Outsourcing Cause and Effectiveness, Essay Example

The shifting of jobs to countries where workers are paid lower wages has led to a lot of debate in the USA. This arise as many business try to cut their operation costs so that they can increase their profits (Grijzen, (2010). The advancement of technology has made outsourcing to increase because it is now possible, for example, a telephone operator to answer calls for a USA company and work as easily from Australia as from New York. Outsourcing is also seen as a way of undertaking international trade. All this was created by the economic recession that the country has been experiencing in the past little years. This debate has increased because the outsourcing has led to increased unemployment in the USA as many worker.  Outsourcing has also led to dislocations for many American workers. With united state still recovering from the global economic recession, many people argue that this is not the time to send jobs overseas (Adams, 2009). Many jobs have become vulnerable to offshore outsourcing, which has increased, dramatically in the past years. This saves the parent company a lot of its cost. This has lead to feeling of insecurity by some of the workforce in the United States of America. This is because they feel they feel exposed to competition from workers who are well educated from abroad who are willing to work with little wages than that paid to the Americans (Buffington, 2007).

This policy has failed because it has increased joblessness in the USA. Many jobs have been directed to overseas countries. It has become difficult for those workers who lose jobs to find new ones because of the low level of job creation. Outsourcing acts as a form of economic protectionism, which led to, slow recovery of the economy (Hira, 2005).

References

Adams, R.C. (2009). Viewpoints: Readings Worth Thinking and Writing About, 7^th edition. Belmont: Cengage Learning.

Buffington, J. (2007). An easy out: corporate America’s addiction to outsourcing, 1^st edition. New York: Greenwood Publishing Group.

Grijzen, J. (2010). Outsourcing Planning, 1^st edition. Amsterdam: Amsterdam University Press.

Hira, R. (2005). Outsourcing America: what’s behind our national crisis and how we can  reclaim American job, 1^st edition. New York: AMACOM Div American Mgmt Assn.