Offshore Outsourcing

In 1973, a monumental shift was prevailing where U.S. companies were sending low skilled jobs within the manufacturing industry to offshore countries to reduce labor cost while maximizing profits.   Outsourcing a variety of American jobs overseas has become common practice during the last decade or so.   American wages are higher than offshore wages, and it saves American companies money.   The effects of outsourcing began to be noticed in a wide area, from customer service to job loss.   Outsourcing overseas may save companies money, but in the end, it places them in a negative light and indicates their lack of interest in protecting and enhancing America and the American economy.   This paper will discuss the cause and effect of this practice on the American economy, labor force and customer service,

    Outsourcing has really taken off in the last few years.   Thousands of American businesses routinely outsource customer service and other jobs to outsourcers in India, China, Russia, and other foreign companies.   CBS News reports, "The U.S. government does not keep track of how many American jobs have gone overseas, but there are estimates that in just the last three years, as many as 400,000 jobs have gone to places like China, Russia, and India" (Editors).   In fact, outsourcing is on the rise, and it looks as if that trend will continue.   Another expert notes, "The number of service sector jobs moving overseas is expected to reach 588,000 by 2005, up from 100,000 in 2000" (Challenger 22).   This shift of jobs to overseas locations can create several negative affects to the country in a number of areas.

At least 400,000 Americans have lost their jobs due to outsourcing, and this demonstrates one of the largest negative effects of outsourcing on American business.   Often these employees find it difficult to find comparable jobs, and this affects the economy in a number of ways.   For example, call center employees are displaced when...