Outsourcing

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Recommended: Positives of outsourcing in the free market

Outsourcing

Outsourcing has become a very popular issue, and it has reached an all-time climax. Firms are starting to do this a lot more than than in the previous decade. What is outsourcing? Outsourcing is defined as “The procuring of services or products, such as the parts used in manufacturing a motor vehicle, from an outside supplier or manufacturer in order to cut costs.” And it has become a big issue in our country. There are thousands of articles and books written on it, and you can attend numerous classes and speeches on the subject. The use of outsourcing is quite simple really… Either pay an American worker $15 an hour, or pay someone in India to do the same job for $2 an hour. There are lots of other advantages and disadvantages to outsourcing but I will address those later in the essay. So what does an average American really know about outsourcing? Most people would say sending our jobs to another country in order to save money isn’t justified. It would cost a lot of people jobs, which would send them into distress and possibly debt. But that’s not the whole story behind outsourcing. People hear about outsourcing and automatically decide that it is bad for our economy. What about the good things that outsourcing brings to our economy? We are sending jobs to India, their consumers will start making more money, and in return buy more of our goods and services. In this essay I will show you both points of the debate and you can decide for yourself whether or not outsourcing is bad for our country.

A firm’s primary objectives are cutting un-necessary costs, reducing overhead, and cutting labor costs. America has one of the highest GDP’s, with the minimum wage law in the US being $5.15 an hour. Most people woul...

... middle of paper ...

...l comes down to the American consumer, and how they view the topic. In the end… the choice is yours.

BIBLIOGRAPHY

1. Pew Research Center/Council on Foreign Relations survey conducted by Princeton

Survey Research Associates International. July 8-18, 2004. N=1,003 adults

nationwide. MoE ± 3.5. Available at: http://www.pollingreport.com/trade.htm

2. Network Computing online, Online article, available at:

http://www.nwc.com/shared/article/printFullArticle.jhtml?articleID=115201900

3. TechWeb online, “IT salaries are Rising”, online article, available at:

http://www.techweb.com/wire/story/TWB20030402S0002

4. Information Week, “IT salaries Show Upward Trend, Outsourcing Overblown”, TechWeb

article written by W. David Gardner, available at:

http://www.informationweek.com/story/showArticle.jhtml?articleID=50500043

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