StudentShare solutions
Triangle menu

The Implications of American Outsourcing - Essay Example

Not dowloaded yet

Extract of sample
The Implications of American Outsourcing

Over the years the American economy has taken a drastic turn for the worse, especially in the realm of job sustainability. In a study conducted by the University of California, "14 million white-collar jobs are vulnerable to being outsourced offshore" (Roberts, 2005). These include jobs requiring a high-level of skill including "information technology, accounting, architecture, advanced engineering design, news reporting, stock analysis, and medical and legal services" (Roberts, 2005). According to another study done by EconEdlink, America's unemployment rate has increased alarmingly since 2001, after having experienced a period of substantial lows throughout the mid-90s. After that the unemployment rate remained somewhat steady, with a spiked increase between 2003 and 2004 followed by occasional yet not extremely noteworthy decreases. (See Figure 1 & 2 for a visual depiction of this phenomenon).
How can outsourcing be justified in the face of such figures To make matters worse, many of the persons displaced by outsourcing are those who have spent a great deal of time, money and energy at colleges or other academic institutions trying to acquire specialized skills. When education can no longer offer assurance for an individual's financial future, "the value of the investment in training, and in the individual, to promote growth in America's society, and economy, is diminished" (Torrance, 2006). In fact, it is not too uncommon to hear IT graduates mumble about how there are so few jobs available because the jobs they were trained to do are now being exported (Torrance, 2006). Consequently, professional workers affected by outsourcing must consider either negotiating lower wages or changing their vocation completely. The former option seems unrealistic especially considering "businesses who are outsourcing can set a minimum wage in developing countries that would never be accepted as a minimum wage in America" (Torrance, 2006). The latter option only exists as long as there are industries that are willing to do business primarily in the United States. If other companies also believe outsourcing will improve their profitability, then where can the American worker turn
Outsourcing proponents argue that even though outsourcing may take a few jobs away initially, in the long run it will put more money in America's pocket by lowering the cost of consumer goods and services. It will help create a sector of jobs more reliant on management and creativity than a fulfillment of 'worker-ant' responsibilities. All of this could be true as long as some form of employment remains available for Americans to earn money for spending. However, if everyone outsources it will get to the point that reduced costs won't matter because Americans simply won't have the money to ...Show more

Summary

Outsourcing, which is commonly defined as a distribution of jobs outside of a company's core of operations, especially in relation to labor allotment in other countries, has initiated a lot of controversy both among American employees and Corporate heads. Employees fear that such a trend puts their jobs at risk, while Corporate proponents argue that outsourcing significantly cuts costs, which will eventually be passed on to the consumer when purchasing goods…
Author : cora87
The Implications of American Outsourcing essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"The Implications of American Outsourcing"
with a personal 20% discount.
Grab the best paper

Related Essays

Advantages and disadvantages of outsourcing
Outsourcing has become a major business in today’s world.Most of the big companies outsource their work which is not their core operation. To understand outsourcing one has to know what does outsourcing means. Outsourcing can be defined as contracting out a work which is not the core function of the business.
9 pages (2250 words) Essay
Outsourcing
This paper begins by defining outsourcing and then describing the different forms of outsourcing. Next it outlines why organizations opt to outsource and how they select what to or not to outsource. The paper then dwells on the advantages and disadvantages of outsourcing from two perspectives: from the point of view of a company and from the point of view of the country.
19 pages (4750 words) Essay
Outsourcing implications and impacts
However,throughout the outsourcing procedure,it is essential for the company to clearly explain its particular organisational requirements,select the exact suppliers,administer the change process efficiently,manage the outsourcing relationship with suppliers effectively,and simultaneously build up a continuing affiliation with the supplier
6 pages (1500 words) Essay
Implications of Outsourcing to China
As a result of its vast scope of economic prospects as well as a favorable business atmosphere prevailing in the country, many industrialists and businessmen are really interested in outsourcing their activities to china. Even though the concept of outsourcing was pioneered by India, it was taken to new heights by China (The Top Five Rules of Doing Business in China.
5 pages (1250 words) Essay
Is Outsourcing Good for America
And that single statement spawned one of the biggest debate in America if indeed outsourcing can be good for America. But despite the debate, it is certain that outsourcing is already inevitable. In today’s globalized economy and stiff competition, one of the management tool and prerogative employed by companies is to outsource several processes of the business that it may be able to concentrate on its core business and keep up with competition.
5 pages (1250 words) Essay
Outsourcing: Theory, Literature and Effects
ourcing is actually substantial. “Outsourcing to third party firms based in other countries is commonly referred to as offshore outsourcing, and sourcing from a firm’s subsidiaries in other countries as off-shoring” (Varadarajan 2009, p. 1165). Beside “actions that are explicit referred to as outsourcing, a broad array of actions that are referred to using terms such as make versus buy, vertical integration versus vertical disintegration (contraction), disintermediation versus intermediation, and using an in-house sales force versus force affiliated with a third party firm” are used to mean the same thing: “performing an activity within versus outside the boundaries of a firm” (
10 pages (2500 words) Essay
Globalization, Outsourcing, Off-shoring, and Offshore Outsourcing Impact on Culture
First, we review historical changes from outsourcing to offshore outsourcing. Offshore services have grown rapidly in recent years. (Davis, G.; Ein-Dor, P.; King, W.; and Torkzadeh, R. 2006). The advent of the Internet in large scale operations gave industry the opportunity for more cost effective labor since the 1990s.
2 pages (500 words) Essay
Negative Effects of Outsourcing
Typical examples of outsourcing jobs include medical transcription, information technology, human resources, law, education, and accounting. It is also not uncommon for companies to outsource customer support and call center functions, manufacturing and engineering.
6 pages (1500 words) Essay
Outsourcing, good or bad
outsourcing proposes great opportunities for modern organizations to reduce financial costs and improve technology. The terms outsourcing and insourcing do not capture
10 pages (2500 words) Essay
Outsourcing
This led to numerous effects on the American populace as well as the economy. In this case, a company that bases in South Carolina plans to outsource its call center to Asia. This will lead to the loss of 120 jobs in South Carolina. Such a move raises concerns on whether
2 pages (500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation