemini, a French IT company has branched out to many different countries over the years. Sodexo, another French company, is a global food service industry, expanded to countries such as the United States, Africa, and other countries. Computer Science Corporation started in the United States and has expanded to nations around the globe. Intercomp, A Russian company, began outsourcing several years...
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...There is no denying that outsourcing is a major phenomenon on a massive global scale. The Information Technology field is a major contributor to global outsourcing. Outsourcing is currently a major social and political issue in the United States. At stake are thousands of jobs ranging from help desk operators to software programmers. The financial impact outsourcing has on the global economy is also a key factor. As time passed, companies recognized the need to cut operating costs, reduce personnel and save their resources. Hence, outsourcing came to the forefront as a way to stay competitive. Developing nations like India and China have come to light in recent years as they have a wealth of computer engineers and programmers who will work for low wages. Outsourcing has become such a common practice that it is now considered a benefit to the world economy, and knowing that outsourcing is a $400 billion a year industry and IT outsourcing is a vital part of the industry. A slump in IT outsourcing would mean a loss for the global economy andThe world must accept that outsourcing is a major staple to the world economy. However, with every step forward, come two steps back. Companies continue to outsource jobs overseas, leaving thousands jobless in the United States. Companies have emphasized costs cutting and profits rather than focus on the social change outsourcing has done to American Society and the economy. The era of technological outsourcing has essentially lowered the...
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...Shalone Brown Professor Carol Bruzzano English 101 30 September 2013 Outsourcing “Our great history has been that people came to Michigan because you didn’t have to have a college degree to get a good paying job. Consequently, we have got a larger number of our population that right now are facing outsourcing, et cetera, without higher or advanced degrees.” Jennifer M. Granholm the former Governor of Michigan made this statement. In the past many Americans were able to provide for their families with low skilled jobs. However, during current times, these particular jobs are rapidly leaving our economy and entering the world economy. A simple definition of outsourcing is to obtain goods or services from an outside or foreign supplier. Outsourcing is beneficial to the world economy and companies but its having a reverse impact on the American economy and its citizens. America is one of the main contenders in the outsourcing arena, and many of our low skilled jobs were given to struggling countries. Although we lost these jobs the higher end jobs were to say here in America. Companies usually send customer service jobs, claims processing job, transcription jobs etc. to foreign economies. But, higher end jobs such as IT positions and journalism opportunities are also leaving us and going into the global workplace Outsourcing allows individuals in other countries employment opportunities. By sending these jobs to foreign lands we are helping to boost their economies, and raising the...
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...Outsourcing jobs may lead to a weakened economy Anne Onyambu ENG 1000 Ms. Lorrinda Khan November 11, 2011 A popular theory states that something is not worth doing if it earns you less than your hourly wage, imputed or otherwise. For example, if you make $120 an hour and you can hire someone experienced to mow your lawn for $20 an hour then, you should go ahead and pay for the service instead of doing it yourself. This will leave you free to use your time where you can earn $100 an hour hence create more value for yourself and many others. Of course, you can mow your own lawn, but you will be losing a value of $100, if there is an opportunity to earn $120 an hour and can get someone experienced, who earns $20 an hour to do your lawn. This is the essence of outsourcing, to save costs and hence create increasing value for stakeholders in organizations. The prevailing trend of outsourcing to foreign countries has become an issue of major concern of all representations of the common people all over the world. Specifically, in America, outsourcing of American jobs has become a big topic. Many jobs are being outsourced to other countries, like China, India, resulting in job scarcity and leaving the American population unemployed. Outsourcing refers to the practice of contracting with third companies or vendors outside the organizations, usually in another country, to deliver products and services to local customers at a cheaper price. The practice of outsourcing is a...
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...Outsourcing is affecting the U.S. economy greatly. Outsourcing is taking away jobs from the American people causing a rise in the unemployment rates. Not only is outsourcing taking away jobs, but it is making it harder to find new jobs. Outsourcing is where an American company will send certain jobs or duties to be done in another country. Outsourcing is also the transfer of the management, and also the day by day execution of an entire business function to an external service provider. It is a company’s practice of paying an employee in a small developing country to perform a function or produce a product that could be made by the paying company. Business jobs that are typically outsourced include information technology, human resources, facilities and real estate management, accounting, Customer support and call center functions, like telemarketing, customer services, market research, manufacturing and engineering. Outsourcing has become one of the fastest growing trends in the business world. There are many reasons that a company would elect to use outsourcing. Among them is the fact that it provides an almost immediate opportunity for savings as well as a noted improvement in quality. The main reason why American companies are doing this is to save money. It’s cheaper to have someone form a developing country do the job because a dollar goes a lot further than in the states. One management problem that is causing outsourcing is that companies are looking for ways to cut...
