Offshore Outsourcing

Powerful Essays
Offshore Outsourcing

Currently, it has been reported that many of our jobs, as much as one out of every three private-sector jobs are being sent overseas.

What is offshore outsourcing?

Outsourcing occurs when a firm subcontracts a business function to an outside supplier. Outsourcing is mainly the result of companies who will always pursue the lowest-cost structure, which means less skilled work will move out of the U.S. to emerging economies.

Many believes that this is a good thing, because living standards around the world will rise, and workers in developing nations will get new and higher-paying jobs, and consumers in the U.S. will be able to buy products that are cheaper than if they were made at home.

This paints a scenario where everyone seems to be at the winning end right?

This expansion of labor has provoked many controversial debates questioning whether sending so many American jobs overseas is healthy for our economy.

One side of the argument is that with the sudden increase in outsourcing high-technology and professional jobs, that we may be in danger of being on the fast-track to becoming a third world country and that our position in the world as the lead economic power might be in jeopardy.

On the other side, people are arguing that even though offshore outsourcing forces our economy to suffer job losses that it is only temporary and that the long term benefits will outweigh the short term suffering.

The question is, just how serious for America, its’ workforce, and its economy is the shift?

Many supporters for outsourcing defends the process, optimistic, referring to two decades ago, during the loss of auto jobs and other high-paying manufacturing jobs wh...

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...hat this will help create win-win solutions and ensure that everyone benefits from a more competitive and healthier global economy.


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Johnson, Mike. Outsourcing in brief. 1997

Raynor, William. Outsourcing Jobs Off-Shore: Short and Long-Term Consequences. 2003. The State University of New York.

Kling, Arnold. Please, Outsource to My Daughter.2003. TCS: Tech Central Station.

Steidtmann, Carl. The Macro-Economic Case For Outsourcing.2003. A Deloitte Research Economic Brief.

McKinsey Global Institute. Offshoring: Is It a Win-Win Game? 2004.
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