The Myths of Outsourcing Jobs Overseas

find lower costs for their goods and services, which in turn means lower prices for consumers and more investments and innovations by corporations. There are four big myths of outsourcing, and none of them stands the test of facts.
             Myth number one about outsourcing states outsourcing destroys American jobs. Undoubtedly, some outsourcing moves work offshore. Call centers, Engineering, Information Technologies (IT) and software development can be done anywhere in the world. Communication is the only requirement, and telephones and internet provide this crucial link. So is the only implication replacing high-paid American jobs with low-wage jobs offshore? This is not so. If it were this simple, all work would be done outside the United States. Researchers in Virginia have recently studied the impacts of offshore outsourcing on U.S. jobs in the computer software and services field. The study concluded that worldwide sourcing of computer software and services actually increases U.S. jobs (Corbett S4). It also improves real wages and, by pushing the economy, brings other benefits. The study found that worldwide sourcing increased employment in the U.S. by 90,000 jobs in 2003 and increased real U.S. wages by 0.13% (Corbett S4). Global sourcing helps companies become more productive and competitive. E-Loan, for example, gives its customers a choice of whether to get their loan paperwork processed in America in 12 days or in India in 10 days. An incredible 87% of customers in the U.S. chose the faster loan processing by sending their paperwork to India (Stossel 1). The clothing we wear is another example. A whopping ninety-six percent of our apparel is produced outside the U.S. and imported. I approve; we have many more choices for less money. Bill Portelli, who runs the California-based company Collabnet, says outsourcing has helped him keep his company alive in the United States. He has hired programmers in India who are paid less than hal...

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The Myths of Outsourcing Jobs Overseas. (2000, January 01). In MegaEssays.com. Retrieved 08:33, October 18, 2026, from https://www.megaessays.com/viewpaper/26758.html