This website uses cookies to ensure you have the best experience. Learn more

Outsourcing American Jobs Essay

1564 words - 6 pages

Outsourcing of American jobs overseas is displacing American's in the United States. American blue-collar workers and the Middle Class American will soon be a word of the past if the US government continues outsourcing the low-skill jobs overseas.

One of the concerns in regards to the outsourcing of jobs is that wages of American jobs versus the wages of the Chinese, Japanese, Indians and Philippians are much less. If these workers were using the same identical technology and having the same identical skills were paid the same wages, there would be no problem. (Greene, 2006) It's also believed that if the US continues to trade freely with the overseas countries then the powerful drag of their far lower wages will begin dragging down American's average wages. (Greene, 2006)

Economist has found that tax cuts offered to large manufactures have caused productivity to go up. The manufactures are actually given tax breaks to be able to purchase more machinery to do the jobs and therefore fewer laborers are needed, causing a large number of workers to be displaced. The tax act that was initiated by Bush administration for big businesses was the "bonus depreciation". Under this act the more the companies spend on equipment the less the tax they have to pay.

The American economic recovery is several years old but yet jobs and workers income have failed to recover as it has in the past. It is estimate that the outsourcing of jobs is swiftly moving up the chain to skilled and specialist workers. The question remains is anyone safe from outsourcing? (Business Week p.26)

What is Outsourcing?
Outsourcing is transferring services or operating functions that are traditionally performed internally to a third-party service provider and controlling the sourcing through contract and partnership management (Roberts, 2001). It is a concept that has evolved from a manufacturing perspective to a strategic perspective, which views the concept as a way for organizations to focus and be more competitive. The basic premise of outsourcing is that a specialist organization can perform a particular service more efficiently than can internal operations because a specialist organization has an inherent advantage in producing and delivering a service. Superior technology, management skills, or economies of scale may contribute to this perception. The type of sourcing relationship depends on whether a long-term or short-term need exists. To save funds used for benefits for regular employees, temporary workers are hired. In this case, the organization (outsourcer) provides all necessary resources except the workers, who are provided by the vendor. For long-term services, the vendor has full responsibility for delivering the service; the outsourcer provides only a liaison.

The Negative
As with so many global trends, there is significant disagreement over the implications of global competition in services for...

Find Another Essay On Outsourcing American Jobs

Outsourcing - The trend of American business' outsourcing jobs in order to save money

1410 words - 6 pages savings in India were three to one. But the difference in productivity was six to one."Outsourcing in the U.S.A study from Duke University's Fuqua School of Business and Archstone Consulting says that American companies with offshore operations (of which 69% are in India, so far) plan to ship out 81% more research jobs, 55% more in engineering, and 75% in human resources.At the organizational level, outsourcing represents a basic restructuring of

Outsourcing of Jobs Essay

1115 words - 5 pages As Jim Pinto says in an article published on ISA, “…global outsourcing has a negative connotation—it means firing American workers and shipping jobs to less-developed countries where wages are low and labor laws are lax.” For these reasons, outsourcing has grown because companies believe they save money, time, and effort by moving jobs to other countries. However, outsourcing and offshoring jobs to foreign workers hinders the development and

Outsourcing Jobs to Foreign Countries

1210 words - 5 pages The American workforce is made up of Americans by birth, Americans by naturalization and permanent residents with visas. We know some of this workforce has been outsourced. The North American Free Trade Agreement (NAFTA) promised more jobs with higher earning potential. However, this has not happened, instead the American workforce has suffered. Outsourcing and foreign worker visas have severely impacted American jobs.It does not take a rocket

Outsourcing Jobs to Foreign Countries

1237 words - 5 pages The American middle class is in danger of becoming defunct by the outsourcing of jobs to foreign countries. Jobs that Americans once considered stable long-term employment are now being outsourced at a rising rate. If this trend continues, America could be the next third world country. How has this happened? What can the average American do about it?Outsourcing is not a new concept. As early as the 1900's the U S Government was outsourcing jobs

Shifting jobs overseas, with outsourcing

515 words - 2 pages Americans have been discussing the issue of exporting of jobs since 1992 when American jobs moved to Mexico because of the North American Free Trade Agreement.Today, the U. S. corporations are continuing to exporting jobs in China, India, States of South America, North Africa, and East Europe.Many American cities have been landlord's markets for long time renting and selling office space to corporation for good price. This city strategy resulted

What are the ethical issues concerning the outsourcing of jobs by the business community to our society in general?

