Tomorrow morning, many American's will wake up to be told that their job has been outsourced and they are no longer employed. Some of those workers will have no warning. Some of the workers will lose their self-worth and pride. All of the workers will lose their ability to support themselves and/or their families. They will have to begin the search of finding a place for themselves within a different position or a different company all together. The company who is outsourcing their job will save money, paying the new worker less to do the same job, while many other potentially negative and not so obvious effects occur. The benefits of globalization and outsourcing in The United States do not outweigh the negative effects on US workers and companies.
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The cost of offshore workers is significantly less than the cost of US workers. An example of cost savings can be seen in a company who is well known for their outsourcing practices. United Technologies outsourced many of its jobs to India where they paid Indian workers over 20% less than they paid US workers to do the same job. (Overby, 2003) Although they were able to save a large cost margin by outsourcing, there are many not so evident costs that the company will incur by outsourcing. The negative effects outsourcing has on overall business translates into financial loss in ways of customer dissatisfaction, different business practices and its affects of all those …show more content…
When a company transitions from US workers to offshore workers, they change the sharing of information and data from an internal transaction within the walls of a company, to sharing and passing information and data across countries using the internet. Although there are efforts made to maintain cybersecurity, there is no amount of cybersecurity that will guarantee no loss of data and information from attackers and other threats. Security Auditor Evan Francen observed this first hand with Wells Fargo, stating, “"We audited a small bank that was compliant with computer security regulations, but we could have put them out of business in five minutes because of the physical risk.” With many of white-collar jobs involving sensitive information, this can become a much larger issue than the outsourcing company bargains for. Medical back office jobs are one of the many jobs being outsourced in this movement. Sensitive patient and medical information is exchanged between the company and the outsourced workers on a regular basis. The US has regulations put in place to maintain the security of this information, known as HIPPA regulations. When these regulations are broken, it burdens the company who committed the violation with hefty fines and penalties. In 2003, a subcontractor in Pakistan threatened to publicly release confidential patient information when she did not receive payment for services that
The cost of offshore workers is significantly less than the cost of US workers. An example of cost savings can be seen in a company who is well known for their outsourcing practices. United Technologies outsourced many of its jobs to India where they paid Indian workers over 20% less than they paid US workers to do the same job. (Overby, 2003) Although they were able to save a large cost margin by outsourcing, there are many not so evident costs that the company will incur by outsourcing. The negative effects outsourcing has on overall business translates into financial loss in ways of customer dissatisfaction, different business practices and its affects of all those …show more content…
When a company transitions from US workers to offshore workers, they change the sharing of information and data from an internal transaction within the walls of a company, to sharing and passing information and data across countries using the internet. Although there are efforts made to maintain cybersecurity, there is no amount of cybersecurity that will guarantee no loss of data and information from attackers and other threats. Security Auditor Evan Francen observed this first hand with Wells Fargo, stating, “"We audited a small bank that was compliant with computer security regulations, but we could have put them out of business in five minutes because of the physical risk.” With many of white-collar jobs involving sensitive information, this can become a much larger issue than the outsourcing company bargains for. Medical back office jobs are one of the many jobs being outsourced in this movement. Sensitive patient and medical information is exchanged between the company and the outsourced workers on a regular basis. The US has regulations put in place to maintain the security of this information, known as HIPPA regulations. When these regulations are broken, it burdens the company who committed the violation with hefty fines and penalties. In 2003, a subcontractor in Pakistan threatened to publicly release confidential patient information when she did not receive payment for services that