Outsourcing In Third World Countries

1745 Words 7 Pages
Often a heated topic among business professionals as well as hard workers fearful of losing their jobs, outsourcing is big issue portrayed in the media. Outsourcing is the act of having people in foreign countries perform work that could be or once was completed by the home country. Although people argue that the labor is cheaper, it leaves others with a sense of dread as they fear unemployment and the effects it has on the economy. To begin with, it is important to understand why companies turn to outsourcing certain departments. First, the leading justification for outsourcing is the money businesses save. Even though many people may believe that it is just the reduced salary causing the business to save money, there are other factors involved. …show more content…
Often in third world countries, working conditions are not the greatest considering their government doesn 't regulate workplaces like developed countries do. Often people face a lower and unlivable wage. Abuse and unsafe working conditions are also ramped among unmonitored conditions. Some places even condone child labor (Labor Exploitation and Outsourcing: The Good, the Bad and the Ugly, n.d.). To take India for example, with most of the population living off of $1.66 an hour, many of them face extreme poverty (Worstall, 2015). It may be the reason that we get our prices so low, but is it really fair to the workers? It is barely enough to get by in America, and even though prices are lower in India, it is barely enough to survive. With families unable to support themselves, child labor becomes a horrifyingly real concept. Therefore, it is not really all that shocking when there is a correlation between the places we outsource to and the countries with the highest child labor. India and China rank high on the child labor list and are top on America’s supplier list as well (McKenna, 2012). It is not only that they have to work, but the deplorable conditions they go through for both children and adults. For example, in an extreme case there is a carpet factory where works are forced to work long hours for little pay. Many works are also developing eye and back issues to do the condition and nature of the work (Goldberg, 2014). …show more content…
While outsourcings main impact is in the cities more than in the rural parts, it has increased the amount of female workers due to companies like BPO (Haque, 2007). With both men and women working within a household, the family is going to be more financially stable. Plus, with the extra money, families are going to be more likely to go out and spend more money. As long as developed nations are still relying on developing countries such as India and China for work, jobs will continue to increase and the economy will thrive.
Outsourcing has a good and bad side in the developed nation as well in the developing countries. Although each company has to make their own decision and take the leap on wheatear it is the right move or not, others will always argue the opposing view point. It can be a helpful investment to the company as well as help those struggling in developing nations. Even if some may be stuck on the negatives and job loss associated with outsourcing, it doesn’t hurt to take a look at all ends of the spectrum before making an informed

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