Outsourcing In The Airline Industry

Instead of relying only on domestic workers, many companies also outsource some of their labor into foreign markets. This practice can have negative effects on the economy overall, individual businesses can often benefit from this practice. Outsourcing offshore can allow companies to tap into foreign markets and expand their businesses.

* Labor outsourcing is a good strategy to decrease the labor cost. But it associates with many issues. Once outsourcing is done, the MNC cannot just stay behind. The MNC should carefully supervise on the working conditions, safety, wages, working hours, gender discrimination and human rights violations. If any of these factors going wrong and leads to sweatshop conditions, it directly affect on the reputation of the MNC. If once the name or the brand is blacklisted, it is very hard to repair the damage. Therefore, the risk of outsourcing is high.

The Airline industry is a large and constantly growing industry. It facilitates economic growth, international investment and world trade and is therefore central to other industries as well for globalisation. There are various forces which lead to globalisation in airline industry. Key drivers of change are forces likely to affect the structure of an industry; sector or market. (1).

Many businesses in United States manufacture their product overseas. This involves manufacturing products outside United States where the labor cost is cheaper. Because of cheap labor, it is often more economical for a U.S. company to manufacture overseas and pay the shipping costs than to manufacture in the United States. For a company, the savings may be substantial. However, there are negative impacts on U.S. employment, as many jobs in the United States are being outsourced and replaced by overseas positions. The manufacturers outsource production projects to save time, money or resources. The manufacturing is outsourced so as to remain competitive and maintain a steady work flow. Without outsourcing, manufacturing costs could escalate to the point at which no product would sell and all employees would have no work. Outsourcing comes

The sector employs more than 3 million people. Prior to the 1990’s, the air transport industry in Europe had been traditionally highly regulated and dominated by national carriers and state owned airports. Since then a single market for aviation has been created. The single market has seen the removal of all commercial restrictions for airlines flying within Europe. These include restrictions on routes, number of flights and the setting of prices.

Despite that an excessively excellent image of outsourcing was provided to individuals one or two of years back, the truth check they were confronted with shattered the dream badly. Recent statistics reveal that over four-hundredth corporations are concerned either in experimenting or are already engaged in shifting their services overseas in search of low-cost labor and services that are being provided by countries like China and Bharat. Such efforts have left native market labor at extreme disadvantage wherever they're finding it vastly tedious to create each ends meet, leave behind the back-breaking burden of taxes they're being obligatory to. With over four-hundredth major company executives registering their opinion by discouraging the method of outsourcing the controversy that was antecedently being won by the

A large majority of the American people are against outsourcing because it leads to fewer jobs, unemployment, and the negative impact it has on our economy. Moving a company to a place with cheaper labor and such causes thousands to lose their jobs and it also leads to less jobs that Americans can have. Outsourcing is only good for big businesses, not the people who work there or the smaller businesses around. It also has a negative impact on our economy. Although you are producing things at a cheaper price and selling it on the cheap doesn't mean people are able to buy it. If you get rid of jobs and cause unemployment, less people can purchase things and circulate our money. Our economy is built on the fact that people are able to purchase products. When that goes away

Seventy percent of the aircraft’s production and designing was outsourced to over fifty Tier 1 suppliers compared with only thirty-five to fifty percent that was traditionally outsourced in the production of other aircrafts (S. Tang and D.Zimmerman, 2009: 77). In late 2008, over twenty-seven thousand Boeing employees went on strike due to the company’s outsourcing policies and what its effects on job security (Doornbos n.d.). The strike lasted for fifty-seven days and it would cost Boeing a total of three months in production time, an estimated $100 million a day in revenue, and approximately $7 million a day in net income (Isidore

It ends up putting our country farther into its trillions of dollars in debt. “Eight of the biggest U.S. technology companies added a combined $69 billion to their stockpiled offshore profits over the past year, even as some corporations in other industries felt pressure to bring cash back home (U.S)”. Eight of the top technology companies,including Microsoft, Apple and Google, now account for more than a fifth of the $2.10 trillion in profits that U.S. companies are holding overseas. “The amount of unrepatriated foreign profits reached $2.4 trillion, according to Citizens for Tax Justice, allowing companies to avoid up to $695 billion in taxes

The U.S. economy has seen many hardships within the last decade. The economy has suffered from a recession that is still threatening to cripple some Americans and unemployment has been at an all time high. People have lost homes and jobs and many businesses have gone bankrupt simply trying to survive. However, in the midst of this economic crisis some companies have managed to survive. Many companies, approximately 36% of them, have found a way to avoid economic collapse by cutting costs (Job Outsourcing Statistics, 2014). One of the most popular cost reducing strategies of our time is called outsourcing.

As the problem of job outsourcing becomes more of an issue in politics, elected officials like the President and Congress will no longer be able to ignore the dilemma. The war in Iraq has been at the forefront of the presidential race but the importance of outsourcing

To begin with, some people are against it because the use of outsourcing takes the jobs that could be filled by Americans and gives them to people in other countries.The opportunity for an American to provide for his family is swept off beneath him when these jobs are given to people of other countries.A great example is one from the article “The Cost of American Outsourcing”. The Company “Whirlpool” closed it’ refrigeration assembly line in order to move it down to Mexico in which it left more than 1,200 Americans without jobs.In most cases these people

September 11, 2001, was a horrific event that rocked the world and the way people viewed the safety of airline travel. The airline industry was hit the hardest after that day and it was uncertain if they could regain their customer’s

In analyzing the second reason listed for why outsourcing is used; ‘inability to attract the highest caliber of employees to job functions that may be peripheral to the organization’s core discipline’, companies employ a different kind of outsourcing tactic. This reason leads to offshore outsourcing solutions. If a company cannot attract high caliber domestic employees to job functions secondary to their main function then they seek help where labor may be less expensive and more efficient.

Within my small organization 50% or more of my day is spend on power points, support documentation, and sales calls. Our resource pool is shallow being a startup and some day we will implement the “magic button”. The only aspect that I am uncomfortable with regarding outsourcing is using overseas labor when someone in the USA could perform the same job for a slightly higher price. Although the organization saves money in the short term, the economic strain by outsourcing overseas has long a long-term impact on the local economy. The utilization of temp workers has become more prevalent with workforce globalization.