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Global Outsourcing - Essay Example

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The essay "Global Outsourcing" focuses on pros and cons of outsourcing for the global and local economy. While the objectors of outsourcing in the United States claim that it will result in layoffs and dislocation for many US workers, most economists believe that it will ultimately strengthen the US economy…
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Global Outsourcing
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Download file to see previous pages Despite the recent economic downturn, according to a McKinsey Analysis, the U. S. economy created an average of 3.5 million new jobs in the private sector per year (Otterman). Nine million people come on to the job market every year (Gardels, 2004). Outsourcing helps to stimulate the economy. The loss of jobs can be attributed to other factors like the bursting of the tech bubble and its effects on Wall Street, the consolidation of retailing under giants like Wal-Mart, and the after math of September 11 and other events.
The Bush administration is convinced that shifting the white collar jobs to the developing countries might cause short term pain but is a part of the positive transformation that will enrich the US economy over time. The Information Technology Association of America (ITAA) also agrees that while outsourcing white collar jobs may have thrown some Americans out of jobs, it will ultimately lower the inflation, create jobs, and boost productivity. Just when layoffs and ‘pay-for-performance’ was taking place, educated and eager workforce emerged in countries like India, China, Malaysia and Vietnam.
Outsourcing assists with a form’s globalization strategy, helps broaden infrastructure capabilities, and offers local market access advantages it can help alleviate the technical labor shortages in the West.Other benefits include access to skilled personnel across the world, exploitation of follow-the-sun model to improve delivery schedules, and make up for the gaps in the internal capabilities of the firms ...Download file to see next pagesRead More
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