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...Offshoring of U.S. Service Sector Jobs Sheila Brown Busb 315 University of Texas Abstract Outsourcing is the agreement of diverse functions, such as data entry, programming, facilities management, disaster recovery, and telecommunications management, to outside providers of services. The main reason why organizations implement outsourcing is cost reduction, to leverage themselves ahead of their competitors, and as a means to increase their adaptability to changes in the business world. Outsourcing also provides the ability to benefit from the advances in information technology, while focusing on core business activities of the organization. Not only does outsourcing information technology functions enable increased concentrated efforts toward the organizational mission, but if skillfully planned and properly managed, contributes to healthy growth in the company’s fiscal bottom line. The implementation of offshoring has affected the competition and the expansion of the business service industry in an increasingly accessible and competitive global world. The effect of Outsourcing Within The Business Services Industry The business service industry has been impacted with intense pressures of reducing costs while also increasing new customers and introducing new products to create a center of attention to those customers. Lately, more companies are implementing offshoring strategies (i.e. outsourcing of operations to foreign countries) to cut costs. However there...
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...Wladimir Andreff. Outsourcing in the new strategy of multinational companies:foreign investment, international subcontracting and production relocation. OUTSOURCING IN THE NEW STRATEGY OF MULTINATIONAL COMPANIES: FOREIGN INVESTMENT, INTERNATIONAL SUBCONTRACTING AND PRODUCTION RELOCATION* WLADIMIR ANDREFF Professor Emeritus University Paris 1 Panthon Sorbonne Centre d’Economie de la Sorbonne. ABSTRACT. The article is dealing in the first place with the definition of (offshore) outsourcing in relation with foreign direct investment and international subcontracting process, as well as with some connected issues such as fragmentation of the production process, international production relocation, de-industrialisation in developed countries and industrialisation in newly industrialising, now coined emerging countries. In the second place, it aims at finding how global strategy differentiates from traditional MNC strategies and how much outsourcing fits with such global strategy. The last section of the article briefly screens the economic impact of outsourcing on the world trade structure – with the two enlightening snapshots of global trade in sports goods and European Union 15’s outward processing trade with Central Eastern European countries (CEECs)-, as well as on home developed and host emerging countries. The article conclusion is that outsourcing has grown faster than world trade in the past two decades and has skyrocketed during the very last years because it is a...
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...Does Outsourcing Save Money COM/156 October 7, 2006 Jacqueline Lance In this day and age, we wonder why major companies outsource and whether they are really saving money. A website named investors.com said, “More than 1.3 million additional Western jobs will vanish by 2014 due to outsourcing”. Outsourcing to foreign countries can help save larger companies money, by reducing cost and increasing revenue. Companies are finding more ways to save money and increase productivity. Outsourcing might not look like the best decision to consumers in reality it is the best choice for a business. Even though a lot of American workers are out of work, there are still several benefits to outsourcing. The main benefit to outsourcing for most companies is saving money. In this current economy it is hard to save money in America with the cost of just about everything increasing daily. Companies have no other choice but to outsource, or they might have to close down. In order to keep up with consumer demands, major companies are outsourcing to foreign countries, were they are able to get tax breaks and cost reduction on materials. With the cost savings that the companies receive they are able to produce a better product. There are several things that must be completed prior to determining if out sourcing is the best option for your business. Outsourcing in foreign countries is becoming the new way for companies to save money. Before a...
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...part 3.1 Outsourcing definition and types 3.2 Outsourcing and its effect on business 3.3 Outsourcing pros and cons 3. Conclusion 4. Bibliography Introduction The term outsourcing comes with many preconceived connotations, both positive and negative, thus the study of the mechanisms for effective use of outsourcing as a business development tool is also clouded with these perception issues. Much of the academic study of outsourcing revolves around trying to determine if it is a good thing or a bad thing, whether it is harmful to the local workforce or beneficial to globalization, and whether the average company has an obligation, moral or otherwise, to consumers in its home town, state or country to use labor within that region. None of those topics are pertinent to the discussion here and are therefore being immediately excluded. That is not to say that these are not pertinent and valid area of research in their own right, only that they are tangential to this discussion herein. This review will focus on outsourcing as it relates to control mechanisms within company development. Specifically, this paper will attempt to identify the link between control mechanism and outsourcing within the framework of managerial accounting. Outsourcing, literally, is the use of an external source to perform a business function instead of having an employee do it using company equipment. In its simplest form, outsourcing is paying a cleaning...
