Impacts of Outsourcing

Paper Summary:

This paper discusses what motivates Western companies to outsource and includes the effects it has on the American job market. The paper also makes the rather bold claim that, while outsourcing has denied jobs to experienced workers in the United States, much evidence proves the practice indirectly produces more jobs at home. The paper contends that the willingness of overseas workers to accept significantly lower wages challenges local companies to consider the extent of their obligation to employees.

From the Paper:

"In a significant report by Gartner, Inc., the leading provider of research and analysis on the global Information Technology industry, one out of every ten jobs in American software industry by the end of 2004 will completely move to low-cost emerging markets like India, China and Russia since United States companies have moved to cut costs. In recent years companies have acknowledged off shoring as a viable, long-term, cost-effective means to staying competitive in the global market. In the article, "More tech jobs going overseas. Trend is hurting U.S. programmers," the consulting firm Cap Gemini Ernst & Young reports, "an average computer programmer in India costs $20 per hour in wages and benefits, while an American with a comparable degree and experience costs $65 per hour." In an article by Amit Asaravala, titled, "Biz Panel Touts 'Offshoring,'" the Forrester Research Group, an independent technology research company that provides advice about technology's impact on business, reports that by 2015, "$136 billion in wages will shift to overseas workers" who are willing to accept far lower salaries than U.S. workers. The willingness of overseas workers to accept significantly lower wages challenges companies to consider what extent their obligation is to employees."

More papers on Impacts of Outsourcing:

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• Persuasive Essay # 64423 : "Negative Impact of Outsourcing"
• Argumentative Essay # 149242 : "The Effects of Outsourcing on the U.S. Economy"

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