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Outsourcing American Jobs to Foreign Countries - Case Study Example

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While most American families would view outsourcing jobs to foreign countries as a threat to the American family structure, many people believe that this opens up other beneficial doors. At its core, outsourcing is about efficiency. It is a way of increasing production while decreasing costs…
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Outsourcing American Jobs to Foreign Countries
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Outsourcing American Jobs to Foreign Countries

Download file to see previous pages... Likewise, this same report indicates the unemployment rate has hit an all-time low at 5.6 percent. This information is supported by another report produced by the Labor Department (2006) indicating that American has only lost an average of 7.71 million jobs every quarter. Based on this information, Forrester Research has estimated that the worst case scenario would have America losing approximately 3.3 million service jobs in the period from 2000 to 2015. Calculating the math, these figures show an average of 55,000 jobs lost to outsourcing each quarter, which only comprises approximately 0.71 percent of all available jobs in America. Some people feel it is our own fault jobs are going overseas as consumers continue to demand lower costs even though many of them also complain about the results of this demand, such as having to deal with foreign call centers. Jill Insley of the Observer Cash Pages reports, “Insurers consistently argue they have to take advantage of the cheap but skilled workforces in countries such as India to produce the low premiums and competitive interest rates customers demand.” In addition, there has been some skepticism as to whether these cost-saving measures, such as foreign call centers, actually translate into true savings. Citing research conducted for Aviva, Insley indicated only 28 per cent of the respondents to a survey felt lower costs due to foreign call centers would lead to lower premiums for American consumers while a majority of respondents indicated that service provided was not up to the standards expected. ...Download file to see next pagesRead More
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