Introduction
Outsourcing U.S. workers means that full-time workers are obtained from less developed countries where the wages are lower, and labor laws are tighter. It is facilitated by the availability of the internet that makes it easy to assemble and manage remote teams of workers.
The increasing economic pressure in the globe facilitated by the developing world as a competitor has forced all firms to rely on contracts. Many small and midsized businesses need to develop technology in the new global market to be effective in outsourcing.
Findings
Detriments of outsourcing to the U.S. workers
Having people from foreign countries, work for U.S firms affects the economy of the U.S. negatively by leaving a large number of Americans jobless. The availability of cheap labor in other countries is permanent, and the American workers could lose jobs forever since outsourcing does not leave enough jobs for the Americans.
Outsourcing reduces spending and tax revenues since Americans in poverty find it difficult to get a job although they are willing to do the jobs. Outsourcing relies much on service jobs, which do not disburse as much as manufacturing jobs thus reducing the national wealth.
Benefits of outsourcing to the U.S. workers
Outsourcing maintains the country’s economic status: America exports products to the rest of the world more than any other nation by taking advantage of the emerging markets of India and China. The country takes advantage of the global world we currently live in to become rich. It is crucial to selling products to new world markets due to the product brand.
If the country fails to involve itself in outsourcing, it may end up losing both the foreign and domestic market. Irrespective of the country’s decision to stop outsourcing, other first world nations such as EU members and Japan will continue networking.
Outsourcing reduces American companies’ efficiency and competitiveness due to a shortage of supply of skilled workers. The cheap labor got from outsourced workers reduces the costs of production, which consequently reduces the costs of US consumers. Outsourcing in the U.S. benefits HP and IBM.
It also helps improve and maintain the global economic status of the country. In case it stops to outsource, other countries will. The countries economy relies on outsourcing and the more it gets involved globally, the more successful it becomes. Hence, the U.S. should not discourage the practice of outsourcing.
Outsourcing creates jobs: The cost savings and use of offshore resources reduce inflation and interest rates while increasing productivity. It helps to get high-quality services at a cost-effective price. It causes an increase in business profits, productivity, level of quality, and business value and performance.
It helps American firms obtain skilled and qualified workers that help them increase the concentration of the employees and the organization on the core business by outsourcing all the non- core functions. Outsourcing helps firms increase delivery of services and products to customers hence improving the relationship of the business and the customers.
Outsourcing makes use of time zones advantages reducing time wastage. It helps businesses to achieve overall efficiency by assigning some functions to the partner. By availing a competitive edge to firms, it helps countries increase their economic growths, jobs, and wages.
Outsourcing benefits workers from health insurance: Outsourcing involves a variety of medical insurance plans, retirement/pre-tax plans, flexible spending accounts, employee assistance programs, credit unions, and financial services.
This helps to create a flexible work environment by improving employee satisfaction and reducing attrition and unscheduled absences. Due to the availability of these benefits, outsourced employees are motivated to provide quality products and services to the firm.
Discussion
Outsourcing remunerates the U.S. shareholders by reducing the costs of production and American consumers by reducing the costs of their needs, wants, and affects American workers by leaving them jobless. It positively affects the economies of developing countries and increases trade for U.S. products.
It gives the ability to the less developed countries to pay back their debts to the U.S. It is difficult to eliminate outsourcing given the current trend in globalization. The rate of employment is decreasing although the number of unemployed is not decreasing. Skilled workers find themselves seeking self-employment.
Conclusion
Corporations employ outsourcing largely used as a means of cutting costs by replacing highly paid workers in one country with lower- paid workers who perform equivalent jobs from other countries. The availability of low-wage, educated, and skilled workers in countries such as India, China, and Russia provides a key motivation for U.S. corporations to outsource jobs.
It leads to the replacement of large numbers of blue-collar manufacturing jobs, white collar and IT technology jobs with outsourced workers hence increased unemployment. Outsourcing leads to loss of worker control since it is difficult to manage outside service providers. Also, it is a threat to security and confidentiality, quality problems, and bad publicity of company and consumer information.
Recommendation
U.S. workers’ unions should oppose the outsourcing of workers in the US. Shifting of production and jobs to foreign location causes problems to many workers due to the conflicting needs of companies, national economies, and individuals. U.S. corporations should try their best to balance outsourcing workers to prevent future economic problems to workers in their own country and ensure good public relations.