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Effect of outsourcing
Outsourcing pros and cons in america
Effect of outsourcing
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“The rights of every man are diminished when the rights of one man are threatened” (Kennedy, 1963). Continuous improvements in technology capabilities have provided companies with tools to more easily conduct business on a global scale. However, when conducting business with different cultures, you risk different ethical standards. Companies should be accountable for ensuring their product or services can be received by the consumer in good conscience, void of human ethics violations, regardless of where the product or service originates; and consumers should not patronize companies that cannot ensure this trust. This paper provides rhetorical analyses of two presentations pertaining to outsourcing. Neither particularly opposes outsourcing, yet each provides information addressing two different outsourcing concerns. Kibbe’s 2004 article “Outsourcing: the good, the bad and the inevitable” focuses on United States (U.S.) job impact. Van Heerden’s 2010 speech “Making Global Labor Fair” focuses on human rights impact. Rhetorical Analysis: Kibbe (2004) “Outsourcing: the good, the bad and the inevitable” Kibbe (2004) uses the rhetorical devise loaded language combined with either-or-fallacy and the rhetorical devises comparisons, definitions, and explanations combined with downplayer to influence readers to accept outsourcing as an acceptable way of business in today’s multinational world. The article focuses on how offshore outsourcing impacts the U.S. job market. Kibbe’s use of loaded language in the article’s introduction sets the stage to attain reader support for outsourcing. Kibbe (2004) begins the article with two outsourcing definitions: “Outsourcing is either the smartest business practice . . . or the most repugna... ... middle of paper ... ...is a law of human psychology, or human nature. And it will not be repealed by our wishes, nor will it be merciful to our blindness” (Pickens, n.d.). Works Cited Colorado State University-Global Campus.(2010).Module 3 – What do the words mean [Blackboard ecourse]. In HUM101 – Critical Reasoning. Greenwood Village, CO: Author. Kennedy, J.F. (1963). Civil rights announcement. Retrieved from http://www.pbs.org/wgbh/americanexperience/features/primary-resources/jfk-civilrights/ Kibbe, C. (2004). Outsourcing: the good, the bad and the inevitable. New Hampshire business review, 26(14), 1A. Pickens, W. (n.d.). William Pickens quote. Retrieved from http://www.goodreads.com/quotes/tag/human-rights Van Heerden, A. (2010, July). Auret van Heerden: Making global labor fair [Video file]. Retrieved from http://www.ted.com/talks/auret_van_heerden_ making_global_labor_fair.html
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. Before making judgments regarding the righteousness of offshoring from different perspectives, its impact on stakeholders must first be evaluated.
Offshoring American jobs have positive and negative consequences to the American community. Some of those consequences of offshoring American jobs include Amer...
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...
In the article Your Local News, Barbara Ehrenreich provides her personal and professional insights into outsourcing, starting with a newspaper in California that has begun outsourcing the writing of even some of its local stories. In the article The Rise of the Rest, Fareed Zakaria looks back on history to see how we arrived at globalizing and he examines the present through myriad examples and data to then consider the globalized future with “the rise of the rest.” Zakaria’s article better helps understand Ehrenreich’s insight about outsourcing. With the help of Zakaria we better understand Ehrenreich’s outlook of outsourcing.
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).
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”.
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.
“5 Facts About Overseas Outsourcing.” Center for American Progress, Center for American Progress, 9 July 2012,
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).
Weintraub, Daniel. “Outsourcing is Good for America…and California”. The Sacramento Bee. 13 July 2004. Google Search. 5 December 2004
In order for me to analyze the effectiveness of the rhetorical devices used in two separate articles, I read “Outsourcing: the good, the bad and the inevitable” first to analyze then read the other article, “Ban Outsourcing? Bad Idea.”
In conclusion, companies that seek to integrate into global markets usually encounter several problems because of the effect of globalization on business practices. The challenges originating from such integration is attributed to the differences in cultures in various societies across the globe. As evident in Google’s dilemma in China, there is no single set of universal ethics that are applicable to all settings and societies across the globe. Companies such as Google need to develop varying ethical standards that are relevant and appropriate to various nations and cultures in the world. This would enable the companies that are integrating into global markets to avoid ethical issues while maintaining effective business practices.
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.
For most businesses, the easiest way to increase profitability is to reduce cost. In order to lower the production costs, many businesses tend to move their manufacturers to other countries. However, different countries have different philosophy and ethical duty. When a business that wants to expand or start its business in a different country, it has to acknowledge the differences in cultural ethics. In the Motorola case, the company’s conductor had a hard time deciding what ethical action should be taken for the incident between two employees. In order to find the best solution, we need to digest the issue of “What Price Safety” case with points of views of James Rachels’ “The Challenge of Cultural Relativism.”