The practice of outsourcing jobs is not a new concept. People have been outsourcing jobs for decades. Some people even offshore outsource jobs. There are many opinions to offshore outsourcing based on how it influences the economy. Some people are in favor of outsourcing jobs and some people are against outsourcing jobs. People need to get educated about the great impacts that offshore outsourcing does to an economy. The global economy has started to thrive and offshore outsourcing has profited the consumers as companies want to cut costs and competition, which is why I support offshore outsourcing jobs to foreign countries. What does it mean to offshore outsource? Let’s first start by explaining what outsourcing means. The basic meaning of outsourcing is to obtain goods or services from an outside place. This gives businesses and companies the ability to save money. When the businesses and companies save money that ultimately means the consumers will also save money. The word offshore means some distance from the shore. According to Blinder “Offshoring, by contrast, means moving jobs out of the country, whether or not they leave the company” (20). To better understand the meaning of offshore outsourcing, we can say that it is the process where the companies provide jobs to foreign countries. Big
When Americans hear the word “offshore outsourcing”, they automatically assume that Americans are losing their jobs to foreign countries. Most of these jobs that companies outsource such as the garment industry jobs are offshore outsourced because they are labor intensive jobs. According to Timmerman
“they do, and Nari tells me what each girl does during the process. The majority of the girls including Nari, must iron, the least desirable of the jobs because it’s hot. Ai works as a checker, looking for flaws. She claims to check over 10,000 pairs of jeans per day, which seems like an awful lot.
Globalisation is a growing phenomenon that is the result of various developments in the global environment, each of which merits an individual analysis of its social impacts. For the purpose of this analysis, the focus will be placed upon arguably its most controversial aspect, offshore outsourcing. Offshore outsourcing, or offshoring, is becoming an increasingly common business practice as a result of a combination of the recent technological advancements in the areas of transportation and communication, and the increased competitiveness of the business world. From the perspective of firms, tapping into cheap labor from less developed countries is a very logical business decision to reduce costs and maximize profits. This has not only motivated businesses to engage in offshoring, it has sometimes been critical to their survival in fiercely competitive environments. Before making judgments regarding the righteousness of offshoring from different perspectives, its impact on stakeholders must first be evaluated.
By offshoring American jobs companies will be able to profit from those positions. In contrast, employees will be affected and probably will need to gain more training in order to find another job.
Mankiw and Swagel (2006) argue outsourcing is not as large a phenomenon as the media describes. Their research indicates outsourcing accounts for very little of job loss in the United States, nor has it made a distinct contribution to the slow rebound of the labor market. They go on to propose that increased overseas employment has actually contributed to higher employment in parent United States companies. They reported that while 30,000 jobs were lost per month in 2004, two million job changes per month were happening as well. They reference the Bureau of Labor Statistics when they report that in 2015 there are expected to be 3.4 million jobs outsourced, but 160 million jobs gained here in the United States. They also claim that there is a rise in net US income by 12-14 cents per dollar of outso...
Outsourcing is a complicated and a multifaceted subject that involves a “business[’s] purchase of parts or labor from another company rather than maintaining a sufficient enough number of its own employees to do the same work in the country where the company is already based” ("Outsourcing"). The first practice of outsourcing was in medieval times when “nation-states called in soldiers-for-hire to help their own military forces during ongoing conflicts” ("Outsourcing"). Many think of outsourcing as a one way trade of production facilities moving outside of a companies locale but in actuality it is a two way trade that also involves companies from other areas moving their factories to local areas where conditions are beneficial for the specific business. Outsourcing has evolved but the main idea has remained the same. The recent increase in outsourcing “was initiated by Wall Street pressures on corporations . . . . for increased profits . . . in the production of goods and services marketed in the U.S."(Roberts).
“5 Facts About Overseas Outsourcing.” Center for American Progress, Center for American Progress, 9 July 2012,
It is difficult to determine whether offshore outsourcing has a positive or negative effect on the U.S. economy. It may actually depend on which perspective you take on it. As stated by Hira and Hira (2005), outsourcing in the services sector is a major shift in how the economy operates and will have serious impacts, both positive and negative, on the trajectory of economic growth, distribution of income and the workforce. However, there are many factors to take into account when considering globalization. Companies must familiarize themselves with the various rules and regulations of global business, tariffs, trade agreements and barriers, and decide how to go global; global consistency or local adaptation. All of these issues affect a company’s plan to move forward with offshore outsourcing.
