The war in Iraq has been at the forefront of the presidential race but the importance of outsourcing American jobs seems to have been slightly overshadowed. If the issue of outsourcing is not watched carefully and a definitive plan hammered out, a trickling down of negative effects may occur within the U.S. economy. However, there is a polarized opinion on the effects of this “phenomenon”. In recessions of the past the American worker was laid off with the impression they would be rehired as soon as demand for goods and services were presented again. Now people in jobs from computer programmers to telephone operators are losing their jobs and never returning to the same field again.
Dedrick et al (2003) “studies have failed to identify the relationship between the information technology investment and the firms profit. The term ‘productivity paradox’ describes the information technology’s inability to produce higher productivity. Solow (1987) felt that the technology revolution slows down the productivity growth. Stephen roach (1994) was one of the first to use the term productivity paradox. He described the paradox as a situation where America’s service sector holds about 85 % of the country’s information t... ... middle of paper ... ...mes computer just need to upgrade the software just to keep updated with the industry trends.
During the past few decades we have seen a shift from Industrial work to Information technology work. Recently our country has just recovered from an economic depression. This depression was a “wake up call” for many people, as they saw highly educated professionals loosing their jobs. Why, were these educated people loosing their jobs?—Did they break the rules, not get along with their bosses, or loose their cool? No, they did not have the flexibility, versatility, and cooperative skills that are needed in business for a changing economy.
If the US closes off borders to foreign trade, manufacturing companies would feel a financial strain, causing potential job loss. Manufacturing companies in the US rely on profits from selling products in foreign markets and on many foreign goods to assemble those products. If businesses are not able to import their needed materials, then they would not be able to produce the products, both wanted and needed by both Americans and foreign buyers. Job loss would be inevitable and lead to many of the same problems seen today but on a grander scale. Job loss, homes in foreclosure, and the people who still have jobs would be living from paycheck to paycheck.
Stockholders do not have confidence in the success of the company. Global Communications is also facing a competitive marketplace where everyone in the industry is competing for the same business. Recent offerings of bundled package solutions by cable companies that included computers, television and telephone service have also impacted the company. Management has identified dug in deep and attempted to diagnose the true cause of the problem (Bateman and Snell, 2005, chapter 3). A recent decision by the management team to cut costs by significant lay offs of employees and decreasing the salaries of those that relocate by 10%.
GAP ANALYSIS: GLOBAL COMMUNICATIONS Gap Analysis: Global Communications Gap Analysis: Global Communications Global Communications is a company that needed a new strategy in order to compete with its competitors. The telecommunication industry was flooded with the addition of cable companies joining in their market. Global Communications was financially in a decline and had already asked union workers to give up a percent of their benefits in order to help. The union did so willingly in order to preserve the future of their jobs within the company. The company brought in new executives to try and come up with a plan to save the company from its decline.
The largest companies in the United States are finding that there are workers that are just as qualified in other countries that do not require as much pay. The article Vanishing Jobs says, “Nationally, layoffs are eliminating jobs far beyond blue-collar workers... in the ever shrinking manufacturing sector” (Katel). This quote interprets the idea that business will do anything to make a greater profit through cutting costs. Most politicians say that the issue behind job loss in the United States is because of lack of education. This to some point is true; however, the evidence provides the information to conclude that the degree holders are mostly the ones losing their jobs because of the higher wage that is obtained by the degre... ... middle of paper ... ...ect on the college graduates and younger children of today.
During the past few decades we have seen a shift from Industrial work to Information technology work Industrial Work To Information Technology Work During the past few decades we have seen a shift from industrial work to information technology work. Why are educated professionals losing their jobs? Why is this happening? According to Rifkin, he believes the end of work is near. The three points of interest our massive unemployment, automation in factories and the dissolving of the middle class.
Several of my friends’ parents have worked for one of the big three motor companies for years, and many of them have been laid-off due to outsourcing. A few years ago, these people would have had no trouble paying their mortgages. However, now that their family income has dramatically decreased, they are no longer able to keep up. In recent years, this decrease in the family income has lead to Americans choosing to buy more affordable foreign goods. This, in turn, is hurting the U.S. industries and contributing to the need for more outsourcing.
In 1997 Apple purchased NeXT, but sales continued to decline. The company was forced again to downsize, cutting about 30% of its workforce. Many projects were canceled and research costs were cut, due to the downsizing of the company. Jobs and Amelio returned to Apple to work on a temporary basis. An alliance with Microsoft was formed, which was a Mac version of the Microsoft office software.