Negatives Of Outsourcing

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Some say outsourcing is not right and needs to come to an end, but others disagree. In the long run outsourcing helps the American economy and gives people in less developed countries, also known as LDCs more job opportunities. Outsourcing affects the world around us, and it affects different countries and peoples differently. Outsourcing began between the 1950’s and 1960’s because businesses always wanted to know how to exploit their competitive advantage. The IT companies use outsourcing the most and there is a big tech company in Bangalore, India. This caused more job opportunities and helped improve the Indian economy. The people are now exposed to outsourcing because of the technology they are using. Outsourcing has both its advantages …show more content…
The number of job losses is increasing as outsourcing becomes popular. For example, “Some of the regions pegged for the steepest job losses are also among the most innovative as some low-skilled jobs move away, there’s scope for other jobs.” Therefore because businesses are leaving the area to be located overseas people become unemployed and as outsourcing becomes increasingly popular as more people are becoming unemployed in the MDCs. Also Pearlstein believes that in the long run outsourcing will not be the answer and there will be many people without jobs. He states, “Outsourcing can lead to long term structural unemployment in the U.S.” Moreover a lot of Americans will be out of jobs because all of the businesses will be located overseas. So outsourcing is costing people their job and is increasing job competition in the …show more content…
They work the same hours, sometimes maybe more with less pay and they do not get paid overtime. Research proved that outsourced workers get paid 15% less than the lowest paid workers on the union. Therefore they do the same work but are getting paid the amount that they do not deserve, they deserve more and it is unfair. Also businesses pay their workers who are just starting lower than what they deserve and they do the same job as the others and people say that is not right and they do not really explain things so the workers do not fully understand what they are getting into. Moreover they are being paid less because they do not know any better or they just need to work to provide for themselves and family. To conclude outsourced workers are paid unfairly and they are being used and it is not right.
Outsourcing is not a perfect idea for businesses but then again nothing is perfect. Outsourcing is creating jobs in LDCs but is increasing the number of unemployed people in MDCs. The government is trying to fix the problems with outsourcing by trying to create more jobs in MDCs as businesses move away. Outsourcing creates more opportunities for lesser developed countries and helps allows them to become innovative and can maybe in the future prevent brain drain because of all the things they will be exposed to due to

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