The term outsourcing refers to the act of contracting out business activities and procedures to a third party. The act of outsourcing sometimes involves the transfer of assets from one organization to the other. The term is also used to describe the act of handling the control of public services to the private corporations. Outsourcing mainly involves both the local and foreign contracting. At times, the term is used to describe relocation of business organizations to another country which is a also known as off shoring. This term is very popular in the U.S especially in the 21st century (Davies, pg. 21). The main motivation for the activity of outsourcing is the financial saving due to the reduced international labor market rates. The …show more content…
The American labor markets have been severely affected by the increasing outsourcing as this has seen the market to lose a great number of the their services thus making a significant number of the skilled workers to lose their jobs while those who are undergoing their training programs are not sure whether they will secure a job in the country not. That means if they will not find one then they will have to opt to be self employed, jobless or opt to outsource their skills to foreign countries. This has led to more American workers who are trained to look for jobs that they do not fit or that which they are not trained to perform due to lack of job that they are specialized in as the companies have taken the operations to other countries like China and India (Anil, pg. 7). These two countries have taken the big share of the American manufacturing industries that have outsourced their services. Thus the labor market is logged with competent workers who have he required skills but that are contributing nothing or less t the growth of our economy.
Outsourcing has resulted into some companies reducing their workers as they have taken most of their manual operations to foreign countries thus they do not requires a large working number of employees as in the previous situation. Previously, everything was done locally from production, warehousing and distribution where as today these companies have taken almost 60 to 75 percent of these
Outsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due to the efforts of corporations when they began to hire labor forces across the world. Even though outsourcing has come out from its developing stages, there are still following effects on the US economy.
The phenomenon has created major suffering for many American and as this outsourcing continues to spread, Americans will demand action (R. Hira 2008, p-95). The book also adds that scholars Ralph Goory and William Baumol have shown that even when the basic model of the economics are used trade does not make both the trading partners better off. The trading in one country will have a negative impact while trading in other country will have a positive impact. The country with negative impact will definitely affect its economy. United States economy being the world’s largest economy; historically, it has maintained a stable GDP growth, a low unemployment rate, a high level of research and capital investment funded by both national, and because of increasing saving rates, increasingly by foreign investors. But offshore outsourcing has increased the unemployment rate dramatically in the decade. And so the economy worsened day by day.
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.
Because many businesses in the US have more often began outsourcing different business products instead of doing them in-house, it is important to understand why outsourcing may be the best option. Although many tie outsourcing to foreign markets, outsourcing can include both foreign and domestic markets. By entering into a contractual agreement, outsourcing allows organizations to pay for services they need. This gives the option for a business to get professionals to perform services for them that the business may not have the staff for. Outsourcing provides a cost saving-strategy that is usually more affordable. Ultimately,
Returning to Mexico after seventeen years of living in the United States gave me an overwhelming sense of nostalgia. Walking down the streets of San Cristobal de las Casas, Chiapas, had a familiar feel, like being home. San Cristobal de las Casas, which is a relatively small city in the highlands of Chiapas, is plagued with poverty rooted in its colonial history. Many streets bustle with people from all over the world near the zocalo, which is a public plaza in the center of the city filled with coffee shops, intellectuals, indigenous children, and adults. As you walk by you can overhear people speaking in unfamiliar languages. While sitting outside at a coffee shop I became
In general, the outsourcing is hiring the foreign workers/company to do a particular task, as opposed to hiring domestic workers/company. Besides the outsourcing, the international purchase is an essential activity of companies. In the trend of a booming global economy, a company only focuses on its core value and hire suppliers to supply the necessary product and service. The relationship between companies are complicated and interdependent.
You may have been asked if your job is next with the recent outbreak of shipping American jobs overseas. Lately, all of the corporate talk is about outsourcing and how it’s helping American companies grow, but what is not talked about is how it’s going to effect the American economy in the next few years and what should be done to stop it. Outsourcing is a modern plague that is killing the American dream. Its long-term effect is catastrophically damaging to the American economy and Americans need to step up their educational expectations, skill sets and motivation if they are to keep that long-fought for dream alive.
