Satisfactory Essays

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 cost tremendously in labor and manufacturing. Developing countries such as India are now taking a lot of American jobs. American companies are under pressure to reduce costs, and foreigners can do a lot of high-tech jobs more cheaply than they can be done here." That's why a lot of Americans are losing their jobs to the foreigners like the people of India and China. People in India are paid 1/10 of what employees in America get paid for doing the same job because the cost of living is a lot lower in India and other developing countries. So many managers in America are taking advantage of this and are saying “why pay an American twice as much for the same job when it can be done in India”. India economy is now starting to boom because of American jobs being outsourced to them. Telemarketing and I.
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