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Pros And Cons Of Outsourcing In The United States

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In the United States, outsourcing has become to be considered a bad word. There have been many officials who have vowed to stop it and businesses that feel the need to downplay their involvement with it. The idea of shipping any jobs overseas, especially when unemployment is high, is very objectionable to many Americans. Outsourcing has many pros and cons, but is it as big of a problem as people make it out to be?
“Outsourcing is when a company contracts with an outside provider for services or other business processes, rather than employing staff to do these services in-house” (about.com). Companies use it as a way of filling roles within their company that would normally be too inefficient or expensive to create themselves. Common outsourced services are: human resource, sales and marketing, customer call center, IT, and finance and accounting. …show more content…

Many companies choose to outsource because it is often cheaper in terms of salaries and benefits. The average minimum wage in China is $1.18 compared to America’s $7.25. With a reduction of labor costs and cheaper materials, companies are able to turn those savings onto the consumer. With the ability to lower the cost of the goods and services the company is able to stay within the competitive market. With the cost of salaries greatly reduced organizations are also able to keep more cash on hand, freeing their resources for other purposes, such as “capital improvements”. Lower prices lead directly to higher standards of living and more jobs in a growing economy” (Kane, Schaefer, & Fraser, 2004, p.

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429 Words | 2 Pages

In Barbara Ehrenreich’s article, “Your Local News”, her ideas about outsourcing help the reader understand Fareed Zakaria’s thesis that we are living through a power shift called “The Rise of The Rest” by explaining that America is not declining but is helping everyone else rise above. These authors come together to further understanding of the shift of power that has occurred due to outsourcing, putting America in the backseat of progression, but not out of the race. Ehrenreich introduces his ideas by explaining that “in the eighties, US companies began outsourcing the manufacturing of everything from garments to steel…”, but by the nineties, “back office and call center jobs migrated to India” (609). This helps the readers understand Zakaria when he he tells his readers that “for the first time ever, we are witnessing genuinely global growth.”

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713 Words | 3 Pages

Focus on Core Areas: Another advantage for outsourcing your business it would free your energies and enable you to focus on building your business more, it allows you to invest in research and development and move on to providing higher value added services. What this means it’s that outsourcing allows you to improve your business and allows you to take bigger steps. Levelling and Keeping the Game Rolling: For small businesses that do not have enough money to support in-house services, unlike larger companies, outsourcing can be a saving grace and can help them act “big” by providing them access to technology similar big businesses and other perks on expertise larger organisations or businesses carry. For example your business is small and across your business there’s a bigger business by outsourcing your business you can get accessed to similar technology as them which will make them see your company is

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678 Words | 3 Pages

Outsourcing definitely has its cons, although it provides jobs for people, it also takes them away. Companies outsource their products because it is cheaper, faster and easier for them to be made in other countries and shipped across the world to consumers. For example, a brand of clothing is made in Canada, providing jobs to people here. The problem is that these clothes must be sold for high prices because of the wages and regulation laws in Canada.

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478 Words | 2 Pages

Businesses are trying to pay their employees less, while continuing to expect them to do the same amount of work. This is where outsourcing was established. Jobs are being outsourced to cheaper countries, where the workers are willing to do the work for a smaller salary than those in more established and industrialized nations. This means the company itself is making more profit, while the employee is not. For example, if a company is charging their clients a certain price and they start outsourcing their work to make it cheaper, the company is now acquiring a larger profit.

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2032 Words | 9 Pages

The definition of outsourcing is “(of a company or organization) to purchase (goods) or subcontract (services) from an outside supplier or source.” In laymen’s terms, it’s when companies hire foreign workers to do the jobs of U.S. workers, simply because a bigger profit can be made. Using Joel Best’s Social Problems Process Model, one can analyze the different aspects of social problems and apply these observations to Outsourcing. This model’s analysis may show that Outsourcing is a social problem that needs to be resolved in some way.