1220 words - 5 pages outsourcing experienced in America would be considered un-ethical for the following reasons:1) American citizens who are educated in America for the purpose of employment within America, are displaced from jobs by foreign workers;2) Outsourcing lacks regulation to protect personal and sensitive information; 3) The American government offers no effective solutions to address these repercussions by re-training and re-employing displaced workers, and by

The Benefits of Offshore Outsourcing

968 words - 4 pages major effect offshore outsourcing has is that it brings about new and different types of jobs. The short term effect of offshore outsourcing is the loss of jobs onshore. However, Daniel Drezner believes that offshore outsourcing will bring about job growth and an increase in wages to American workers. He writes that critics are trying to blame the economy’s sluggish state on offshore outsourcing. In response to this he writes, “Believing that

What is outsourcing

2180 words - 9 pages outsourcing takes jobs away from all of the hard working Americans.” In either case, outsourcing has raised great concerns over its effects on the American economy. In this paper, I will discuss the types of outsourcing, pros and cons associated with outsourcing, management views of outsourcing, employee views of outsourcing, and give my opinion of outsourcing. What does outsourcing do? It enables companies to focus on the mission at hand, to save

The Effects of Outsourcing in America

1354 words - 5 pages “It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy” (Taylor). This quote by Adam Smith, cited by Timothy Taylor, defines outsourcing as a task that can be done within a group, but is instead done by a third-party group for less money. While outsourcing service benefits American firms, studies show it takes jobs from middle-class Americans and adversely affects the

Outsourcing, Good for Business?

825 words - 4 pages trouble the American workforce. More and more Americans are starting to fear that their jobs might be at risk due to outsourcing. In the beginning, outsourcing was used for menial, factory jobs that offered low pay and had a strenuous schedule. However, in recent years, jobs that are more prestigious have been outsourced as well. For example, many engineering and computer technician jobs have been outsourced. These computer technician and

Job Outsourcing

548 words - 2 pages ; The exportation of jobs offshore is job outsourcing. This, to some, is believed to be a benefit to our economy. According to a brief report from the National Center for Policy Analysis, “Increased economic globalization has caused jobs to move to the United States as well as away from it, and because of the higher, increasing productivity of American workers, the jobs that move here pay more than the ones that leave”. In addition, the report

Similar Essays

Outsourcing American Jobs Essay

1609 words - 6 pages Outsourcing American Jobs Outsourcing, no word in today's workforce is so loved or hated. Depending on who you are it is the greatest thing ever or an evil act by money hungry businesses at the expense of American workers. But what is the truth? Is it good? Is it bad? Is it both? Perhaps more importantly, what is it exactly? Many people think that outsourcing is jobs that were held in this country going somewhere else. That is not

The Outsourcing Of American Jobs Essay

1021 words - 4 pages The Outsourcing of American Jobs      The exporting of American jobs is an issue that is important and will become increasingly so as more and more white collar jobs are shipped overseas. American companies in the past few decades have been sending American jobs overseas paying residents of other countries pennies on the dollar what they had paid American workers to do. This saves the companies millions of dollars on labor costs but costs

American Airlines Plans Of Outsourcing Jobs

1436 words - 6 pages choose to outsource those jobs. They think they can get it done cheaper. I don't think so." Even though, outsourcing these jobs to Hong Kong could cost the staff in the maintenance department to lose their job, it could really beneficiate American Airlines by saving more money on costs and expenses of their direct materials, direct labor, and manufacturing overhead. For example, according to the American Airlines financial report, the maintenance

Morality Of U.S. Corporations Outsourcing American Jobs To Foreign Countries

2114 words - 8 pages This paper argues the morality of U.S. Corporations outsourcing American jobs to foreign workers in other countries as well as the same corporations importing foreign workers to replace large numbers of their existing U.S. employees with lower wages and reduced benefits. The greed of American corporations is discussed and the impact their actions have on the U.S. economy and its citizens. The moral theory of Utilitarianism is examined to