I. It’s 2 a.m and you are online preparing your outline for a speech class when suddenly your computer crashes. You check all the wires and connections, but the computer does not start. Frustrated and worried, you call Dell’s support line and you are greeted with “Dell computers, this is Sean, how can I help you?” Even though he speaks and sounds like he is located somewhere in the states, chances are Sean’s real name is something like, Mitesh, and he is helping you from across the globe in India. Sean is just one of many Indians that loves his job, the job that use to belong to an American. II So is job outsourcing helping or hurting Americans?
III. It is Helping not hurting Americans.
IV. Many companies are sending labor overseas, leaving Americans worried about their job status. V. To show you that outsourcing is not as bad as it seems, we will take a look at what outsourcing is and how it has affected jobs and the economy, two of the many areas benefitting from outsourcing.
First, we will take a look at what job outsourcing is.
A. General information
1. Moving technical jobs overseas
a. Skilled jobs
b. Mainly computer and telephone jobs
c. Move to New Delhi, Bombay, Manila, Shanghai, and Budapest
d. According to a CBS news story presented on Aug 1, 2004 “the U.S. gov does not keep track of how many American jobs have gone overseas, but there are estimates that in just the last 3 yrs, as many as 400,000 jobs have gone to places like China, Russia and India.
2. Examples – according to CBS news report cited earlier
a. Amazon .com – emails
b. AOL/Dell – technical calls
c. Even government is outsourcing – 18 states have Indian operators answering welfare benefits calls
3. Cost of labor
a. Cut budget
b. Save $
c. Up to half the cost
4. Future of job outsourcing
b. In the Feb 3, 2003 issue of BusinessWeek, an outsourcing expert estimated “40% of America’s top 1000 companies will at least have an overseas project under way w/in 2 yrs.”
B. Description – CBS News story that aired Aug 1, 2004
a. Called agents
b. Fake American names, Sean, Julia, Terrance
a. Learn American English
b. Knowledgeable; college degrees
a. Most of their work done at nights
b. Answer calls 24/7
Now that we have a clear understanding of what job outsourcing is, we will take a look at how it is affecting American jobs.
A.American job loss
1. In the Feb 19, 2004 issue of the Economist a report by Forrester Research predicted “3.3m American service- industry jobs will have gone overseas by 2015.”
a. Number of jobs is not a lot
b. Not high paying jobs of information technology
c. Same jobs that could become automated; bank tellers, system operators
a. Give people more opportunities
b. Go back to school, higher education
c. Or as BusinessWeek stated in an article titled “The New Global Job Shift” from its Feb 3, 2003 issue, “U.S. labor force and capital can be redeployed to higher value industries and cutting edge R & D.”
B. Not all jobs will be lost, jobs will be created
1. According to the previously cited issue of BW, “For security and practical reasons, corporations are likely to keep crucial R&D and the bulk of back-office operations close to home.
a. Keep jobs that require face to face contact
b. Medical and legal fields
c. Communication/contact is important
a. New jobs allow people to go where they are most productive
b. Americans will have higher paying jobs
Outsourcing not only affects jobs, but it also affects the economy.
1. According to ETalkingHead, a political web magazine a Feb 12, 2004 article claimed outsourcing “is the...