What types of regulation should the government enforce to regulate outsourcing and why? The government was created by our founding fathers to help run America. Laws and regulation are established to protect and serve the American people. Outsourcing is becoming more prevalent in our society and as a result, yes government should intervene to regulate it. Businesses have the options of receiving government funds and in return should be regulated by the government. Job security and pricing is both a stake when it comes to outsourcing. It is important that the government intervenes when necessary, especially when it comes to protecting the American people. The types of regulation in effect have mostly to deal with tax cuts on a federal level. Many businesses who outsource often receive government funding to promote outsourcing. While on a state level many businesses can only outsource a proportion of their business if they want to receive state funding. State and Federal legislators are often at battle when it comes to outsourcing. The conflict between what is good for the country as a whole is often conflicted with what is good for the state. This paper will outline the pros and cons of outsourcing and how it affects the United States economy in regards to jobs and cost. Briefly, I will discuss the history and time line of outsourcing, while explaining the progress of outsourcing. This progress will include comparing ancient outsourcing to the outsourcing in the 21st century. I will also go into great detail about the differences between state and federal legislation in regards to outsourcing. Lastly, I will conclude with more options to regulation in regards to outsourcing. These options will include regulations that deal with labor laws how America can increase jobs. Introduction
According to Webster’s Dictionary, outsourcing is the contracting out of a business process, which an organization may have previously performed internally or has a new need for, to an independent organization from which the process is purchased back as a service. The method of outsourcing became popular in the 21st century. Before the information age, businesses carried out daily functions at one location. With outsourcing, companies can hire other companies for services or products used to run the business. Companies can also create a separate division to their company in another company. The debate whether outsourcing positively or negatively effects the economy is ongoing. Some believe that outsourcing sends jobs overseas, while many Americans are left jobless. Others believe, while outsourcing does send jobs overseas, it gives Americans the opportunity to hold jobs at a higher level. With the growth of outsourcing, state governments have intervened and created laws to regulate outsourcing. Federal and State government will need to continue to make efforts in regulating outsourcing to sustain or grow the economy. History of Outsourcing
Outsourcing is not a new method for doing business. In ancient history, people realized that there is a need for everyone to lend a helping hand. It was understood that everyone had something unique to offer and it was needed for everyone to prosper. Many thriving businesses used outsourcing as a way to outsource those functions that they had no competency. Functions such as administrative and customer service support were contracted to other companies, but in the same country. This method worked well for companies because it allowed the business to focus solely on the main goal without having to worry so much about administrative tasks. Outsourcing in the 21st Century
Outsourcing in the 21st Century brings upon a new term, “Offshoring”. Offshore is the relocation by a company of a business process from one country to another, such as an operational process or supporting process. Offshoring is used widely throughout the United States. Large companies have taken customer service...
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