Effects of Downsizing in the Field of Information Technology

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Effects of Downsizing in the Field of Information Technology Companies are asking for more from their employees now than ever before. By downsizing and outsourcing, and otherwise changing the corporate world for their employees, Information Technology companies have fundamentally changed the relationship between the organization and its employees. Indeed, Information Technology companies are becoming more and more eager to implement a scaled-down version of their operations as a means by which to minimize expenditures and maximize profits. "You have workers that are often difficult to train when willing, but are often unwilling to really work and earn their way" (Torres C2-6). What is the impact of such significant downsizing to…show more content…
Given the fact that the technological revolution has played an integral role in relation to the overall balance outcome, it can readily be argued that Samuelson places a significant amount of credit upon the companies that both create and utilize computer technology as a means by which to allow for "modest increases in labor costs without raising prices" (33). The author also credits corporate downsizing and good fortune (subsidized health spending, cheaper imports) as giving company executives the upper hand when it comes to stabilizing the job market. This, according to the author, is what has caused the domino influence when it comes to inflation, unemployment and the business cycle. "What's occurred in the United States is that companies have refashioned pay practices to cushion the conflict between rising wages and higher prices" (Samuelson 33). Samuelson cites a study done by economists Lawrence Katz and Alan Krueger that addresses the natural rate's decline with regard to a variety of worker segments, including older workers, temporary help and prison laborers. In examining the economists' findings, Samuelson is quick to point out that "estimating the natural rate involves much guesswork" (33), indicating that Katz and Krueger's analysis is not based entirely upon factual data. The author continues on with his own assertion as to what the future holds for downsizing, unemployment and inflation, contending that even with the guaranteed existence of
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