Is Outsourcing Really Decreasing Americans’ Jobs?

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? and…/why-apple-doesnt-make-the-iphone-in-america

9 thoughts on “Is Outsourcing Really Decreasing Americans’ Jobs?

  1. Outsourcing is not good for the American economy. By sending these positions overseas, jobs are lost. I do see the benefit of cheaper labor and more efficient business operations. Time has shown that this type of producing is not going anywhere. It is too beneficial for the corporations involved for them to ever give it up.

  2. I agree with this post. With the outsourcing that many American companies are considering, it will definitely hurt America in the long run. Our economy is based off of the progress of these jobs and how these companies perform, so if more companies leave America or more companies sell work overseas, then our unemployment will be up as well. Also, other industries have worked with these companies, so if these companies are leaving America for cheap labor, then these other industries could hurt as well. As we can clearly see, this is not the best option, because even though a company has cut its cost by cutting its America ties, America will be the one hanging by a thread; a thread that might break sooner than we think.

  3. I disagree with outsourcing because it will in the long run only hurt our economy and affect Americans all over. The unemployment rate is already bad enough. People with college degrees are not able to get jobs and with outsourcing getting more popular this situation will only get worse. Although, it may be more cost efficient for companies like Apple to outsource, it hurts Americans. I am sure Apple can find equally qualified engineers in America, but the problem is the labor would cost more. I am not saying we need to be completely ethnocentric here, but we should not hurt America’s economy by outsourcing. It is enough that we buy millions of products from other countries such as China already, if we decrease labor in America by outsourcing it will only hurt our economy.

  4. I do not completely disagree with outsourcing. Yes, it may take away from American jobs, but it does keep prices lower. If all of the jobs that were outsourced were brought back to America, more jobs would be created, but prices would rise as well because employee wages would be higher.

  5. I agree that outsourcing is making Americans lose their jobs. I have a friend that has a company that makes websites for businesses. All of his workers are from overseas. He pays them very little compared to what it would cost him here. I also read a book called the World is Flat and it really opened my eyes to the good and bad for outsourcing. I do see the positive side for the businesses, they can keep the prices lower for the consumer because they are paying little for wages and manufacturing. The downside is that it is costing Americans their jobs. There will always be outsourcing because for businesses keeping there cost down is the main priority.

  6. I think the outsourcing has already affected our economy greatly by reducing manufacturing jobs, which has decreased revenue for government in form of tax. In reply of above comment, manufacturing in the US would have increased the price, but at the same time people would be making money and government would have been collecting tax. And they can use this tax revenue to control inflation and increase purchasing power to keep up with increased price.

  7. I do understand from a company’s perspective of wanting to outsource since it’s cheap labor and it is also very profitable for this companies to do so. But from an economical standpoint it is a bad idea for the country, because if all major companies starts outsourcing it creates higher unemployment and because of this consumers are not able to purchase any of the products. Hence this makes it really difficult for the money to flow around smoothly as we are seeing it happen today. From a consumer stand point I think outsourcing is a bad idea as it not just makes it difficult for people to find jobs in their field, but it makes difficult for a person to spend money as well.

  8. Posting about about outsourcing in a positive light is what our society needs because due to the negative media about outsourcing more and more companies are avoiding the option to avoid upsetting the public. On my commute to class today I saw a sign in someones yard that read “STOP OUTSOURCING” in response to an issue at their local school district. Crucial benefits to outsourcing are:
    Focus on unique core competences
    Exploit the intellect of an other organization
    Better predict future costs
    Acquire leading-edge technology
    Reduce costs
    Improve performance accountability

    These advantages can give a company strong competitive advantage.

  9. Outsourcing production can have some advantages for a new start-up product as mentioned above. Also, it is always a good idea to have more than one supplier to ensure you can meet your product demands. However, multiple suppliers can create problems with maintaining consistency of quality. Major disadvantages of outsourcing are the risk of exposing confidential data, labor rights, health and safety environment, and management problems.

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