This essay Outsourcing Our Nation has a total of 1895 words and 10 pages.
Outsourcing Our Nation
11 March 2004
As the 2004 Presidential election draws near, questions pertaining to the mission to Mars, elusive weapons of mass destruction, and fallacies concerning military service swarm around the candidates. However, as many of us know, a candidate’s campaign lives or dies depending on his plan for the economy. This year a new economic challenge has arose. All other issues have been smothered by the cries of nearly two million factory, mill, and information technology workers. Because of outsourcing, the question tipping everyone’s tongue is “Where did my job go?”
Also referred to as offshoring, outsourcing is the practice of subcontracting manufacturing work to outside and especially foreign or non-union companies. Based on the economic practice of comparative advantage–country X producing a good or service at a lower opportunity cost than country Y, United States corporations find cheap labor in countries such as India and the Philippines (Buchanan). With belief in President George W. Bush’s repeated promise of job creation fading fast, unemployed workers across the nation have agreed: The United States government should take an active role in protecting their jobs from outsourcing.
With the creation of technological advances, including new ways to conduct business and trade, a problem has been created. The United States is currently consuming more than it is producing in goods and services by a margin of a million dollars a minute (Nash 15). For
decades, the world has been a large source of goods and energy for the United States; however, international labor has come to be relied upon as well (Dobbs 40). Through outsourcing, companies have been able to obtain large amounts of inexpensive labor at the cost of laying off two million Americans. Displacement from outsourcing has affected factory workers most severely. In the 60\'s and 70\'s, “blue collar workers could earn white-collar incomes. Organized into powerful unions, industrial workers secured regular wage increases and improved benefit packages” (Lindstrom). Now in 2004, industrial work has become increasingly outsourced. Beginning in the 1980\'s, Mexican maquiladoras (mills) were popular because of their outsourcing potential. Because a good produced by low wage workers is less expensive than a good produced by unionized workers, these imported goods prevent domestic producers from staying competitive (Nash 15). Even further crippling domestic industries, since the United States lifted quotas on Chinese exports, textile industries have been forced to lay off 37,000 workers (Forney 42).
At first only affecting blue collar workers across the nation, the real spark of the heated political issue is the extreme loss of white-collar jobs as well (Will). The 1990\'s was a decade of herding workers to the field of technology. It was “easy street” for those who could quickly learn the programmers’ lingo or how to manage corporate computer networks. But for programmers like Vince Kosmac of Orlando, Florida, there was no salvation in technology. Vince is among thousands of programmers and information technology (IT) workers who have lost their jobs to outsourcing (Thottam 31).
Though IT services outsourced account for less than 1/20th of one percent of gross domestic production, this is sure to be a growing trend. Since 2000, United States businesses have spread information technology jobs to countries like India, China, Ireland, Israel, and the Phillippines (Gongloff). When calling Dell for quick help on a malfunctioning PC, the customer service representative answering all of your questions is most likely an outsourced IT worker in Bangalore or New Delhi (Thottam 36).
1930\'s legislation increased domestic working conditions, wages, and workers rights for Americans. However, in the 1990\'s, the roar for better conditions for outsourced workers in developing countries challenged companies like Disney, Levi Strauss, Liz Clairborne, Mattel, Nike, and Reebok (Vogel). Now in 2004, working conditions have improved, but there is little increase in wages as well. The average salary for a software programmer in the United States is $66,100. The average salary for an Indian software programmer is $10,000 (Thottam 39). For an American project manager, yearly income is between $13,600-$17,100. For a Filipino project manager, yearly income is roughly $700-1,150 (Gongloff). The differences in salaries are beyond substantial, they are enormous. But businesses barely blink an eye as their profits continue to grow.
