Do the Benefits Outweight the Failures of Outsourcing Essay

‘Is your job next?’ headline blared, followed by the disturbing preview of the article inside: “A new round of globalization is sending upscale jobs offshore. They include chip design engineering, basic research— even financial analysis. Can America lose these jobs and still prosper (R. Hira, 2008, p-1)?” The reaction of this news was swift and divided. Definitely large corporations that will be outsourcing will make huge profits in the long run but “what about the American citizens?”

Outsourcing is a method used by many corporations in which their products are manufactured in foreign countries often for cheaper labor.This method method of productions has it’s pros and cons.

As the world has gotten “smaller” in terms of trade, outsourcing has become a hot topic in much political and economic debate in the United States.

Everyone tries to achieve the American dream, which is the opportunity for prosperity, success and upward mobility. For a lot of people, they get nowhere near their American dream because they are struggling trying to make a living. Lots of people are losing their jobs due to outsourcing which leads to people not attaining their goals of being in the higher class or even middle class status. So, what exactly is outsourcing? Outsourcing “occurs when an organization transfers some of its tasks to an outside supplier” (Gnuschke 1). In other terms, outsourcing is when a company shifts its business to a different country to produce goods and services at a much cheaper rate. A lot of people argue that outsourcing is bad for America while some people believe that outsourcing is actually beneficial for America. While outsourcing causes goods to price drop in America, outsourcing causes a lot of jobs to be lost which can cause an

     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 Americans precious jobs.

It is difficult to determine whether offshore outsourcing has a positive or negative effect on the U.S. economy. It may actually depend on which perspective you take on it. As stated by Hira and Hira (2005), outsourcing in the services sector is a major shift in how the economy operates and will have serious impacts, both positive and negative, on the trajectory of economic growth, distribution of income and the workforce. However, there are many factors to take into account when considering globalization. Companies must familiarize themselves with the various rules and regulations of global business, tariffs, trade agreements and barriers, and decide how to go global; global consistency or local adaptation. All of these issues affect

Development of specific skills: Out sourcing benefits the development of specific skills at a corporation level the same way off shoring does at a global level. Companies outsource in order to take advantage of specialized skills and knowledge that itself does not own or that can’t be efficiently acquired. In this case out sourcing leads to higher efficiency and better quality provided by third parties for a specific business processes. Moreover the third parties can further specialize to take advantage of the resulting economies of scale and mitigate the possible shortage of specific skilled and talented workers.

In business, the outsourcing involves the contracting out of a business process to another party. In this case, USTech has outsourced its product to TaiSource. As a result, USTech enjoys TaiSource’s world-class research, design, and lower manufacturing costs. USTech gets the benefits of direct sourcing in China without the hassle of coordinating it. But this behavior has some inherent limitations. USTech is afraid that TaiSource could reap its confidential information and start its new brand in Mainland China. Therefore, a global enterprise should weigh the pros and cons of its outsourcing strategy.

Abstract This paper will discuss offshore outsourcing and the effects it has on the American worker in a technology environment. We begin with the scope of the problem and how it has changed the economy for better and for worst. Various figures representing miscellaneous data about off shoring will be represented. The topics include the background and nature of offshore outsourcing, reasons for outsourcing, why trading promotes gain, current economic standing from outsourcing, and finally how outsourcing affects wages and employment. In the summary various solutions and ideas are given to propose a change to the industry in hopes that the American worker will be more prosperous from an economic standpoint.Introduction

Outsourcing was not the only way low-wage foreign workers affected the work force in the 1800s. There were also millions of immigrants added to the workforce. When that many new workers were added to the labor force, of course it was not without effect on industrial wages—they were driven down.

“The rights of every man are diminished when the rights of one man are threatened” (Kennedy, 1963). Continuous improvements in technology capabilities have provided companies with tools to more easily conduct business on a global scale. However, when conducting business with different cultures, you risk different ethical standards. Companies should be accountable for ensuring their product or services can be received by the consumer in good conscience, void of human ethics violations, regardless of where the product or service originates; and consumers should not patronize companies that cannot ensure this trust.

“Outsourcing is the transfer of control of a process or product to an outside supplier”(Hasan).

What is outsourcing? We have all heard the term thrown around but what does it really mean? Outsourcing is defined as contracting, sub-contracting, or 'externalizing' non-core activities to free up cash, personnel, time, and facilities for activities where the firm holds competitive advantage(BD,09).Outsourcing happens when company’s choose to purchases their needed products and or services from an outside supplier ( mainly other countries), rather than doing the same work within their own facilities.

In the current business world, cutting costs and allocating resources with the best quality is one of the most widespread and familiar concepts to many business owners. To achieve proper efficiency and effectiveness, outsourcing seems to be common among different types of businesses, not just ones with larger amounts of profit or total assets. Seeking outside help through various countries is one of the key factors that can assist with the potential reputation of a business because cheap labor and satisfactory quality push for better organizational structures. Benefits such as these have evolved into becoming the norm for companies to follow; in Chapter 6 of Contemporary Management, global outsourcing demonstrates a positive effect on businesses and ties into the notion of globalization, which can connect individuals through overseas market strategies.

The precise meaning of culture seems too difficult to grasp, but it might be described as shared values, behaviors and assumptions that distinguish one group from another and are passed on from one generation to the next (Schein. E, 1990). Culture can leave a very significant influence on cognition and perception without even being aware of it (Schneider S.C., Barsoux J.L. and Stahl G.K., 2014). So culture differs from country to country at some extent. National cultural differences is the top reason why an alarming rate of up to 70% of joint ventures fail (www.ugmconsulting.com). Also, it is of vital importance when dealing with cross-border management issues. Therefore, this reflective essay aims to critically evaluate four