Critics of offshore outsourcing claim that it has started to take a toll on the United State’s manufacturing jobs by sending them to foreign countries such as India. Jobs once considered safe such as call centers and high-level software programming are being ousted. Based on studies, this claim is not true and in fact other sources are causing the effect on the U.S. job market. The process has been in practice throughout 1990’s, but people had little concern because the job market was thriving at that time. One factor that is making outsourcing seem like it is the problem is because the economy is sluggish at the moment, which greatly affects the amount of job growth. Also the creation of new jobs lags behind the destruction of old ones. “Other factors include the job market trailing the general economy: weakness in manufacturing and stellar productivity performance across all major sectors” (Reaser).
“Close to 90% of jobs will be unaffected by outsourcing and require geographic proximity” (Drezner). Some of these types of jobs include retailing, restaurants, marketing, personal care, and services that have to be produced and consumed locally. With t
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There is also the possibility of a language barrier, in some countries many different dialects are spoken. economy will need more, not fewer, workers. “Activities that will migrate offshore are predominantly those that can be viewed as requiring low skill since process and repeatability are key underpinnings of the work” (Drezner). “A country’s cultural dimensions play a crucial role in the outsourcing arrangement” (Ramarapu). “Lack of standards hinder the development of information systems and data transport across borders” (Ramarapu). There must strategic plan when deciding to offshore a sector of the company. The strategy also shouldn’t be looked at as a potential solution to an already failing process. Foreign countries may use different standards for their equipment or different equipment all together. The Gartner research firm has estimated that by the end of this year, 1 out of every 10 IT jobs will be outsourced overseas” (Drezner). companies and freeing resources for activities that have more value. Another major risk is the dealing with the countries political situation, which can change or be corrupt. At current productivity levels, the country will need 5%, or 15. workers will make it possible for the United States to create new jobs faster then offshoring eliminates them” (Agrawal).
Approximate Word count =
1950
Approximate Pages =
8 (250 words per page double spaced)
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