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Impact of Outsourcing on America Craig Lowrie COM/150 Effective Essay Writing December 10, 2011 Sheryl Brasswell

2 Outsourcing is not a new process and has been used by corporations for decades. Outsourcing can be defined as the strategic use of outside resources to perform activities traditionally handled by internal staff and resources (Hanfield, 2006). According to Hanfield (2006), it was not formally identified as a business strategy until 1989. Outsourcing was originally used when a corporation did not have internal capabilities to complete tasks. Then, in the 1990s, as organizations began to focus more on cost-saving measures, they started to outsource those functions necessary to run a company but not related specifically to the core business (Hansfield, 2006). In the past, employers used outsourcing to focus on reducing costs within their organization. Outsourcing has evolved resulting in corporations shifting their focus. Today, employers use outsourcing for strategic purposes. According to Hansfield (2006), the focus today is less on ownership and more on developing strategic partnerships to bring about enhanced results. Outsourcing has many supporters who believe it benefits the American economy. For corporations, outsourcing provides many benefits to their organization. Although outsourcing is no longer solely used for cost reductions, it continues to be used as a cost savings benefits. Supporters believe that outsourcing reduces operating expenses for corporations such as overhead costs. In addition to cost savings, supporters claim that outsourcing doesnt just lead to jobs lost, but jobs gained as well. In the article, Offshore Outsourcing Has Many Economic Benefits, data shows that Ohio has imported 242,000 jobs, Indiana 163,000, and Michigan 244,000. As companies expand their business, ooutsourcing lets corporations focus on functions essential to focus on growth. Rapid growth can be draining on essential resources. Ooutsourcing activities

3 will allow refocusing on those business activities that are important without sacrificing quality or service in the back-office (Bucki). Additionally, outsourcing supporters proclaim that consumers also reap the benefits of moving jobs overseas. For example, companies have outsourced call centers to other countries. Supporters believe that this improves customer service by providing by providing assistance to the consumer twenty-four hours a day seven days a week. In the same way, supporters claims that producing goods overseas results in lower priced goods for United States consumer to purchase. Consumer can buy a DVD player for less than $100. It is one reason why retail costs of products has halved in many sectors over the last 20 years, allowing for inflation (Dixon, 2006). Outsourcing opponents argue that relocating American jobs to other countries harms our job market and impacts people. It is no secret that the United States job market has suffered. Manufacturing occupations were among the first jobs to be sent overseas. Unfortunately, manufacturing is not the only industry to be affected by outsourcing. Consequently, white color jobs have also become a casualty of this practice. The United States lost 2.5 million manufacturing jobs since the Bush presidency beginning in 2001, U.S. corporations now are racing to outsource whitecollar jobsincluding work in computer sciences, engineering, entertainment, financial and medical servicesto countries where workers earn far less (Birnbaum, 2005). Furthermore, Shipping Jobs Ovcerseas: How Real is the Problem, reports that Goldman Sachs estimates 400,000600,000 professional services and information sector jobs moved overseas in the past few years, accounting for about half of the total net job loss in the sector over the period.

4 Today, the United States unemployment rate is at 8.6%. Birnbaum reported in her (2005) article, American Jobs: Going, Going, that by 2010, about 30 percent of working Americans werent making even poverty wages. Outsourcing continues to impact the American people in 2011. Americans are losing good paying jobs which are forcing them to accept lower paying jobs to support their families. Labor Department list of the 10 occupations likely to show the largest job growth this decade is dominated by jobs that typically pay poorlyfood preparation, customer service, office clerking, security and food service (Birnbaum 2005). Another concern is the information being sent overseas along with our jobs. As United States corporations relocated jobs overseas, our personal information is going too. Private information, such as medical records or payroll information is potentially compromised. There have been instances of thefts of things like credit cards, social security numbers and patented material, and these must give a company pause (http://www.wisegeek.com/what-are-some-outsourcintrisks.htm). Outsourcing is not going away. American jobs will continue to be lost to other countries. Today high paying jobs are being outsourced to India including doctors, mathematicians, accountants, financial analysts engineers, biologists, architects, physicists, chemists and programmers (Cameron, 2010). This trend will continue. Forrester Research Inc. predicts U.S. employers will move 3.4 million white -collar jobs and $136 billion in wages overseas by 2015 (http://www.aflcio.org/issues/jobseconomy/jobs/outsourcing_problems.cfm). Our economy is consumer driven. With better paying jobs disappearing rapidly, Americans

5 will be forced to accept lesser paying jobs. Wages lost from higher paying jobs will force families to spend less further hindering our economys recovery. Corporations will also face challenges in the future as outsourcing continues to evolve. Outsourcing has already created a labor shortage overseas. Some companies are now thinking of moving operations to places like Pakistan (50% lower costs and over 200,000 IT graduates looking for work), Bangladesh or Vietnam (Nixon, 2010). Outsourcing jobs create a demand for higher wages in emerging countries For example, China is now seeing 100% salary inflation at top end and India is not far behind - acute shortage of experienced business leadership labor shortage for skilled workers in emerging countries (Nixon 2010).

