Outsourcing Jobs: Economic Impact and Worker Support
This paper explores the phenomenon of offshore outsourcing as an economic reality shaped by globalization and competitive pressures. It examines the arguments both for and against outsourcing, surveying evidence on job losses in the IT and customer-support sectors alongside data showing broader gains in U.S. employment. Drawing on statements from economists, government studies, and corporate examples, the paper argues that protectionist measures would harm the U.S. economy more than help it. It concludes that outsourcing, while inevitable, must be accompanied by effective federal assistance programs and corporate retraining initiatives to support displaced workers.
- Introduction: Outsourcing as a Modern Business Reality: Outsourcing's rise as a competitive global business model
- The Case Against Outsourcing: Job Losses and Concerns: IT and service sector job losses to offshore locations
- The Economic Benefits of Outsourcing: Cost savings and net employment gains from outsourcing
- The Law of Comparative Advantage and Global Trade: Why protectionism would harm the U.S. economy
- Regulation, Worker Assistance, and Corporate Responsibility: TAA program reform and corporate retraining initiatives
- Conclusion: Outsourcing is inevitable; displaced workers need support
✍️ How to write this paper — guide, tools & examples ▾
What makes this paper effective
- Balances opposing viewpoints by presenting both the drawbacks and the economic benefits of outsourcing before arriving at a reasoned conclusion.
- Grounds claims in specific quantitative evidence — employment figures, cost savings, and percentages — which lends credibility and precision to the argument.
- Draws on a diverse range of sources including economists, government studies, corporate examples, and industry bodies, demonstrating broad research engagement.
Key academic technique demonstrated
The paper employs a classic pro-con synthesis structure: it first acknowledges and validates the strongest objections to outsourcing, then systematically counters them with data and expert opinion. This technique — conceding a point before rebutting it — signals intellectual honesty and strengthens the credibility of the final argument.
Structure breakdown
The essay opens by contextualizing outsourcing within globalization, then devotes one section to the opposing view (job loss concerns) and two sections to the affirmative case (economic benefits and comparative advantage). A penultimate section pivots to policy solutions — the TAA program, insurance schemes, and corporate retraining — before a conclusion that draws an analogy to workplace computerization to reinforce the inevitability argument.
Introduction: Outsourcing as a Modern Business Reality
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, it has simultaneously forced them to seek ways to be more productive and competitive. This drive for competitive advantage has resulted in many U.S. companies moving their non-core jobs — and in some cases, core jobs as well — to offshore locations that offer both cheap labor and quality output.
Outsourcing is not a totally new concept. Companies have long outsourced their training operations, clerical work, shipping, and forwarding operations. However, the surge in information technology has brought about a paradigm shift in the way organizations operate, and outsourcing has emerged as a new business model (Fred Luthans). While improving productivity and cutting costs for organizations, outsourcing has also created a significant problem in the loss of jobs in the local economy. A brief overview of the subject and a discussion of the pros and cons surrounding the issue provides a clearer picture.
The Case Against Outsourcing: Job Losses and Concerns
The main argument leveled against the outsourcing of jobs to overseas locations is the loss of employment in the local environment. Of immediate concern is the loss of jobs in the IT and customer support sectors in particular. Big corporations have started to shift their customer care centers to India, the Philippines, and China. It is also an established and growing trend that many major American corporations are relocating their research and development facilities to offshore locations. For example, software giants such as Oracle and Microsoft have moved part of their research and development operations to Indian units. Similarly, in the banking sector, the World Bank, ABN Amro, and many others have shifted their back-office and accounting operations to India (Wharton School). The net effect has been the loss of around 400,000 U.S. IT jobs to offshore locations.
Bibliography
1) Murray Weidenbaum, "Outsourcing and American Jobs," accessed October 9, 2005,
2) The Detroit News, "Policy Focus on Jobs Outsourcing Is Misplaced," accessed October 9, 2005, http://www.detnews.com/2004/editorial/0410/15/a12-301604.htm
3) Alan Reynolds, "Exporting Tech Jobs to India," January 2004, accessed October 9, 2005,
4) William V. Bandoch, Jr. and Walter Block, "The End of the World As We Know It?" accessed October 9, 2005,
5) Winston Chai, "Indian Outsourcing Saves U.S. Jobs," July 2003, accessed October 9, 2005,
6) Karen Guglielmo, "Is Offshore Outsourcing Worth the Loss of IT Jobs?" accessed October 9, 2005,
7) Daniel W. Drezner, "The Outsourcing Bogeyman," June 2004, accessed October 9, 2005, http://www.foreignaffairs.org/20040501faessay83304/daniel-w-drezner/the-outsourcing-bogeyman.html
8) Fred Luthans, Organizational Behavior, McGraw-Hill International Edition, 8th ed., p. 541.
9) Matt Hines, "Greenspan Warns Against Fighting Outsourcing," accessed October 9, 2005,
Create your account
Always verify citation format against your institution’s current style guide requirements.