Argumentative Essay On Outsourcing

Improved Essays
The outsourcing of jobs from the United States to other countries, has been on the rise for over the last two decades. Outsourcing is a company providing a service that is cost effective. External companies, that provide a service, may not always be outside the country, in most cases, they are in other countries due to the low cost of labor. Outsourcing is defined as, the act of one company contracting with another company to provide services that are normally done by in-house employees. Companies now outsource jobs such as call center services, customer service, technical support, distribution and payroll services to other companies. Entreprenur.com stated that outsourcing is “the practice of having certain job functions were outside a company instead of having an in-house department or employee handle them; functions can be outsourced to either a company or an individual. It's the practice of sending certain job functions outside a company instead of handling them in house. More and more companies, large and small, are turning to outsourcing as a way to grow while restraining payroll and overhead costs.” Outsourcing is having a tremendous effect on the United State economy. Outsourcing has added to the rise in our nation's …show more content…
The first is that outsourcing has lead to the drainage of jobs that belong to the American middle class; the second arguments argue that those jobs outsourced leads to poorer quality in goods and services produced. According to The Economics of Outsourcing, the continual practice of outsourcing leads to a loss of American jobs and a declining standard of living. According to the Bureau of Economic Analysis, already about 10 million jobs have been sent overseas since 2001. This trend has helped to fuel the high unemployment rates seen in the last few years, which leads to a decreased standard of living in the United

Related Documents

  • Decent Essays

    Nt1330 Unit 1 Study Guide

    • 573 Words
    • 3 Pages

    1. Software as a Service (SaaS) – Model of software deployment where an application is hosted as a service provided across the internet. 2. Outsourcing is the transfer of information systems development, operation, or maintenance to an outside firm that provides these services for a fee on a temporary or long-term basis. 3.…

    • 573 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    ‘The death of distance: Outsourcing, white collar exodus’ film involves many companies moving their call centers and contracts to foreign countries, this is called outsourcing. They particularly look at areas in southern Asia, for example countries like India, Malaysia, etc. This is a lot cheaper for big companies because it allows them to cut their wage salary lower because the quality of living is lower in LEDC’S (less economically developed countries). United States of America is a MEDC (more economically developed country), this means if a lot of companies are outsourcing to south Asian countries this can have a negative impact on globalization of the United States. This is due to outsourcing, and this is because of major companies setting up their call centers in other countries than USA.…

    • 954 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    The Truth behind the Business Strategy of Outsourcing The United States is one of the richest countries in the world, admired by other countries because of its strategic level of productivity and consumerism. To maintained the United States high demand, the country must adopt and develop new innovations in order to compete with other markets. Because the goal of most businesses is to create profit, the United States is one of the main countries to take their business to cheaper markets with the objective to increase profits by reducing labor cost and operating expenses. Outsourcing means “the usage of outside vendors to produce goods or fulfill services and functions that were previously handled in-house or in-country” (Boone & Kurtz, 2015).…

    • 1324 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Imagine going to work just like any other day and finding out that you will soon be without a job. This is the reality that many Americans are waking up to every day. In the article, Penalize Companies that Export Jobs, author Michael Riordan explores this issue. Mr. Riordan is an MIT educated physicist and a former employee of the corporation that is highlighted in the article. The article outlines the plans of Carrier Corporation, to move its production facility from Indianapolis Indiana to Monterrey Mexico.…

    • 762 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Countries like India and China are ahead of the United States in education and could be more qualified for the jobs Americans are trying to obtain with the degrees earned in the United States. Also, outsourcing to foreign countries can save business thousands, if not millions of dollars. Jobs can be outsourced and the American employee will be left unemployed. Alan Blinder says, “ You can’t hammer a nail over the Internet.” (Page 396)…

    • 1153 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Although there are many positive reasons as to why companies have decided to start outsourcing certain jobs there are many negative results to this practice. A company that decides to outsource certain services runs a significant danger of exposing confidential information to other third-party companies; sensitive information such as payroll, internal services and intellectual property rights become accessible to foreign labor workers. This access to sensitive information runs a great danger since the employee overseas does not have to abide by the same laws that are applied back in the…

