Negative Effects of Outsourcing Essay Example | Topics and Well Written Essays - 1500 words

Negative Effects of Outsourcing - Essay ExampleAs a result, there is a indicate concerning the benefits and costs involved in outsourcing (Wikipedia, 2007). This paper discusses some of the negetive impact of outsourcing jobs on US economy and society. Outsourcing jobs to new(prenominal) countries will negatively impact American Society by depleting the availability of jobs in the US, decreasing the direct of customer service we receive, and reducing our privacy. in that location are arguments for and against outsourcing of jobs in United States. Many of them suggest that outsourcing has had a negative impact on the American economy. However economists and government officials who are supporter of outsourcing of jobs to other countries striving the overall benefit and long-term advantages of this practice for the American economy. Unfortunately those who have disjointed their jobs due to the emergent outsourcing businesses to foreign competition often discover that the creation of higher paying jobs to replace ones that are lost has non occurred. As a result of this there are many who are undergoing mental trauma.There is a great deal of impact of outsourcing on the economy. It contributes to a deteriorating the economy as it contributes to the trade shortage and exports the American knowledge base to other countries. While outsourcing has helped to improve the lives of people in other countries, it should not be done at the cost of creating unemployment in America. Outsourcing of jobs at a lower wage whitethorn benefit the company, but it has serious impact on those who loose jobs and deteriorate their living standards. Taking a correct estimation of the costs of outsourcing would establish the fact that keeping jobs in the United States is more agonistic than otherwise. Outsourcing has resulted in increasing unemployment problem in America. While those who are in favor of outsourcing argue that as a result of outsourcing, high-value jobs will be crea ted to substituting jobs lost by outsourcing, the facts reveal quite incompatible situation in future. Projections made by the pectus of Labor Statistics in 2004 have clearly state that outsourcing can except increase unemployment. According to a CNN commentator Lou Dobbs, among the top-ten projected areas of job growth but three categories require a college degree. He also interprets that those who take new jobs will provide only 80 percent of their former pay rate. Some of the statistical data reveal the following facts. Unemployment among Americas engineers has acutely increased from 2.0% in 2001 to 4.2% in 2002 to more than 6.0% in the first quarter of 2003. The unemployment problem is even worsened for people belonging who have the basic degree in electrical, electronics, computer and software engineers. According to the Bureau of Labor Statistics at the U.S. Department of Labor, unemployment among electrical and electronics engineers reached 7.0% in the first quarter of 2 003. 6.5% of all computer computer hardware engineers and 7.5% of computer software engineers were also unemployed during the same period.It is also evidenced that outsourcing has negative consequences for the overall American economy. Even though free trade is often cited as a reason for outsourcing, Dobbs suspects that eminent economists such as Adam Smith and David Ricardo, who regularly advocated free trade, would take a different opinion if they cognise that