Offshoring and Outsourcing Term Paper

1794 Words May 21st, 2012 8 Pages
Term Paper The debate of outsourcing or offshoring American jobs rather than utilizing our unemployed citizens has been a highly controversial topic in the past decade. Outsourcing has many advantages to business firms such as lower production costs, lower labor costs, improved quality of work, more time to focus on domestic operations, and increased profits which help stimulate our economy. The opposing view argues that by outsourcing jobs to other countries it is causing higher unemployment in America and stimulating the economies of other nations rather than our own by providing them with jobs, resources, facilities and capital. Though there will never be a universal agreement on this matter both sides do have merit to them and make …show more content…
Companies can now manage foreign partners in any country with use of the internet, webcams, phone conferences, and even the ability to control and monitor finances, bookkeeping, and other operations from computers at the offices here in America. Another trend America has seen over the past few decades is the shift from manufacturing to services. With the ability to outsource production jobs the American economy has been much more focused on service careers, which are something that can be outsourced to serve foreign customers but will always have a place in the American marketplace since services must be consumed at purchase, meaning to serve American customers the service providers must operate within US borders. The ease of offshoring and the benefits it provides makes the idea of global expansion very attractive, but there are still aspects of offshoring that make the concept undesirable to others. There is large opposition to the idea of outsourcing jobs to foreign countries when there is such a high level of unemployment here in America. By 2015 the number of American jobs expected to be lost to outsourcing since 2000 is 3.3 million according to a recent report by Forrester Research (“Outsourcing, PBS”). As of October 2010 the American unemployment rate is at 9.6 percent, and the fact that so many jobs are being sent overseas is disturbing to many who

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