6 References Handfield, PhD, Robert. (2006). A Brief History of Outsourcing. Retrieved November 27, 2011, from http://scm.ncsu.edu/scm-articles/article/a-brief-history-of-outsourcing

Offshore Outsourcing Has Many Economic Benefits. Retrieved November 27, 2011, from http://ic.galegroup.com.ezproxy.apollolibrary.com/ic/ovic/ViewpointsDetailsPage/ ViewpointsDetailsWindow?displayGroupName=Viewpoints& disableHighlighting=true&prodId=OVIC&action=e&windowstate=normal&catId=& documentId=GALE%7CEJ3010653208&mode=view

Bucki, James. Top 7 Outsourcing Advantages. Retrieved December 7, 2011, from http://operationstech.about.com/od/officestaffingandmanagem/a/OutSrcAdvantg. htm

Shipping Jobs Overseas: How Real Is the Problem? Retrieved November 27, 2011, from http://www.aflcio.org/issues/jobseconomy/jobs/outsourcing_problems.cfm Birnbaum, Jane (2005). American Jobs: Going, Going Retrieved December 7, 2011, from http://www.aflcio.org/aboutus/thisistheaflcio/publications/magazine/0903_amjobs. cfm What Are Some Outsourcing Risks. Retrieved December 9, 2011, from http://www.wisegeek.com/what-are-some-outsourcing-risks.htm

Dixon, Patrick (2010). The Future of Outsourcing-Impact on Jobs. Retrieved December 7, 2011, from http://www.globalchange.com/outsourcing.htm Cameron, Alexia (April 12, 2010). Outsourcing Americas Future. Retrieved December 7, 2011, from http://economyincrisis.org/content/outsourcing-americas-future

7 Written Assignment: Body Paragraphs Content and Development All key elements of the assignment are covered. The paper is complete enough for constructive feedback (at least 900 words). The paper consists of body paragraphs for the expository essay. The paper supports one of the topics listed in Appendix A or has been approved by the instructor. The content is accurate and persuasive. Due Date: Saturday, Day 6 Points Possible Points Earned Comments You had at least 900 words. You submitted the body paragraphs for your expository essay. The paper supports an approved topic.

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3.5

The tone is appropriate for the intended audience.

2.5

Major points are stated clearly; are supported by specific details, examples, or analysis; and are organized logically. Appropriate transitions are included within and between paragraphs. References: In-text citations are formatted according to APA standards.

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25

2.5

10

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Your content is accurate and mostly supported by your sources. Your content is generally persuasive. Your tone is primarily appropriate for the audience. Remember to use third person consistently throughout the paper. You stated your major points clearly and had good support in most places. Your points are organized logically. You did a mostly good job of using transitions to make the paragraphs flow easily. You did a good job with your in-text citations.

Mechanics

Points Possible 24

Points Earned 23 Usage

Comments

Rules of grammar, usage and punctuation are followed. Spelling is correct.

Good job 6 6

Attached Certificate of Originality Total Points Late Penalty (5% per day cannot exceed five days) 100 93 On time

Final Score 93 Overall Comments: Craig, you did a good job on the body paragraphs. You provided accurate information persuasively and used an appropriate tone in most places. You included enough detail from credible sources to support most of your major points. You did a good job of using information from your sources, along with your own interpretation and analysis of that information. Please review the Developing Your Body Paragraphs thread in the Main forum for additional strategies you can use. Your organization is good, and you usually had smooth transitions within paragraphs and between paragraphs. You do need a little more explanation in a few places, such as why outsourcing reduces overhead. You did a mostly good job with grammar and spelling. I submitted your paper through the Plagiarism Checker at the Center for Writing Excellence; your similarity index score is fine. You did a good job with your intext citations. Overall, this is a very solid set of body paragraphs. Please make revisions as noted before you submit your final essay in Week 9.