Offshore Outsourcing and the United States

             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 the 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 this in mind, it is not possible to send these types of tasks overseas. More complex parts of production including marketing, research and development are not really possible to outsource. "Innovation and deep business expertise will continue to be delivered predominantly onshore" (Drezner). Even if the most extensive forecasts predicting the number of jobs that will be sent overseas come true, the impact on the economy will be negligible. "According to the Bureau of Labor Statistics Occupation Outlook Handbook, the number of IT-related jobs are expected to grow to 43% by 2010. The case of IBM reinforces this lesson: although critics highlight the offshore outsourcing of 3000 IT, they fail to mention the company's plans to add 4,500 positions to its U.S. payroll. Large softwar...

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Offshore Outsourcing and the United States. (1969, December 31). In MegaEssays.com. Retrieved 18:59, April 25, 2024, from https://www.megaessays.com/viewpaper/9189.html