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Outsourcing and Healthcare Policy in the US - Research Paper Example

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The research paper “Outsourcing and Healthcare Policy in the US” highlights healthcare perspectives for the full-time and remote employees. The needless to provide medical insurance to freelancers makes them even more attractive to employers while office workers are afraid to be in the street…
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Outsourcing and Healthcare Policy in the US
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Download file to see previous pages The history of outsourcing in the United States dates back to the times when the United States sought to catch the grip of control over stagflation. The beginning and the middle of the 1970s in the U.S. were marked with the growing unemployment and inflation which slowed down economic growth in the country. Meanwhile, the Fed raised interest rates to almost 20%, hoping that high-interest rates would work against inflation but their effects on the economy were virtually the opposite. In 1981, the U.S. entered the period of continuous recession which was accompanied by the dramatic increase in the value of the dollar. The U.S. decision to bring down the value of the dollar was too late and America had already been in the midst of the severe unemployment. Car companies were the ones to suffer the consequences of unemployment and recession the most. The growing foreign competition and the increasing costs of production resulted in unprecedented measures: GM was the first to close ten of its factories and to move them to Mexico – that was the beginning of what later was called outsourcing.
The history of outsourcing in the U.S. sheds the light on the reasons that stand behind the growing scope of outsourcing in America: its remarkable ability to reduce labor costs. Following GM, the major filmmakers in the U.S. moved their businesses overseas and hired plenty of foreign English-speaking workers, which contributed to the development of filmmaking in the U.S. The growing rates of outsourcing were followed by and resulted in the manufacturing increase, while the U.S. firms were searching for additional opportunities to do business in foreign countries. Globalization opened the new frontiers, and American employees were no longer valuable. Instead of hiring one engineer for $80,000, American companies hire 10 foreign English-speaking engineers for the same sum of money. With time, outsourcing became the distinctive feature of the American IT business – today, IT business outsource the majority of their personnel and can boast having one of the best indices of efficiency and cost-efficiency across the most flourishing U.S. industries. ...Download file to see next pagesRead More
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