Prof.: J. F. Manning
Week 10 Assignment: Case Study
These days we hear a lot about offshoring. But offshoring has become a hot topic that it was even discussed in the recent presidential debate. There are so many questions come to us when we talk about outsourcing. Sending jobs to countries who don’t ask for much is easier than paying Americans who ask for what will get them through the day. Workers in countries such as china and India are hard workers. Many people do not realize that outsourced jobs leave many Americans unemployed. Another problem is that we have more than Americans relying on us. Outsourcing affects everyone. That’s why many young Americans are going to other fields that are the less likely to be offshored. Information Technology jobs overseas also run a security and privacy risk. Risks such as these cause a negative impact on outsourcing.
Offshoring is a type of outsourcing in which company’s business process is relocated to a foreign country. Companies usually relocate their operations such as manufacturing, accounting, technical, administrative supportive or customer service to a country where they can have services at much lower pay than in the home country. The companies in United States have their operations primarily in China, India, and some Latin countries. Offshoring has important role in triggering unemployment in United States of America. Big and reputed companies are responsible for offshoring and damaging the America economy.
These days we hear a lot about offshoring. I remember when first time I heard about it. About 12 years ago when I had some technical problem with my computer; I called the toll free number for my computer company Dell and I had this computer technician talking to me and he told me that he is talking from India. I really didn’t have any idea that time that how can I be talking to a person in another country when I just dialed an 800 number in U.S. Later on I heard that Dell Company has its customer service center located in India. But now this has become a very big issue that it was even discussed in the current presidential debate. There are so many questions come to our minds when we talk about offshoring or outsourcing. Why do companies outsource jobs? How does outsourcing impact our economy? How does information technology effect outsourcing? These are important things that we need to know. There are many companies that outsource jobs for their benefit. But how exactly does outsourcing help major companies? Well, it is very simple if those companies keep the jobs that they send across the seas they would make less money. But the question is how? Here is an example, Picture you own five lemonade stands and you have two people working on each stand. Every day in total your profits are fifty dollars. The ten people that work for you receive two dollars each day which leaves you with thirty dollars. Suppose you had the chance to move your stands to a poor neighborhood. In that neighborhood the people there are willing to work extra-long and hard for fifty cents a day. Then what is stopping you from making forty-five dollars every day for the same labor and better results? It is very simple if you think about it. Sending jobs to countries who ask for less than ten dollars a day is much easier ten paying ten dollars an hour to Americans. There are more advantages than lower labor costs. Advantages like skilled workers, more efficiency and productivity, and time zone difference. These are also many major reasons companies choose to outsource. In countries such as India many workers are skilled in computer technology so IT companies send many jobs there. In china there are many hardworking laborers who are willing to work for a low cost. For IT companies it is much easier to give jobs to workers who already are skilled in the field then have to train new workers. In...