Outsourcing Jobs to Foreign Countries Term Paper

Download this Term Paper in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Term Paper:

Outsourcing: A Net-Positive? Positively Not

The world economy is a very different beast than it was even a decade ago. No longer are countries, industries, and companies bound by national borders or even continental structures.

Rather, the global village truly exists today, at least from a capitalistic perspective. A perfect example of this borderless world economy is the process of outsourcing.

There exist several points that politicians make in support of outsourcing in America. These points attempt to prove that outsourcing is a net-positive for the American economy. For instance, they argue economic efficiency -- that outsourcing has improved productivity and growth and has created more jobs and has left our economy stronger.

The correct string of argument, however, dictates that outsourcing is a burden on our economy. How can outsourcing possibly be a positive force for our economy and help us when in reality it forces jobs outside of the country -- creating a net job loss for Americans?

No, in reality, outsourcing only hurts America. We lose jobs while workers in other countries who do not pay our taxes or pay into our social security benefit from cheaper labor rates.

Outsourcing (or contracting out, from its earlier iteration) is most frequently defined by economists and policy makers as the delegation of non-core operations or jobs from internal production to an external entity (such as a subcontractor) that specializes in that operation.

Outsourcing is an economies of scale and labor cost decision that is often made to focus on core competences. One particular portion of the term (offshoring) also means shifting jobs and departments and competencies to another country, either by hiring local subcontractors or building a facility in an area where labor is cheap -- this, of course, is the focus of this position paper. Offshoring became a popular buzzword in business and management in the 1990s. EDS -- Ross Perot's venture -- was the first company to establish the outsourcing business.

Outsourcing is defined more particularly today as the management and/or day-to-day execution of an entire business function by a third party service provider.

The overhead costs associated with customer service -- the function that is typically offshored -- are typically lower in situations where outsourcing has been used leading to many companies, from utilities to manufacturers, closed their in-house customer relations departments and outsourced their customer service to third party call centers. The next analytical extrapolation of these decisions was of outsourcing labor overseas to countries with lower labor costs, this trend is often referred to as offshoring of customer service.

Due to this huge type of demand, call centers have sprung up in India, Pakistan, the Philippines, Canada and even the Caribbean. Many companies, for instance most notably Dell and AT& T. Wireless, have gained significant negative publicity for their decisions to use Indian and Pakistani-based labor for customer service and technical support; one of the most prominent complaints being the expectation that the replacement staff will have more trouble communicating with customers.

Outsourcing and out-tasking focus on the transfer of a significant percentage of management control to the supplier. Buying products from another corporation is not considered outsourcing or out-tasking, but just a vendor relationship between the two companies. Similarly, purchasing services from a provider is not necessarily outsourcing or out-tasking. Outsourcing always involves a considerable degree of two-way information exchange, co-ordination, and trust.

Companies that provide such offshoring services feel that outsourcing requires the turning over of management responsibility for running a segment of business. On paper, this industry and process segment must not be a core competency, or associated with the core business of the organization, but practice often dictates otherwise.

In fact, many organizations seek to leverage expert organizations in the areas targeted for outsourcing. Business segments typically outsourced include Information Technology, Human Resources, Facilities and Real Estate Management and Accounting. Many companies also outsource customer support and call center functions, manufacturing and engineering. Outsourcing business is described, increasingly, by expertise not inherent to the core of the client organization.

A related term is out-tasking: turning over a narrowly-defined segment of business to another business, typically on an annual contract, or sometimes a shorter one. This usually involves continued direct or indirect management and decision-making by…[continue]

Cite This Term Paper:

"Outsourcing Jobs To Foreign Countries" (2005, October 24) Retrieved October 27, 2016, from http://www.paperdue.com/essay/outsourcing-jobs-to-foreign-countries-69674

"Outsourcing Jobs To Foreign Countries" 24 October 2005. Web.27 October. 2016. <http://www.paperdue.com/essay/outsourcing-jobs-to-foreign-countries-69674>

"Outsourcing Jobs To Foreign Countries", 24 October 2005, Accessed.27 October. 2016, http://www.paperdue.com/essay/outsourcing-jobs-to-foreign-countries-69674

Other Documents Pertaining To This Topic

  • Outsourcing Jobs to Foreign Countries

    Outsourcing is an inevitable market reality, however, adequate measures must be taken to support the displaced employees, and to retrain them for better employment prospects. Outsourcing has become a highly controversial and much debated issue over the last few years. The economic dynamics of the 21st century have vastly altered the mode of business. While globalization has opened new markets for companies, at the same time, it has forced them to

  • Outsourcing Jobs or the Practice

    The U.S. Department of Commerce reports that services to foreign clients brought Americans $131 billion in 2003. This was in addition to offshore services for U.S. customers, which grew by $7 billion. The report shows that labor-intensive production and administrative work has grown in low-cost places, while talent sensitive activities have grown in the United States (Malachuk, 2004). This is a major benefit of outsourcing. Weidenbaum (2005) argues that many American employees

  • Outsourcing and Labor Unions

    Outsourcing Jobs and Labor Laws Outsourcing Jobs to Foreign Countries Without Fair Labor Laws government currently does not prohibit companies from outsourcing jobs to foreign countries that do not have unions and/or fair labor laws. Whether this practice is acceptable or should be stopped is worthy of consideration. There are two main reasons for researching this topic. First, the cost to outsource to foreign countries is often much less than the cost

  • Outsourcing Jobs to India Outsourcing

    They grant significant respect to women, which allows them to easily adapt to the workplace. Humor is not valued within the Indian workplace, their culture encouraging formal relationships between employees. The Work Environment in the U.S. The U.S. work environment is significantly different than that in India. The business environment in the U.S. is results-oriented, encourages and support performance, efficiency, and productivity. The U.S. managers are trained in time management, given

  • Outsourcing Companies First Outsourced Manufacturing

    In addition research has found that estimate that nearly 252,000 computer programming and computer software engineering jobs could be outsourced 2015(Zarocostas). However, 1.15 million new IT jobs could be produced by 2012 (Zarocostas). In addition to the increased number of jobs that are being outsourced. Such outsourcing impacts the economy in many ways. Although many argue that outsourcing has a positive effect in the long run, for many workers outsourcing

  • Outsourcing What Is Outsourcing Outsourcing

    S. What kinds of jobs? What countries? Starting around in the initial part of 2004, writings started getting published in the mass media opposing that "insourcing" - supposedly shifting jobs from the outside the U.S. into the U.S. is bigger than "outsourcing." This might seem difficult to accept as true, however there is a basis for accepting it as true. (Globalization: the Outsourcing-Insourcing Issue) "In-sourcing" produced a considerable range of comparatively

  • Jobs Overseas and the Effect it Has

    Jobs Overseas and the Effect it has on Employees in the Financial Industry: A Correlational Study After globalization Global changes in the banking and financial sectors have cause flow of not only work but finance to countries that were unreachable like China and Indian have opened markets globally owing to the international and U.S. pressure after globalization. The need to invest in these countries stem from the fact that Indian market

Read Full Term Paper
Copyright 2016 . All Rights Reserved