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Many companies from countries like China, India offers professional services outsourcing, which allows each organization or enterprise to maximize the benefits of this form of business. Because the maintenance of the company's own staff require large financial expenditures to pay into the pension fund of each employee, vacation benefits, and many others costs. In addition, staff management and supervision will also require to spend more time, which is not always accessible for the CEO of the

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733 Words | 3 Pages

A minimum wage increase from “$7.25 to $10.10 would result in a loss of 500,000 jobs”. ("The Effects of Minimum-Wage Increase on Employment and Family Income”) This claim is better because it shows how raising the minimum wage will decrease job growth instead of increasing it. But, the minimum wage should be increased because increasing will also increase economic activity and spur job growth, decrease poverty, and improvements in productivity and economic growth have outpaced increases in the minimum

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Outsourcing is a typical practice in the business world and the obtaining and supply administration. Numerous associations do this when they purchase something they were already made by them, in their offices. It is very sure that a considerable measure of organizations and associations that are inside the United States are as of now outsourcing. That isn't just with items and where they were created yet also with their faculty.

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767 Words | 4 Pages

“The main negative effect of outsourcing is it increases U.S unemployment. The 14 million outsourced jobs are almost double the 7.5 million unemployed Americans”(1A). For example, China has received thousands of U.S jobs because of the cheap labor costs and for the fact that they will not buy american goods unless they are manufactured

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874 Words | 4 Pages

Why should we allow for companies to be outsourced (to countries such as Mexico) and then allow them to bring their products back into this country free of charge. The United States has been losing companies and jobs to countries like Mexico and China for years and it is about time that it stopped. President Donald Trump is not trying to come across as though he does not care about other countries, it is just that Trump wants America to be the top priority. By doing so he is going to end free trade and not allow the U.S. to be take advantage of again. Companies such as Ford have already complied with Trump’s new proposal.

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1039 Words | 5 Pages

Outsourcing is a common practice today that is frowned upon by most working-class members of society. This replacing of jobs overseas reduces the amount of jobs that are available here in the states forcing people to take

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Companies are now free to assemble a workforce spread around the world, freed from the confines of location and logistics. Outsourcing has now enabled industries to actually pick and choose from a globally diversified talent pool, without being hindered by factors like distance. Companies like Walmart have become so effective in operating across the globe, they’ve now set a new benchmark for ‘supply chain

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294 Words | 2 Pages

Economics 2010: Introduction to Microeconomics October 22nd, 2015 Bonus Assignment: Relating a News Article to a Class Topic Jordan Loder 201213535 Minimum Wage and Living Wage: Equivalent or Not? The recent election and the raise of minimum wage in several provinces across has sparked a lot of discussion on the topic of minimum wage, a topic covered in our course in chapter 6. More specifically, the classic question of “is minimum wage a liveable wage?” has been addressed several times in news media. For example, this was addressed in a recent news article by the Globe & Mail in a piece called Minimum wage increases reignite livable income debate by Richard Blackwell and Tavia Grant.

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954 Words | 4 Pages

Textile manufacturing giants from USA and UK, numerous times, have their manufacturing units in developing nations like India and China. They get to make products at exceptionally low costs. Outsourcing is productive to corporate units monetarily. Researches demonstrate that nearly four million employments have been exchanged to nations like India, China, and Philippines. More occupations will be outsourced from developed economies to developing economies in the close

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1035 Words | 5 Pages

Sit-down restaurants’ ability to have short turnaround times from ordering to services raises the question “How are they able to serve everything on the menu so quickly?” Persons may have guessed that it was due to a highly competent and efficient workforce but the reality is that restaurants are now outsourcing semi completed meals in order to save time in the preparation of their meals. These pre-prepared meals can either mean that restaurant chefs have to add a few ingredients before serving or simply heat and serve. Although there are mixed views on this practise by restaurants, it is becoming more commonplace and it the near future this trend can be the new normal. Advertisements for the outsourcing companies advertise the concept of “Hours

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