Outsourcing: White Collar Exodus

1926 Words Nov 16th, 2011 8 Pages
While outsourcing may be beneficial to some of the companies partaking in it, the general consensus is that it ultimately proves to be harmful to the American workforce. The act of outsourcing and shifting many company call centers and technical support teams, or “low skill service jobs,” to foreign countries reduces jobs for those that could truly benefit from them within our own country. The unemployment rate has dramatically increased, and continues to rise, compared to what it has been in years past; yet there are numerous companies which still insist on handing over these “low skill service jobs” to people in other countries such as India. The most obvious and logical reason for outsourcing is reducing costs; people are working for …show more content…
Much of the information received by these call centers needs to make its way back to the parent company. This could be information needed to improve a flaw in a product, or a task that should be continued. The organization should be sure that all information is being properly relayed back and put into effect as needed.

Some providers of outsourcing may be providing the same service for several companies at the same time. Due to this, they will not be able to provide 100% of their attention to any of these companies and their quality may not be up to par. This can reflect negatively on the company as the customer calling may not be aware that the call center is being run by an outside source and they may directly relate it to the company. So unless the service being provided is truly top notch, it may prove to be less beneficial to the parent company than expected.

Though it may be cost-effective for the company to outsource a portion of their operation, there may be other costs involved. When initially setting up the operation there will be setup, building, and legal costs, as well as all the time and effort put toward setting up the entire operation. Though in the end there will be money savings, this initial setup will take a large sum of money to set up. Some organizations may not have the cash flow on hand to be able to set up such an

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