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...against outsourcing? Why do others support it? Simply because outsourcing takes jobs away from Americans and American families while giving them to people from other countries, some people may be against it. Supporters believe that in the long run, it could help American jobs and the economy because of the reason that as foreign incomes rise, it helps US employees in the long run. What industries or companies may have an interest in outsourcing to your countries of research? One company that seems to be interested in outsourcing to other countries is AT&T. India is very popular for outsourcing jobs that have to do with telecommunication. AT&T’s interest in India would be caused by their willingness to work for cheaper wages than Americans and also because one of their top languages is English. What barriers to trade would prevent an American company outsourcing to one of those countries? Government subsidy to a particular domestic industry could be a common barrier. Subsidies make those goods cheaper to produce than in foreign markets. Also tariffs could stop them from wanting to outsource their company. Do you think outsourcing would promote or hinder a healthy American economy? Explain. I think outsourcing promotes a good, healthy American economy and then the other countries will believe we are trying to help them and their economy. But it will also hinder the healthy American economy because while we are benefiting other countries, our country won't...
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...Outsourcing Jobs I think it is interesting to know the positive and negative arguments about outsourcing. On one hand, there is the current uproar about illegal immigrants swarming in to the U.S. to do the jobs that Americans don’t want to do. And on the other hand, there is the continuing outcry about jobs going overseas. This would be the outsourcing of jobs that Americans would be willing to accept if the corporations were not so adamant about improving their bottom line for their stockholders. So, what is outsourcing and offshore outsourcing? By definition, “outsourcing (or contracting out) is often defined as the delegation of non-core operations or jobs from internal production within a business to an external entity (such as a subcontractor) that specialized in that operation. Outsourcing is a business decision that is often made to lower costs or focus on competencies” (Miller, 2010). A good example of outsourcing is janitorial services. Instead of a company training several people for the position, they can outsource these tasks to another organization that specializes in recruitment services. This way they can save the time from hiring and training, and the work output should be of the highest quality. Offshore outsourcing is referred to as, “work done for a company by people in another country that is typically done at a much cheaper cost” (Miller, 2010). These services are outsourced elsewhere to countries other than where the goods and services are actually...
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...or national boundaries. This term as based on business can be defined as; the process of extending to other parts of the world to develop an increasingly integrated global economy by using free trade, free flow of capital, and utilization of cheaper foreign labor markets. Globalization can be good for business because it can make operating in foreign markets more efficient. It is also beneficial because it raises a business’s profits in other parts of the world. (1, Premise) Businesses will be able to communicate more effectively and efficiently, if they are working in an open market. Globalization directly effects the administrative, economic, and geographical system that is in place with the nations in an effective way. Today’s business era is far more challenging and competitive, and although it is more difficult, globalization is still one of the most important components to the economic, administrative, and geographical sectors. It also provides effective business with the nations in an effective and proper manner. There have been a high number of changes that happen rapidly in the economics of all nations due to the rapidly growing globalization process. However, the implementation of globalization in some countries is creating issues that affect the nations directly or indirectly. (1, Conclusion) Although there are some issues, globalization allows businesses to grow and do much...
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...Outsourcing: What’s the true Impact? Cameron D. Rafford MGT 580: Intro to Organizational Behavior University of New Hampshire INTRODUCTION Outsourcing has quickly become one of the most controversial business tactics in the United States. Nowadays, if you call the customer service line of a major business or corporation, there’s a good chance you’ll end up talking to someone thousands of miles away. If you go shopping for new clothes, it’s likely that some of the shirts and pants you try on were manufactured by people from foreign countries, in shops far less glamorous than the ones the finished products end up in. Outsourcing is so commonplace in certain industries, we don’t even think twice about it anymore. But over the past few years, the trend has spread to practices far beyond call centers and apparel manufacturing. In fact, you might be surprised at the industries that rely on outsourcing now (Divine, 2010). This paper will examine the effects that outsourcing has already had on business, as well as look a little bit into the future to see what it holds for us down the road. It will focus on how it has affected our economy and society as a whole, as well as the individual organizations and their employees. There are both positive and negative impacts of this way of doing business that need to be realized and accounted for in order for the economy and American business to remain strong. We will reflect...
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