Psychology AFL-CIO's Perspective Of Off-Shoring, Thesis

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While some corporations have announced they are bringing outsourced jobs back home, (Sallie Mae, the student loan firm, just announced it is bringing 2,000 jobs back to America), others are sending more jobs than ever to foreign countries. Just a few days ago, Xerox announced plans to send thousands of jobs to an Indian outsourcing firm, ceasing operations of one of its divisions in North America (Jones, 2009). The economics are clear. It saves corporations money to send jobs overseas, because they pay far lower wages to foreign employees, and their operating costs are much cheaper. However, there is news that Indian outsourcing is becoming more expensive, which may cause some companies to bring jobs back home. In the sinking economy, the dollar has been sinking too, and that means it buys less in places like India, which is one reason costs are rising. Real estate in India is expensive too, so it is costly to build new operations there. India has raised taxes too, in order to gain financially from outsourcing, so companies are moving to other countries, such as Mexico, to save even more money. Initially, businesses could save 50% or more by moving jobs off-shore, but today, that has been reduced...

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It is detrimental to the country, the country's workers, and the economy, and it sends much needed jobs overseas at substandard wages that increase poverty and add to the social problems of the host nations. Off-shoring is un-American, and the practice of off-shoring should be severely limited in this country.

Sources Used in Documents:

References

Editors. (2004). Outsourcing America. Retrieved 9 April 2009 from the AFL-CIO Web site: http://www.aflcio.org/aboutus/thisistheaflcio/ecouncil/ec03112004i.cfm.

Jones, I. (2009). Xerox strikes outsourcing deal with HCL Technologies. Retrieved 9 April 2009 from the Reuters.com Web site: http://www.reuters.com/article/innovationNews/idUSTRE5342R120090405.

King, R. (2008). The new economics of outsourcing. Retrieved 9 April 2009 from the BusinessWeek.com Web site: http://www.businessweek.com/technology/content/apr2008/tc2008043_531737.htm.

Krishnan, J.K. (2007). Outsourcing and the globalizing legal profession. William and Mary Law Review, 48(6), 2189+.


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