    • 1175 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    In order to keep profits high, companies are outsourcing jobs to other countries such as Japan and China. The reason being is large companies are always…

    • 1064 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Therefore, we have to borrow money to cover the difference (Levy and Scott 22). Outsourcing of American jobs is inevitable. As a country, America needs to figure out a way to keep the balance between exporting and importing of goods. In a sense, outsourcing manufacturing jobs forces young American teens to go to college to pursue an education and a degree or go work at the local restaurant or fast food joint.…

    • 762 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    Outsourcing America, in my opinion, has been bad, as someone who was a displaced worker at one time due to the company that I worked for closing down and moving to Mexico. The benefits of outsourcing have been enormous. For workers in poverty ridden countries, it has meant jobs and fast rising standards of living. For some industries, lower labor costs have brought higher profits. Modern consumers are enjoying access to more goods at lower prices.…

    • 381 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    America is experiencing a large gap in income inequality between the working class and the wealthy class. According to Derek Thompson, the new wealthy class, which is the top 1% of America population, holds nearly 40% of America’s wealth; while the new working and social class holds significantly less than 7%. There are opinions thinking that this gap is caused by the rich, who only think about their profits and don’t even care that America is having job a shortage or people are working low wage for several years. On the other hand, some blame the working and social class for their “immobility”, saying that they are not trying hard enough to climb out of the bottom while depending too much on the government subsidizes. Both opinions are true…

    • 1104 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Outsourcing Trends

    • 1566 Words
    • 7 Pages

    Outsourcing as related to business processes refers to an organization contracting part of its work out to an external organization. An example of outsourcing is an organization that hires a law firm to review its contracts instead of maintaining an in-house lawyer. A risk associated with outsourcing is a conflict of interest between parties. A benefit associated with outsourcing is that an organization is able to take advantage of specialized skills and cost savings. Offshoring as related to business processes refers to outsourcing working to an organization from another country to accomplish non-manufacturing activities in order to leverage cost advantages.…

    • 1566 Words
    • 7 Pages
    Improved Essays
  • Great Essays

    The Backsourcing Process

    • 1824 Words
    • 7 Pages

    Introduction The purpose of this article is to analyze and compare the backsourcing decisions of two private and separate entities. This document will look into the decision making process, as well as, address how each organization managed the entire backsourcing procedure. This paper will also focus on the critical factors which would determine success or failure in this procedure. Additionally, this article will examine the similarities and differences between the two organizations.…

    • 1824 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    Essay On Offshoring

    • 792 Words
    • 4 Pages

    Blinder makes valid points on the rise of offshoring and how our economy may suffer from it. What he fails to mention is the fact that with America having such a dense population, the public can have a major effect on whether offshoring occurs, and if so to what degree it occurs. Self-protectionism is a key issue in American politics, such as the “Buy American Act”, and it is not to be taken lightly. Many jobs have already been lost to other countries through outsourcing. The self-awareness Americans have that offshoring is becoming an epidemic that will further threaten the American way of life, may be reason enough for companies to reconsider offshoring.…

    • 792 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    It also eliminates some conflicts with the workers and decreasing some wasteful activities such as payroll processing. Outsourcing can makes management team to devote its attention to refining…

    • 840 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Ikea Outsourcing Essay

    • 850 Words
    • 4 Pages

    Outsourcing, a process of hiring another individual or company, either domestically or internationally, to handle the business activities for the firm. At this era, it is no longer an option as much as it is a necessity and has become a common business practice that allows small and medium size businesses to gain extra services and skills that are usually hard for them to develop due to shortage of manpower or financial restrictions, or maybe both. It allows the firms to be more focus on their core competencies, rather than tying up considerable company funds in something that can easily and cost effectively be done somewhere else and, more importantly, it will surely help the firm to cut the costs and improve their performances efficiently…

    • 850 Words
    • 4 Pages
    Improved Essays