Many companies are claiming that the mass amount of outsourced labor is due
General Motors - Financial Ratio AnalysisGeneral Motors - Financial Ratio Analysis I. General Motors History Highlights In its early years the automobile industry consisted of hundreds of firms, each producing a few models. William Durant, who bought and reorganized a failing Buick Motors in 1904, determined that if several automobile makers would unite, it would increase the protection for the group. He formed the General Motors Company in Flint, Michigan, in 1908. Durant had bought 17 companies (including Oldsmobile, Cadillac, and Po
Information Technology OutsourcingInformation Technology Outsourcing Information Technology outsourcing is the contracting out of part or all of an organization\'s IT activities. New trends have included operations, programming, and technology planning. The main reason for information technology outsourcing is to gain immediate economic gains for the company, usually through savings. Financial motivations aren\'t first on businesses minds though; other strategic objectives are. Outsourcing can make it easier to downsize. Becau
Increasing Shareholder WealthIncreasing Shareholder Wealth INTRODUCTION The goal of all corporations is to increase shareholder wealth. Shareholder wealth is increased is by increasing the corporation\'s profit. In a corporation involved in manufacturing, reducing the cost of the factors of production is essential for growth. One of the major components of production costs is labor. When in comes to labor costs, the corporation and the worker usually have very different goals. The corporation wants to pay the worker as litt
General Motors Financial AnalysisGeneral Motors Financial Analysis General Motors - Financial Ratio Analysis I. General Motors History Highlights In its early years the automobile industry consisted of hundreds of firms, each producing a few models. William Durant, who bought and reorganized a failing Buick Motors in 1904, determined that if several automobile makers would unite, it would increase the protection for the group. He formed the General Motors Company in Flint, Michigan, in 1908. Durant had bought 17 companies (incl
In Search of Low Wage LaborIn Search of Low Wage Labor INTRODUCTION The goal of all corporations is to increase shareholder wealth. Shareholder wealth is increased is by increasing the corporation’s profit. In a corporation involved in manufacturing, reducing the cost of the factors of production is essential for growth. One of the major components of production costs is labor. When in comes to labor costs, the corporation and the worker usually have very different goals. The corporation wants to pay the worker as little
Information Technology OutsourcingInformation Technology Outsourcing Information Technology Outsourcing Information Technology outsourcing is the contracting out of part or all of an organization\'s IT activities. New trends have included operations, programming, and technology planning. The main reason for information technology outsourcing is to gain immediate economic gains for the company, usually through savings. Financial motivations aren\'t first on businesses minds though; other strategic objectives are. Outsourcing ca
OutsourcingOutsourcing Contents. 1 Abstract 2 Introduction 3 Fundamentals 4 The Main Strategy 5 Sucessful Outsourcing 6 Conclusion Outsourcing and how it can help IT Managers enhance their projects. Abstract With computer systems / projects and there implementations getting more complex with every day that passes , the tendering of IT responsibilities to external parties is becoming more and more attractive to the IT Managers of large organisations. The common name for this type of operation is Outsourcin
Computers And FinanceComputers And Finance Computers have made financial bookkeeping much easier, and people no longer have to spend hours tracking investments or pay someone else to do their taxes. Moreover, the advancement in technology has allowed governments to cut back on the number of big companies and employees hired to process tax returns, resulting in the saving of millions of dollars. Although these advancements are extraordinary, they are not without their shortcomings. The IRS has had increased trouble i
Production PlanningProduction Planning Introduction The intention of this project is to demonstrate the function of production planning in a non - artificial environment. Through this simulation we are able to forecast, with a degree of certainty the monthly requirements for end products, subassemblies, parts and raw materials. We are supplied with information that we are to base our decisions on. The manufacturer depicted in this simulation was actually a General Electric facility that produced black and white te
Myths In Human CivilizationMyths In Human Civilization Throughout the history of human civilization, myths have been an integral part of human society. Myths have no cultural boundaries as they can be found in all cultural societies. The word myth can be referred to the classical Greek and Roman mythology or a contemporary myth. Regardless of the type of myth, they are stories used to give meaning to a phenomenon or symbolic manner to the natural cycles that surround humankind. Myths are used to explain and understand our
Info Resource MGMTInfo Resource MGMT 1) A system is a combination of technologies, people, processes and organizational mechanisms. An example of a system is the production of a car. The system would combine the technologies used to create the machines that put the car together, with the people that run the machines, the assembly line process for building the car, and the salesman that sells the car, which creates the original mechanism for the cars to be built. 2) Hierarchies require a vertical chain of command
Privitization Of AirportsPrivitization Of Airports Privatization of Airports By: Maiea E-mail: [email protected] For 51 years Bergstrom Air Force Base was home to fighter pilots, bombers, troop carriers and reconnaissance jets. It was the first port of call for President Lyndon B. Johnson on his trips home to LBJ Country aboard Air Force One, it was where Chuck Yeager, the first pilot to break the sound barrier, once brought a disabled jet to rest in an emergency landing. In September 1993, in the path of military cutba
