I believe that many people are against outsourcing because of the economic situation that it may have potentially put us at. The economy is able to stay healthy when jobs are being created, people are being employed, and money is circulating. The issue is that when America decides to outsource products or job it leads to businesses having to close down because there is no point in it's existence when there is a cheaper alternative in another country. When situations like this occur it leads to mass unemployment and this wounds the economy causing its condition to become worse. Others support the concept of outsourcing because they believe it causes results contrary to what those that dislike outsourcing believe. Outsourcing is preferred by …show more content…
many people because they enjoy the benefits that they gain from this such as cheaper labor. Since companies will have to pay less for outsourced labor in comparison to labor in America they save lots of money which can benefit the economy. Outsourcing also allows companies to take their products to another marketplace and gain an opportunity to bring in more profit. A good example of a developing country that would be outsourced to by certain companies is Romania.
Romania is apparently a preferred spot to outsource to according to businesses like business process outsourcing (BPO) and Information Technology Outsourcing (ITO). Romania is an ideal area to outsource to because there are a lot of benefits to getting involved with it and not much is lost when invested into it. For example, experienced IT workers, incredible multilingual skills which is imperative to succeed in the job market, and a reasonable price-quality ratio. Although Romania is expensive to outsource to it is reasonable because the level or skills of the workers easily overcomes to amount of money it costs. Romania is an obvious choice as well because in the BPO field communication is necessary and when workers are multilingual that means that there are more opportunities for profit and success. A developed country involved in outsourcing is Japan but Japan is doing a different form of outsourcing. Japan is actually outsourcing itself and sending it's services to different areas like Hong Kong and Bangkok. Japan created these service centers because of Japanese employees saying that they can't work with other Japanese workers because of culture and language. One downside is that unemployment went up and the employee that get involved in this service are paid considerably
less. One barrier would most likely be a non tariff barrier. Perhaps they may pass a regulation that an employee has to have a certain degree of skill and experience before they can be outsourced. Quotas can be considered as well if one country were to say that only a certain number of employees are allowed to be outsourced and more can only be outsourced if the first group makes considerable progress. I personally believe that outsourcing may help the economy flourish because it promotes business in areas other than America and it also allows for cheaper business situations that leaves companies with more money to either grow or invest into more jobs which may reduce unemployment. It may also spurn Americans to buy certain products that are imported from other countries because of preference.
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?
“Present two arguments for and two arguments against a U.S. company offshoring the management of its customer relationships to technical and managerial personnel in a less-developed country.”
There are many key people that factor in on this issue of job outsourcing. First is the American worker. When most people think of jobs being sent overseas they think of factory workers or telephone operators, but the recent trend in the outsourcing of jobs has been higher paying jobs like accountants, computer programmers, or financial analysts. These jobs are considered white-collar jobs. In this election candidates will try to appeal to everyone who votes. Bl...
Since the concept of outsourcing was introduced it has been a subject of debate between politicians and citizens of the United States. Remarkably, it was the United States who supported outsourcing and now it is the United States that feels its economic progress is being threatened by outsourcing. One may argue that the financial situations that existed two decades earlier are not the same as they are today, thus the change of time, business priorities of economies have also changed.
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.
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.
In this paper, I will discuss the ethics of outsourcing manufacturing from my local community to a developing country. I will view this debate through three different frameworks: Utilitarianism, Pragmatism, and White’s biblical principles. I will also conclude my final view on outsourcing and the benefits of using a framework for making ethical decisions.
In recent years, China's service outsourcing have been expanding from scratch, and gradually expand the field, scope of business mainly related to Information Technology industry, producing services, as well as cultural and creative industries, the target involving Japan, Korea, Europe, America and India. In Shanghai, Beijing and other cities formed a group of outsourcing industry cluster, with significant economic benefits of international service outsourcing park; local outsourcing companies grew rapidly, and gradually change the pattern of the first to foreign-based.
One rhetorical device used in the first article I read was analogy when outsourcing is being compared. “Outsourcing is either the smartest business practice since the development of the assembly line, allowing companies to shave double-digit percentage points off their bottom lines, or the most repugnant, directly responsible for exporting good-paying U.S. jobs overseas.” (Kibbe, 2004) This statement is a misleading comparison that is too vague because this statement already has the reader with the idea that there are beliefs that this idea of outsourcing is either good or bad and not somewhere in the middle. By reading further into the article, many people believe that outsourcing means that jobs will be lost in the United States and research shows that this is simply not true.
Outsourcing raises an ethical issue, as so many blue collar workers, as well as well-educated white collar workers in the US have lost their jobs due to outsourcing. Especially, many who work in the field of technologically advanced services and software were exchanged for the workers in poorer countries for cheaper labor costs. Many of the multinational companies moved their manufacturing sectors to Mexico, China, or India. According to the article, "The Battle Over Outsourcing" (2004) by Bob Davis, et al. illustrates that many of the software programming work has been relocated to India over the years. Offshore outsourcing started with low-income jobs such as call center operators, and spread to high-paid computer ...
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.
Outsourcing jobs to foreign countries or offshoring is often viewed as the demise of the American economy. A more accurate view of offshoring is that it is the groundwork for the future of our economy. By enabling businesses to conserve costs, grow and have access to a large untapped pool of talent, offshoring is essentially securing the stability of our economy by securing the vitality of our businesses. In order to remain or become competitive in today's economy, US based companies must outsource jobs to foreign countries.
There are several comparative advantage that can be gained by companies through IS/IT outsourcing. One of the comparative advantages is to reduce labor cost. Most of large companies outsourced their portion of job to another company or country in order to reduce labor cost. With that the companies can save a large amount of capital and generate more revenue. It has been proved because the
Beginning in the latter half of the last century and continuing to present day, both offshoring and outsourcing have become prominent practices for many successful businesses as a way to decrease costs or to improve the quantity of production. Many people believe offshoring and outsourcing are inherently the same and they are umbrella terms for the same practices. In reality, both terms have different meanings and should not be used interchangeably. The practice of outsourcing is defined as a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally (Outsourcing, 2014). This states that a firm, in order to cut operating costs, will relocate a job or jobs that were formerly performed within the firm, to another firm which more than likely has a comparative advantage in performing the task. An example of this would be when a company decides to outsource their accounts payable department to an external independent accounting firm who is able to complete the task at a cheaper cost to the company than to pay for an entire department to operate internally. Outsourcing does not necessarily mean that the job in question is being relocated out of the country, however it is still possible. Offshoring, by contrast, is defined as the practice of moving employees or certain business activities to foreign countries as a way to lower costs, avoid taxes, etc. (Offshoring, 2014). While the job is being relocated to a foreign country, it does not necessarily mean that the job has been externalized from the company. An example of this would be if McDonald’s relocates their marketing department to England. To summarize, if a...
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.