The Trend of Outsourcing Jobs

1827 Words4 Pages
bulb-icon

Recommended: Effect of outsourcing

The Trend of Outsourcing Jobs

Did the major companies in America not think of global competition as they started to expand their operations and increase the salaries of the workers? Why is it such a hot topic now, why didn't this act of outsourcing start long ago? What effect does outsourcing have on the American economy, will we be able to stop this trend, and if so what will be the effect. In this paper I will be looking at and discussing why companies are outsourcing the jobs overseas. What benefits that companies are getting out of it, and the problems that face management, as outsourcing seems to be the trend of big business.

INTRODUCTION

Outsourcing is the delegation of tasks or jobs from internal production to an external entity (such as a subcontractor). Most recently, it has come to mean the elimination of native staff to staff overseas, where salaries are markedly lower. There has to be a reason that companies are going to outsourcing rather than hiring people within their own country. The bottom line, the single thing that drives every company in the world. What ever can increase the bottom line you can expect that companies will do everything possible to reach higher profits. Living in Michigan almost my whole life, and being feed from the hand of General Motors outsourcing hits close to home. I feel that the one thing that has increased outsourcing is the results of the union. Back in the time when the union started I believe what they were doing was something that had to be done, and served a very good purpose. Helping employees get the rights that they deserved. But of course the union could not do this with just volunteer work. The people that were running the union of course had to get paid, and all of the people that were involved in the union had to pay dues. The union since the day that it evolved has been negotiating more and more money for its members and benefits fit for a king. Having done all of this has increased wages to rates that are just to high for the jobs that people are performing. Companies are feeling this effect now. If a product can be made here in the United States by a worker making 27 dollars an hour plus medical and a whole different array of benefits, then you can make that same product over in China or India with a worker making 3 dollars an hour which one would be a better business move?

Show More
Related

  • On How American Companies Started Offshoring White and Blue Collar Positions to Other Countries with Low Pay since the 1960's

    2192 Words  | 5 Pages

    Offshoring American jobs have positive and negative consequences to the American community. Some of those consequences of offshoring American jobs include Amer...

    Read More

  • Outsourcing: Pros and Cons

    527 Words  | 2 Pages

    Recently outsourcing has been in the news, especially during political election years. It seems to be a phenomenon that is causing much concern among the population. But exactly how is outsourcing effecting both workers and businesses? And is it as big of a problem as politicians describe?

    Read More

  • Sweatshops Case Study

    1536 Words  | 4 Pages

    “5 Facts About Overseas Outsourcing.” Center for American Progress, Center for American Progress, 9 July 2012,

    Read More

  • The Impact of Outsourcing on the U.S. Economy

    551 Words  | 2 Pages

    For advocates of global business, the hope is that outsourcing will help lift the United State’s economic growth and development by lowering the input cost of services (i.e. labor and materials) and by opening new markets abroad. Mainstream economists believe that outsourcing will have ...

    Read More

  • Outsourcing and the US Labor Market

    1210 Words  | 3 Pages

    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.

    Read More

  • Labor in the United States and Outsourcing

    1040 Words  | 3 Pages

    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.

    Read More

  • Why American Outsourcing Is Bad

    255 Words  | 1 Pages

    ​This report is extremely credible and qualified, as it was written by an author who is well-versed on the topic. The author was also the Assistant Secretary of the Treasury in the Reagan administration, making him even more authentic source. Throughout the article, the author discusses and examines the words of two other authors, Ron and Anil Hira, who are experts on the subject of American Outsourcing. These authors are also very credible; one is a professor at the Rochester Institute of Technology, and the other is a professor at Simon Fraser University. Additionally, the author refers to many case studies that were taken at different universities in order to justify his claims on why American Outsourcing is bad. The intended audience is

    Read More

  • The Outsourcing of American Jobs

    1024 Words  | 3 Pages

    As the problem of job outsourcing becomes more of an issue in politics, elected officials like the President and Congress will no longer be able to ignore the dilemma. 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”.

    Read More

  • Outsourcing California Government Jobs

    2799 Words  | 6 Pages

    Outsourcing, the practice of transferring certain job functions to companies whose employees perform them for less money overseas, is not something that only happens in the corporate world. Following in the footsteps of corporate outsourcing, some state governments, including the state of California, are also beginning to outsource state-funded projects, departments, and services.

    Read More

  • How Consumerism Affects Outsourcing

    883 Words  | 2 Pages

    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.

    Read More

  • Effectiveness of Rhetorical Devices Used in Two Articles

    1095 Words  | 3 Pages

    Kibbe, C. (2004, 07 09). Outsourcing: the good, the bad and the inevitable. New Hampshire Business Review, pp. 1A-21A.

    Read More

  • The Pros and Cons of Outsourcing

    1607 Words  | 4 Pages

    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.

    Read More

  • Labor Unions Decline

    757 Words  | 2 Pages

    less and less. Many manufacturing companies are choosing to outsource to cheaper countries overseas. Since labor unions hold their strongest influence in manufacturing, the decrease in

    Read More

  • Homelessness Research Paper

    878 Words  | 2 Pages

    Outsourcing is, “practice of having certain job functions done outside a company instead of having an in-house department or employee handle them” (Entrepreneur.com 1).With every choice comes consequences some are benefeicial some are negative. Outsourcing benefits are saving money to expand business. Interviewed by CNN, Mike Scanlin, a small business owner, has saved half a million dollars due to outsourcing. Instead of paying someone $150 an hour in the U.S he pays people on the eastern hemisphere $15 an hour. There are many other business who have performed such task such as Allstate, AT&T, Coca-Cola, Expedia, and many more. Outsourcing also comes with a hard price: job loss. Techsunite.org states that outsourcing is a terrorist threat and that over 500,000 jobs have been outcourced since 2000 and over 250,000 were lost due to outsourcing. Outsourcing has been one of the top ten ways to lose a job since 2000. There has been over thousands of companies that outsource jobs abroad. Also, their are companies considering moving to the outsource method; which means more job lose. When people lose their jobs they lose their homes when intell makes them homeless. Large homeless rates make our american pride questionable. The question becomes are we really united or are we cheap? If all companies stopped outsourcing and kept all jobs here in the U.S the homeless rate would decrease dramastically.

    Read More

  • Offshore Outsourcing Essay

    1873 Words  | 4 Pages

    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.

    Read More

More about The Trend of Outsourcing Jobs

Open Document