Nike And What It Does To Third World CountrysNike And What It Does To Third World Countrys The Manufacturing Practices of the Footwear Industry: Nike vs. the Competition The current manufacturing practices of the sneaker industry, in particular companies such as Nike, Reebok, Adidas, Converse, and New Balance, takes place throughout the globe. With the industry experiencing severe competition, and the product requiring intensive labour, firms are facing extreme pressure to increase their profit margins through their sourcing practices. The
Abstract EXAMPLESAbstract EXAMPLES This paper describes an empirical life cycle model and uses it to predict the behavioral responses to a change in the Social Security Disability Insurance (SSDI) program known internally within the Social Security Administration as the “$1 for $2 benefit offset”. This policy has not been enacted yet, but has been actively supported by disability advocates as a way to provide greater incentives for SSDI benefi-ciaries who have fully or partially recovered from their disabilities
Please, Lend Us LessPlease, Lend Us Less Foreigners have snapped up more than a trillion dollars’ worth of U.S. government debt, but if you ask why, you’ll discover more bad news than good Oct. 1 — Someone recently noticed that foreigners have invested heavily in U.S. Treasury securities—so much so that their money covers the cost of the war in Iraq and much of the exploding U.S. budget deficit. In the first half of 2003, foreign purchases of U.S. Treasury notes and bonds totaled $265 billion. The cumulative foreig
Primus Securities Website Simulation Primus Securities Website Simulation EBUS 500.1 e-Business Principles and Practices July 21, 2004 Abstract Primus Securities is a full service brokerage firm serving approximately 7,000 clients. In order to increase the number of clients being served Primus by further developing the website that was created nearly a year ago. By developing and maintaining a website, Primus Securities will need to evaluate customer needs, technology needed, markets strategies, and operational costs. Another impo
Can you Overdose on Outsourcing?Can you Overdose on Outsourcing? Maintaining \'Health\' for Enterprise-wide Value Chains Sometimes touted as a miracle drug for business transformation and competitive advantage, outsourcing can be a bitter pill if not taken as prescribed. Unfortunately, some executives mistakenly believe, if one flavor of outsourcing pill is good, then a fistful must be even better for company growth and efficiency. But caution is advised against self-medicating habits. Just as drug interaction problems can res
Competitive Advantage in Tourism and Hospitality OCompetitive Advantage in Tourism and Hospitality Organizations Introduction Hospitality and tourism are closely related fields. These fields have grown together and have assumed the form of well-established industries in many economies today. The magnitude of these industries have grown so much that they contribute a significant portion to the economic revenues of some counties such as the US, European countries like Switzerland, France, Belgium and Asian countries like Malaysia, Indonesia and M
Financial Resources Financial Resources Financial resources concern the ability of the business to finance its chosen strategy. For example, a strategy that requires significant investment in new products, distribution channels, production capacity and working capital will place great strain on the business finances. Such a strategy needs to be very carefully managed from a finance point-of-view. An audit of financial resources would include assessment of the following factors: Existing finance funds - Cash balanc
Outsourcing Our NationOutsourcing Our Nation English 101 11 March 2004 As the 2004 Presidential election draws near, questions pertaining to the mission to Mars, elusive weapons of mass destruction, and fallacies concerning military service swarm around the candidates. However, as many of us know, a candidate’s campaign lives or dies depending on his plan for the economy. This year a new economic challenge has arose. All other issues have been smothered by the cries of nearly two million factory, mill, and informatio
Carnivalesque Resistance to Global Spectacle: A CrCarnivalesque Resistance to Global Spectacle: A Critical Postmodern Theory of Public Administration April 12, 2001; Revised April 30, 2001 Pre-publication draft of article published in: Administrative Theory Praxis, Vol 23 (3): 431-458. Abstract I propose a critical postmodern application of Debord’s Spectacle and the carnivalesque of Bakhtin to the theatrics I see happening in city streets, on college campuses, and Internet resisting the new globalized economy. In the past decade pubic administ
Y2K (Year 2000 Problem)Y2K (Year 2000 Problem) The Year 2000 Problem Argument for the statement The Year 2000 bug will have such extensive repercussions that families and individuals should begin planning now for the imminent chaos. The Ticking Bomb Introduction A serious problem called the Millennium Bug, and also known as the Year 2000 Problem and Y2K, is bringing a new century celebration into a daunting nightmare. In the 1860s and 1970s, when computer systems were first built, the computer hardware, especi
Human Resource ManagersHuman Resource Managers Describe the challenges that Human Resource Managers will face in the next five years. In December of 1996, the Society for Human Resource Management sponsored a symposium in Florida. At this meeting, all the senior human resource officers were challenged to discuss what they felt were the challenges facing human resource managers in the decade ahead. David Ulrich, professor of business administration at the University of Michigan’s School of Business facilitated the disc
SUMMER TRAINING PROJECT REPORT SUMMER TRAINING PROJECT REPORT ON EMPLOYEE RETENTION STRATEGIES ADOPTED BY BPO's SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (B.B.A.) GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI [pic] Training Supervisor: Submitted By: Mrs. Smriti Dua Mani Kant Sharma Enrollment No: 08014201712 BBA VIth Semester SESSION 2014-2015 Guru Gobind Singh Indraprastha University Sector - 16C, Dwarka New Delhi - 110075 STUDENT'S DECLARATION I hereby declare that the Summer
Chapter 22: Economic issues affecting internationa Chapter 22: Economic issues affecting international trade 1. 'The world's income is distributed very unevenly.' Explain this statement. 2. Is 'income per person' measured according to how much each worker earns? Explain your answer. 3. What is the difference between a developed nation and a developing nation? 4. What are imports and exports? Explain your answer using examples. 5. Why do countries with high average incomes tend to import more goods than those with lower average incomes? 6. How m