Over the last few years, the United States once hit rock bottom and suffered major economic difficulties forcing people to lose their homes and jobs. However very few companies did not feel the economic crisis due to outsourcing. The term outsourcing basically means a organizaton, business, and/or services no longer perform their business “in house”. The service, organization, and/or business is now located outside of those places. Companies usually transition to outsourcing to save money and/or to lessen the burden on having to pay United States taxes. What do I mean by saying companies wanting to save money by outsourcing? Paying wages here in the United States is very expensive compared to paying individuals overseas. For example, the state of Illinois minimum wage is currently $8.25, maybe even more for someone working in a manufacturer, however the same work that someone else is doing is payed about $5.00 for the same work and maybe even more labor than the United States worker. This differences can save major companies money and for this very reason is why most of them are starting to outsouce. One major company that I am sure everyone is familiar with is Apple. As you all know Apple have been around for many years in which making products such as iphones, computers, laptops, ipods, and so much more. Controversy have been spoken lately on how their workers that are producing these proudcts are working in poor conditions and are getting paid very little money. However recent articles have stated that ‘Cheap labor is not the only reason why they decide to outsouce. An article that was done by Casey Chan, mentioned that China(where Apple’s factory is located) has higher qualified engineers than the United States, futhermore China’s workers and factories are better than the United States. Taking those reasons into consideration as to why Apple choose to outsource, can you really blame this company for wanting better qualified engineers and/or wanting to better their company so they can continue to produce some of the best technology that almost every American has once purchased? Another problem that arise from oursourcing are the individauls that are layed-off due to the fact that factory jobs were starting to transition to outsourcing. The problem increasing because majority of factory jobs require very minimum training to get the job, but once a person is hired for the job, proper training takes place for that person to get the job down. On the other hand, once those same individals who were layed off trying to find a job can be extreme diffcult, which then those same individuals can not purchase as much goods and service anymore, which then are forcing these companies to outsource to save money and or break even for their services or products. Chapter 2 demeostrates reaons why “outsouring” or global is good. One reason was the it can increase strategies and assessment in a given country. Learning from other countries can greatly help others gain knowlege to increase their businesses and/or services.
Outsourcing will always remain. How do you feel about outsourcing? Does it really dismiss jobs or increase opportunities?
www.wisegeek.com/how-does-outsourcing-affect-the-us-economy.htm and gizmodo.com/…/why-apple-doesnt-make-the-iphone-in-america