It is a concept that has evolved from a manufacturing perspective to a strategic perspective, which views the concept as a way for organizations to focus and be more competitive. The basic premise of outsourcing is that a specialist organization can perform a particular service more efficiently than can internal operations because a specialist organization has an inherent advantage in producing and delivering a service. Superior technology, management skills, or economies of scale may contribute to this perception. The type of sourcing relationship depends on whether a long-term or short-term need exists. To save funds used for benefits for regular employees, temporary workers are hired. In this case, the organization (outsourcer) provides all necessary resources except the workers, who are provided by the vendor. For long-term services, the vendor has full responsibility for delivering the service; the outsourcer provides only a liaison.
Outsourcing is a process in which large corporations move various jobs such as: production of goods, online coding, telemarketing, and human recourses to name a few to foreign countries in order to cut down on employment rates, and raise their profit margin. Moreover, the low amount companies pay overseas employees, lower standard of work environment, cutbacks on various fees that are usually found in the U.S., and much more make outsourcing seem very desirable. However, outsourcing can be argued as favorable, or unfavorable depending on the audience, and their outlook on the issue. I personally side with the viewpoint that outsourcing long term is unfavorable for America. I find this issue very interesting, complex, and large because of the
First we will look at closely the statistics for outsourcing. According to Lori G. Kletzer statistics, 7.1 million jobs have been displaced since 1979. This is an
Employees will have to face the option of their job being outsourced, and managers will need to have training for their employees to make sure everyone is aware of each other difference and similarities. Globalization leads to competition however by standing behind one’s work, having innovative workers and the dismissal of outsourcing jobs can give the US an edge over international companies. Globalization also means greater access to untapped markets and customers.
Modernism can be seen as a reaction to the new society and environment that was formed by industrialization, which arose during the period between World War I and World War II. The modernist movement arose out of this new way of viewing the world and the self. Among the characteristics of the modernist movement were alienation and themes that were rooted in real life and real-life experiences. American poet Carl Sandburg was able to demonstrate how the individual viewed his redefined relationship with his environment and society in "Prayers of Steel" and "Chicago." In these poems, Sandburg strives to explore how the narrator attempts to reconcile his identity of self through the use of industrialist settings and images.
Outsourcing refers to hiring an outside, independent firm to perform a business function that internal employees might otherwise perform. Many organizations outsource jobs to specialized service companies, which frequently operate abroad. The outsourcing trend stands to continue; the latest wave of outsourcing impacts the information technology field. IT outsourcing includes data center operations, desktop and help desk support, software development, e-commerce outsourcing, software applications services, network operations and disaster recovery.2
Outsourcing is when a company purchases products or services from an outside supplier rather than performing the same work within its own facilities, in order to cut costs. In other words, outsourcing is an organization's contractual relationship with a specialized outside service provider for work traditionally done internally by that organization. The decision to outsource is a major strategic one for most companies because it involves weighing the potential cost saving against the consequences of a loss in control over the product or service. Some common examples of outsourcing include manufacturing of components, computer programming services, tax compliance and other accounting functions, as well as payroll and other
Marijuana comes from the Indian hemp plant. The “drug” is found mostly in the flowersof the plant, but it can also be found in the seeds, leaves, and stems. “The chemical that causes intoxication or the “high” in users is called THC (short for tetrahydrocannabinol).” (drugfreeworld.org) This chemical is responsible for the mind-altering effects that classifies marijuana as a drug. “In January 2014, marijuana was noted by the National Institute on DrugAbuse as being the most widely used illicit drug in the U.S.” (drugs.com) Marijuana becominglegal in the United States has been an argument for a long time now. Eight states, as well as Washington D.C., have legalized recreational marijuana. Twenty-seven states have legalized medicinal marijuana. People who use marijuana for recreational purposes usually smoke the plant like a cigarette hoping to achieve a euphoric state. Marijuana can also be mixed with foodor brewed as tea. “Medical marijuana is described as using the cannabis plant or its extracts to treat a disease or symptom.” (drugrehab.com) Although legalizing marijuana could possibly leadto more injuries, crimes, and addictions, the Federal Government of the United States should legalize it medically and recreationally since it can treat diseases, ensure public safety, and increase the country’s economy.By legalizing marijuana, people throughout the United States would be capable of using the drug as they pleased. There would be some restrictions with the legalization