• Home

How has the trend in outsourcing manufacturing and service operations to foreign countries helped average Americans? How has it harmed them?

Whats the State of Homeland Job Security?
Over the past several decades, more and more U.S. manufacturers began outsourcing production to such low-wage countries as Mexico and China. The number of U.S. manufacturing jobs dwindled, and the United States became more of a service economy. People who were directly affected were understandably unhappy about this turn of events, but most people in this country didnt feel threatened. At least, not until service jobs also started going to countries that, like India, have large populations of well-educated, English-speaking professionals. Today, more technology-oriented jobs, including those in programming and Internet communications, are being outsourced to countries with lower wage rates. And tech workers arent alone: the jobs of accountants, analysts, bankers, medical technicians, paralegals, insurance adjusters, and even customer-service representatives have become candidates for overseas outsourcing.
Many U.S. workers are concerned about job security (though the likelihood of a particular individuals losing a job to an overseas worker is still fairly low). The issues are more complex than merely deciding where U.S. employers should be mailing paychecks, and politicians, economists, business executives, and the general public differ about the causes and consequences of foreign outsourcing. Some people think its a threat to American quality of life, while others actually think that its a good thing.
Spend some time researching trends in outsourcing. Formulate some opinions, and then answer the following questions:
1. About what percentage of U.S. jobs have left the country in the last five years? What percentage will probably leave in the next five years?
2. What kinds of jobs are being outsourced, and where are they going? What kinds of jobs cant be outsourced?
3. How does global outsourcing help U.S. businesses? How does it hinder them?
4. How has the trend in outsourcing manufacturing and service operations to foreign countries helped average Americans? How has it harmed them?
5. Does overseas outsourcing help or hurt the U.S. economy? In what ways?
The jobs which do not need physical presence of person at the place where service is being rendered is a good candidate for outsourcing. Also the adavancement in technology, internet, communicationa nd computing has meant that certain jobs can be done efficiently irrepective of the develpment center location. This is primary reason why below few categories of jobs are being outsourced: Call Centers : It is very easy to setup a call center or customer care center outside any country. A lot of banks, hotels and electronic appliances makers have setup their call centeres in other countries like India and Philippines. These countries have become popular choice because of their good English speaking population lower cost. Manufacturing : Given the difference in wages between high cost countries like US and low cost countries like China and Mexicon, a lot of manufacturing jobs are being moved to these low cost countries. These jobs do not need lot of knowledge transfer and manual in nature and thus can be easily moved. Nursing or Analysis of Medical records : Looking at an X-Ray or a medical test report and analysisng the results is something which can be easily done at another location and given advancement of technology it is very easy and secure to transfer such reports and analysis results from one place to another even if far way has enabled Hospitals to move such work or other countries