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effect of outsourcing
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Many who call companies such as Disney or travel agencies like Interval find problems with those who answer the telephone. Why is this? It is mainly due to the fact that the people who answer the telephone have very heavy accents. Most Americans do not expect this. Due to the fact that they are in America, they expect that an American will answer the phone. This is not the case. Running a corporation in America has become very expensive. Therefore, companies go where they can get cheap labor. In countries like India and China, it is very easy get people to work for pennies a day. So when people call certain companies, their call is going to a call center half way around the world. Many Americans get upset at this and they have all right to be. Outsourcing has disastrous effects on the economy. Something must be done. To solve the recent onslaught of economic problems caused by outsourcing, the United States government must lower the cost of running a corporation in this country. Outsourcing has many problems. One major problem with outsourcing is the language barriers. People in different countries speak different languages, naturally, and have different ways of saying things. This could lead to big problems for the company. If the customer and the employee do not understand each other, it could lead to poor call handling qualities. The customer will have to constantly ask the employee to repeat what he or she is saying and could lead to frustration. Even if the employee speaks English, they have a very heavy accent. Also it is wise to consider the fact that English adopted by other countries is very different form the English that Americans speak. Just like British English is considerably different from American English, Chines... ... middle of paper ... ...People can work for them as many hours as possible and gladly accept the money that the company can afford. Outsourcing has it’s pros but it would be a lot better if jobs were created in the United States instead of being shipped to foreign countries. It also could be fixed if the right people are alerted and the citizens do all they can. Works Cited Mankiw, Gregory. “The politics and economics of offshore outsourcing.” NBER Working Paper Series. 1239 (2006): 1-53 McCray Shawn. “The top 10 problems with outsourcing implementations.” April 2008: 1-12 Medical Product Outsourcing. Satcey Bell. October 2006. 22 Mar 2012 PRLOG. Press Release. 11 Feb 2011 22 Mar 2012 United States. Bureau of Labor statistics. U.S. had 3.1 million green goods and services jobs in 2010; 2.4% of total U.S. employment. 22 Mar 2012
But First, Training Foreign Replacements” by Julia Preston covers only a few relevant topics dealing with international marketing. The main topic covered in the article reveals to be the main concern dealing with outsourcing. Outsourcing is a subcontracting process to a third-party company. According to our text Global Marketing, outsourcing is defined more specifically as the "shifting jobs or work assignments to another company to cut costs. When the work moves abroad to a low-wage country such as India or China" (Keegan & Green). Outsourcing reveals to be rather complex, impacting companies and businesses in different ways, both positively and negatively. The article mainly focuses on the issue of outsourcing in terms of the temporary visas known as H-1B, which are visas for immigrants that possess advanced science or computer skills. The article discusses how the company outsources from a firm based in India in order “to be more current and nimble” and “reduce costs when possible due to wage weaknesses in wage regulations” (Preston, Web). On the other hand, outsourcing negatively affects the Disney employees, or cast members, by causing American workers to lose their jobs or career opportunities and be replaced by temporary visa highly skilled technical immigrants for lower pay. Outsourcing is sometimes referred to as
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.
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.
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
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).
Both sides can agree that outsourcing can be desirable for a business do to the potential profit. It allows goods to be made cheaper, management to run smoother, and money to be made faster (Salanţă 270). Both sides can also agree, however, that U.S. jobs are lost as a result of outsourcing (Ahmed 192), as well as environmental damage being cause due to corporations taking advantage of loose environmental regulations (Marquis 39). Upon digging deeper into this debate, one can find that both sides present very convincing arguments.
Opposed to widespread belief of outsourcing threatening the labor of United States economy it has been seen that businesses have been able to extract a multitude of benefits through the outsourcing which has in turn created a number of employment opportunities along with it. When the stock market plummeted; companies began to discharge distress signals and corporations commenced labor cutbacks, as a result of which unemployment began to increase greatly. In times when the recession was reaching its peak, the only alternative was to look for cheap labor and ou...
...ing of jobs that Americans are qualified and trained to do. If a company were going to outsource jobs maybe a good policy solution would be to match, if not double the number of jobs in the states to that of the number of jobs being shipped away. Another thing to consider is that the government doesn’t necessarily have to directly regulate business hiring. The government could impose a self-regulatory policy where as the big companies could set their own rules and guidelines and have an industry standard for the amount of outsourcing a company can do.
Kibbe, C. (2004, 07 09). Outsourcing: the good, the bad and the inevitable. New Hampshire Business Review, pp. 1A-21A.
Outsourcing has been around for many years. In this paper I will discuss some of the history of outsourcing, the goods things about outsourcing, and the bad things about outsourcing.
Outsourcing is a technique for companies to reassign specific responsibilities to external entities. There are several motivations for outsourcing including organizational, improvement, cost, and revenue advantages (Ghodeswar & Vaidyanathan, 2008).
...urcing services, the company operation will be became a mess. This is because one organization can’t run a lot of task or project at one time. Therefore an organization need outsourcing in the way to help their organization run smoothly.
A disciplined approach to management eying leading employees, improving the management team and building the business strategy. Instead of treating each problem as a one off. They design systems and structures that make it easier to handle in the future. (Techrepublic, 2015) 2.2. Risk of exposing confidential data: When an organization outsources HR, Payroll and Recruitment services, it involves a risk if exposing confidential company information to a third-party Synchronizing the deliverables: Some of the common problem areas include stretched delivery time frames, sub-standard quality output and inappropriate categorization of responsibilities. At times it is easier to regulate these factors inside an organization rather than with an outsourced partner Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs involved in signing a contract while signing a contract across international boundaries may pose a serious threat Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of multiple company at a time. In such situations vendors may lack complete focus on your organization 's tasks. 2.3. 1.Know the
The practice of outsourcing jobs is not a new concept. People have been outsourcing their jobs for decades. Some people even offshore outsource jobs. There are many opinions on offshore outsourcing based on how it influences the economy. Some people are in favor of outsourcing jobs, and some people are against outsourcing jobs.