Jobs Running Away

Jobs Running Away

Outsourcing is something that we are use in the United States because our labor is too expensive. In business, we find the most effective, efficient, and the cheapest way to go with our operating cost. Outsourcing is one way to cut labor cost in production and services and provide the same results.  There are many advantages of outsourcing not just cutting cost but also maintaining a competitive advantage than competitors with the same product. A company like Nike who outsources to China, Indonesia, and Vietnam are gaining an advantage for the price but many disadvantages as well. Outsourcing is an advantage for immediate but in the long run this decreases jobs domestically and creates many risks. Ricks contain ‘inappropriate planning and analysis’ because of corrupt or local government rules, managers that might not be capable, and employees only working because that’s the only earning they will receive. Outsourcing not only impacts domestic jobs but overseas because if the company were to decide to leave that would demolish their economy in some counties.

Indiana is planning to outsource their State Lottery operations, it is currently postponed but like many other operations, they want to pass it to larger vendors. They want to determine if this will be beneficial to them to gain more money or suppress their gain. They want to use outsourcing for their advantage in improving operating and service, and for outside technology and expertise which they believe will bring more people to play the lottery and help the state. Even though many other states have outsourced their lottery services with Indiana will become 95%.

Operations has much to do with maintaining and process where for the overall product or services can provide a better, shorter, and cheaper outcome for the business to grow. Outsourcing is one big operation in which product are shipped overseas for their cheap labor or technology and brought back to be sold domestically. Strategically they have to plan if this will help with the future growth because it is a large investment or they will have to spend even more backsourcing.

I believe a lot of strategic planning that goes into deciding whether a company should outsource. Even though I believe keeping is domestic, will have the local jobs and grow our economy. Even though many companies find it as an advantage to ship the labor I think ethically, paying the workers domestically will help with the current or future recession and avoid the risks and disadvantages that goes into outsourcing. Do you think ethically outsourcing is a good plan for any product or services?

3 thoughts on “Jobs Running Away

  1. Outsourcing definitely keeps costs low and connects us to other countries, but what if all of our jobs that were outsourced were back in the US? The unemployment rate would drop in a second, and yes, costs would increase, but people would actually have jobs again.
    I think each view of outsourcing has both great pros and cons. I had no idea outsourcing had gotten this crazy though. To say that States are outsourcing their State Lottery operations sounds like an oxymoron.

  2. Outsourcing is important because it allows an organizations to gain a competitive advantage by delegating business activities to others more equipped for doing the job. It enables operation managers to focus more on core competencies while not sacrificing quality and service on back-office functions. Nonetheless, it reduces the cash outflow and optimizes resource allocation thus saving money for future investments in the long run. Outsourcing is the most cost efficient way of operating and sustaining your business practice through the benefits of low labor, better quality, and improved innovation.

  3. Outsourcing is only important to greedy corporations whose only concern is to make a buck at the cost of American workers’ livelihoods. Corporations want outsourcing because it enables them to increase their profits, at the cost of cutting wages to American workers. They hide behind the excuse that American wages are too high, when in actuality, the average American wage is not high when compared to the high cost of goods and services sold in the United States.

    I personally find outsourcing to be unethical. Not only does outsourcing rob the American people of job opportunities, but also, the American people are taken advantage of in both the prices they are paying for an outsourced product and the cheap quality of the outsourced product they are receiving. In addition, outsourcing is unethical because these corporations support foreign corporations and their mistreatment of their workers.

    Outsourcing is strengthening other countries, and the United States has become dependent on products and services from their foreign traders. So much for the American Dream…

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