Outsourcing in America Harmful or Helpful?.
Much attention has been given recently to the controversial labor practice of outsourcing. Does the fact that the presidential race is using jobs as a major campaign platform, or concerns from the business world and the up and coming workforce push this issue to the forefront? Nonetheless, this is a hot topic and details and horror stories can be heard on most any news show or business magazine or newspaper.
The purpose of most businesses is to maximize profits by using scarce resources they have available in the most efficient way. This, of course, includes labor. For years, economic theory has taught us that capital assets were known as "fixed" assets and that labor was mobile. It seems now that this theory is no longer true, thanks to advances in Information Technology. It is very possible and profitable for a company such as Intel and Texas Instruments to outsource positions such as software programming to India, paying around $10,500, versus an American employee with a $65,000 price tag, for the same work. Even though Business Week magazine reports that " pay for basic application development has plummeted 17.5% in the past two years." Given that this is a chunk of change to subtract from someone's resources, this still keeps American IT programmers uncompetitive with Indian counterparts.
What does this mean for the labor market in the United States? First of all, the emerging truth of the amount of outsourcing that is going on is discouraging students from Computer Science majors. This could be critical. The US, once a world leader in IT, is falling behind. We must have a trained workforce to be able to compete, or at least keep up with countries such as India and China, who previously sent students to the US to learn from us. Now, these students who returned to their homeland are the professors teaching students in their own country, what they once had to travel across the globe to learn.
Is the outsourcing of American jobs a good or bad idea? ... Well what is outsourcing? ... Although it is argued that outsourcing can be beneficial to America, it takes jobs away from Americans. ... All in all, outsourcing is clearly an overall harmful act toward America and its economic health. ... Outsourcing must be stopped to bring back our jobs that belong in America....
All the people in American should be concerned about outsourcing. ... Many people in America do not fully understand the idea of outsourcing. ... Paul Craig Roberts, states that, "Outsourcing America is a powerful work. Only fools will continue clinging to the premise that Outsourcing is good for America." Roberts strongly disagrees with the fact that outsourcing helps the American nation. ...
Job Outsourcing More and more American white-collar jobs are being filled or replaced by non-Americans. ... People who say that white-collar job outsourcing is good, feel that America will have no problem with the next big innovation and will create new and higher skilled jobs for Americans. ... (Outsourcing Jobs: Is it bad? ... I believe outsourcing to be good. ... Sources -Outsourcing Jobs: Is it bad? ...
Stiff penalties imposed by the United States government to prevent offshoring may damage the American economy, just when the American economy needs support. ... Pros of Outsourcing A energetic American economy can only be achieved by participating actively in the international economy. ... Outsourcing has given American companies greater cost competitiveness. ... Outsourcing the manufacturing process also enables businesses to take full advantage of the economies of scale. ... Outsourcing and manufacturing provide businesses with many benefits include: - Good international relationships - Ac...
Evidence to confirm this argument are easy to find, for example: 1) Business Week quoted a Zogby International poll from 2007 that stated that 71% of Americans believe that outsourcing jobs overseas hurts the U.S. economy, and 62% say the U.S. government should tax or legislate to try to stop the job loss. ... Other Arguments One legitimate argument against outsourcing is the environmental costs, including the greenhouse gas costs of shipping goods across the ocean, as well as costs stemming from the fact that factories in other countries do not have to meet environmental standards that area a...
Those that are against global outsourcing only have a few claims one being the loss of American jobs. This is true, there is a decrease in American jobs, but this is only temporary. ... Ultimately, American consumers get lower prices on goods and services produced at lower costs overseas. ... Corporate America can now tap into other talent worldwide. ... Even though the workers are from India, they are still well educated and trained for American jobs. ...
More often in the last three to five years, offshore outsourcing refers to the information technology work performed for American companies by overseas Information Technology (IT) companies. ... Companies across America are cutting American IT jobs and choosing offshore outsourcing to supply their IT support including programming, maintenance and program development. ... While United States manufacturers have used offshore outsourcing for many decades to lower costs, American service industries have only recently begun reaping the financial benefits of going overseas. ... For American IT wor...
Next, several financial issues can make outsourcing appealing. ... THE BENEFITS FROM OUTSOURCING Outsourcing has identified numerous potential benefits. ... THE PROCESS OF OUTSOURCING There are many ways to manage IT outsourcing since every company has different culture, strategy, structure, people, and process. ... However, I"m here going to use Xerox's outsourcing process. ... THE PROBEMS IN OUTSOURCING Many outsourcing contracts are structured for very long periods in a world of fast-moving technical and business change. ...
One should emphasis that outsourcing is an issue that is not specific to distribution. ... There are different reasons for organisations outsourcing their distribution function. ... Globalisation is another aspect which has impact upon increasing outsourcing. ... Another risk outsourcing is the impact of outsourcing on those currently responsible for management of the function is fundamental. ... Outsourcing now commonly includes asset transfers. ...
