Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Disadvantages of outsourcing
Outsourcing pros and cons essay
Outsourcing pros and cons essay
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Disadvantages of outsourcing
The concept of outsourcing in the Unied States goes back to 80's. But it was in the 90's that really companies began to use it more and more and they found out that this is something that really works for them. Outsourcing is defined as "the practice of subcontracting manufacturing work to outside and especially foreign or nonunion companies." This concept became very widely used in practice today in the United States. Firms such as IBM, Sprint, AT&T, Dell Hewlett Packard, and Novell are some of the major companies which have really been successful using it for a while now. Despite companies success there are still many questions raised whether the US gains more than it looses or the other way around. This controversial issue might be considered a big problem for the US economy, and yet on the other hand it might also be considered a great idea. The issue has been brought up for a while now and it's still being debated. Outsourcing has brought many advantages for companies, but we should ask if it really brought advantages to America as a country. Is it more important that companies become more competitive in the international market, Americans loose jobs, and our economy suffers or should we keep Americans have jobs, and be less competitive. Also, there are serious issues that make outsourcing abnormal which include the manipulation of currencies by foreign governments, the control of workers rights and the absence of environmental regulations, where this is the ethics part. These questions might be easy to answer but how should these issues be administered so that everyone is happy. Is there such a way that every one would be happy? I personally doubt it, and I don't think that this issue will ever go away for the fa...
... middle of paper ...
...it (Lok, 2005). The problem with this argument is that actually the 20 to 30 percent of employees consists of white collar or close to white collar employees who I believe would American people rather have than have them work in any other place than America.
Outsourcing is a subject in which there is a lot to analyze a talk about. There is many issues which are currently in the air and which are still being debated and will probably be debated for the next few years. What we conclude based on these presented issues is that everything will always have negatives and positives. I think that America should closely look and try to figure something out that will satisfy its own people and not just leave as it is. They should realize that not having enough jobs, or keep making loose jobs is not un answer. It looks like it might be getting worse and worse.
But First, Training Foreign Replacements” by Julia Preston covers only a few relevant topics dealing with international marketing. The main topic covered in the article reveals to be the main concern dealing with outsourcing. Outsourcing is a subcontracting process to a third-party company. According to our text Global Marketing, outsourcing is defined more specifically as the "shifting jobs or work assignments to another company to cut costs. When the work moves abroad to a low-wage country such as India or China" (Keegan & Green). Outsourcing reveals to be rather complex, impacting companies and businesses in different ways, both positively and negatively. The article mainly focuses on the issue of outsourcing in terms of the temporary visas known as H-1B, which are visas for immigrants that possess advanced science or computer skills. The article discusses how the company outsources from a firm based in India in order “to be more current and nimble” and “reduce costs when possible due to wage weaknesses in wage regulations” (Preston, Web). On the other hand, outsourcing negatively affects the Disney employees, or cast members, by causing American workers to lose their jobs or career opportunities and be replaced by temporary visa highly skilled technical immigrants for lower pay. Outsourcing is sometimes referred to as
In the 1960’s American Companies started offshoring job positions to Asian countries, and Hispanic countries. American Companies started offshoring American Jobs because their business was more profitable in other countries, so in order for the companies to be closer to those countries American Companies started hiring employees in those countries. Furthermore, as American companies realized how much money they could save by offshoring jobs to other countries with low income they started offshoring more jobs with the purpose of saving money. As American companies offshored white and blue collar positions, their profit incremented and they were able to invest more money in their products. The objectives of this report are the following:
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?
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.
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.
This does not seem to be the case when so many companies actually leave their U.S. home factories and build new ones in third world countries. (The Big One. Michael Moore. 1998). Why would any company prefer to stay in America when they could ...
...ly. “In the United States, we may not like lawbreakers, but we often seek services and low-priced products made by people who come here illegally” (Schaefer 87) By hiring internationally, the United States is not encouraging our subordinate groups to enter desirable fields of employment and we are taking the best and brightest away from their native county (Schaefer 95).
Pekkala Kerr, Sari, William Kerr, and William Lincoln. "Skilled Immigration and the Employment Structures of U.S. Firms." November 2013. The National Bureau of Economic Research. Web. 20 February 2014.
So why, one may wonder would anyone hire an American worker at a higher rate, when an immigrant will do the same work for less pay? This increased competition for j...
Slaughter said it’s a common perception that hiring overseas means fewer jobs in the United States. Not so, he said. While job losses are certainly true for some companies, statistics have shown that, generally, increased hires abroad also have complementary increases here.” (Kibbe, 2004)
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.
Large corporations seeking the extra dollar to pocket are willing to spend whatever it takes to reduce the cost of production and increase profit margins. Doing whatever it takes in some instances can help men moving operations overseas to developing countries who are glad to be working. These developing countries unemployment rates are extremely high, so any job that pays is great to have. Americans lose jobs to foreign workers because the American economy is one of the largest in the world and its citizens enjoy great standards of living, when juxtaposed with a city of the same size in Taiwan. Labor costs play a huge and crucial role in corporations, which in turn pay the profits to the corporate giants who run, manage, and own the businesses.
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.