The Trend of Outsourcing Jobs

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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?

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