Offshore Outsourcing

Paper Summary:

In this article, the writer introduces, discusses and analyzes the topic of the American business practice of outsourcing jobs offshore. Specifically, the writer discusses the cause and effect of this practice on the American economy, labor force, customer service, etc. The writer points out that outsourcing a variety of American jobs overseas has become common practice and that the cause of this practice is clear. The writer then explains that American wages are higher than offshore wages, and outsourcing, therefore, saves American companies money. The writer notes that the effects, however, are beginning to be noticed in a wide area, from customer service to job loss. The writer argues that outsourcing overseas may save companies money, but in the end, it places them in a negative light and indicates their lack of interest in protecting and enhancing America and the American economy.

From the Paper:

"Outsourcing has really taken off in the last few years. Thousands of American businesses routinely outsource customer service and other jobs to outsourcers in India, China, Russia, and other foreign companies. CBS News reports, "The U.S. government does not keep track of how many American jobs have gone overseas, but there are estimates that in just the last three years, as many as 400,000 jobs have gone to places like China, Russia, and India". In fact, outsourcing is on the rise, and it looks as if that trend will continue. Another expert notes, "The number of service sector jobs moving overseas is expected to reach 588,000 by 2005, up from 100,000 in 2000". This shift of jobs to overseas locations can create several negative affects to the country in a number of areas."

Sample of Sources Used:

• Anderson, Stuart. "Outsourcing Saves Money: Sending Jobs Overseas Can Increase the Productivity, Profitability and Competitiveness of U.S. Companies." State Legislatures June 2005: 30.
• Challenger, John A. "How to Smooth Job Transition to Offset Overseas Outsourcing." USA Today (Society for the Advancement of Education) 132.2708 (2004): 22.
• Cocheo, Steve. "Globalthink or Job Shrink: Offshore Outsourcing Brings Some Banks Key Benefits. If Only It Didn't Carry All the Cachet of Leprosy. A Look at What's Actually Happening." ABA Banking Journal 96.5 (2004): 40+.
• --. "Regulators Keep a Risk-Based Eye on Offshore Outsourcing." ABA Banking Journal 96.5 (2004): 64+.
• Cypher, James M., and James L. Dietz. The Process of Economic Development. New York: Routledge, 2004.

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