In many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
Outsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due to the efforts of corporations when they began to hire labor forces across the world. Even though outsourcing has come out from its developing stages, there are still following effects on the US economy.
There are many key people that factor in on this issue of job outsourcing. First is the American worker. When most people think of jobs being sent overseas they think of factory workers or telephone operators, but the recent trend in the outsourcing of jobs has been higher paying jobs like accountants, computer programmers, or financial analysts. These jobs are considered white-collar jobs. In this election candidates will try to appeal to everyone who votes. Bl...
Do you ever wonder what our nations underlying focus is? The answer is simple and should be fairly easy to guess… Money! Outsourcing originated from someone coming up with the idea that we can make products for practically nothing in other countries and make very high profits. Although it seems like a great idea to businesses, it negatively affects our country. American consumers are buying these products that are made in other countries and the companies profits are continuing to rapidly increase. At the same time, people that are in the production field of work in America are losing their jobs because producers would rather pay foreign workers to get the job done for a much lower wage. When it comes down to it, one of the reasons our economy is suffering is because of outsourcing. Basically, it all comes down to money. The consumers don’t pay close enough attention to where the products are made. Therefore, consumers are spending extra money and are causing outsourcing to thrive. The lack of knowledge Americans have on the subject of consumers affecting outsourcing is leading our country to economic stress but if we begin to recognize the issue, the jobs we could potentially save may be our own.
Apparently, offshore outsourcing strategies assist the company to reduce costs. Moreover, it will lead the company achieve its goal and increase its profitability. It assists the organisation to not only cut down costs but also can concentrate on improving its services as NBN requested $3 billion to investment for improving network. In addition, the Shareholder will get their interest which might be increasing.
Upadhyaya, Preeti, and Lauren Hepler. "Why hiring women may make your business more money."Silicon Valley Business Journal [San Jose] 11 September 2013, n. pag. Web. 13 April 2014.
Outsourcing is shifting all of the costs-accounting costs, including personnel, plus the risk of failure and the responsibility for action-to the third party. In return for assuming costs, the third party benefits by controlling the operation (Coughlan 167). This is the basic definition of what outsourcing is. Outsourcing has been around from the beginning of time. In the movie, ?It Started With the Greeks,? they talk about how the Ionians found out that they could go around the world and find products that people back in their home town would buy. This essentially started the idea of outsourcing since the people who wanted the product was unable to get it but, they were able to have someone else do it for them. Once people knew that they could get anything that they wanted from around the world it lead into consumerism. So once someone got the idea to start and do this full time as a job they were able to outsource anything that they wanted.
I agree and disagree with Jo her argument. It is true that a passion for the occupation is needed. Although it is easier said than done. A lot of girls and women get criticized for doing typical male jobs. I think that the fear of getting judged by others, especially friends and family, hold them back from doing what they want to
The entire mechanism of finding and retaining “aesthetic labour” creates inequality in the labour market and the socioeconomic sphere of the country. The struggle to find the ‘right workers who look right and say the right things’ gives rise to segregation in the job market. Style, accent, fashion sense is all part of a person’s habitus and is something that people mostly don’t have any control over , which means the people who do not come from the “correct” habitus are being discriminated against. The low pay and the discount In luxury product markets means only the middle class who already has other sources of income or financial assistance from family members can get and prosper in these kind of jobs. Consumer- workers essentially consent to these “bad” low quality jobs because of the brand image and recognition it brings. They achieve satisfaction through these cultural goods and by working with people who are very similar to them in terms of habitus. These “cool” and “hip” jobs become a part of their identity and they strongly associate with the brand. Moreover, it becomes a integral part of their social life. They consent because they don’t think they are workers, they think they are consumers who knows the product very well and enjoys the respect, recognition that comes from their customers because of their product expertise. The focus on aesthetic labor means that workers don’t