Outsourcing and Relative Wages - Assignment Example

We have highlighted the BPOs in developing countries because they can match the low wages and, consequently, price competitiveness offered by Samasource.... Samasource's core business is the outsourcing of digital work from large or small organizations.... The organization offers outsourcing services under five broad categories: data services, research, and archival services, machine learning, customer support services, and online content services (Samasource, 2012)....

The several benefits associated with outsourcing of jobs include higher level of creativity in production, low cost of production, higher quality of service and increased number of jobs and wages for the workers of other nations.... They not only have to pay the cost of the shipment fee but also need to afford the high wages in the state.... If the company decide to move the manufactory into China, the wages over there are much cheaper than the U....

Outsourcing has an effect on wages.... It will invariably pull down the wages in the home country because workers will have to compete with their counterparts in the outsourced countries who could do or almost do the same job at a significantly lower cost.... The law of supply and demand states that price of wages will generally fall down if there is a competition that could provide the same work at a lower cost.... On the other hand, the reverse will happen in the outsourced country in terms of wages....

Failure to pay wages strictly as stipulated can result in several implications like fines, back pay awards or even disqualification from filing any further H1B1 visa petitions for future workers.... Insert Name Tutor Course Date Introduction outsourcing, at times referred to as off shoring, is a common practice by different companies in attempts to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.... Off shore labor laws, wage laws and tax laws favor the idea of outsourcing as there is almost a certainty of maximizing profits through low cost labor....

Apart from the main issue, other issues which are discussed include lowering wages, jobs lost by the workers, giving access of information systems to third parties, as well as supporting in next elections if the idea of outsourcing the existing systems is opposed at the appropriate level.... There is one basic issue which is being discussed in this memo which is basically the outsourcing of the information systems of the State's department of transport.... While concluding, Glenn, Barbara, outlined that the proposal for outsourcing is not only against the interests of the current employees, but it is also against the State and shall be abandoned in order to save the jobs of many who may be rendered jobless due to relocation of their jobs as well as of their job skills may become obsolete....

The boom in information technology coupled with expanding internet solutions specially in the fast advancing countries like China and India, opened up avenues for outsourcing at a much lower wages.... The boom in information technology coupled with expanding internet solutions specially in the fast advancing countries like China and India, opened up avenues for outsourcing at a much lower wages.... One must look to the positive side of it and remember that apart from the financial benefits of outsourcing, it is indirectly inspiring to create new job avenues with higher wages and better lifestyles....

There is evidence that the employment effects of minimum wages are variable across countries (Neumark & Wascher, 2003) depending upon their socio economic and political environment.... The most affected are the younger workforce who usually work on much less wages and therefore become unemployed.... ny increase in the minimum wages makes employment seem more attractive than studies to those in late teens and thereby disturbs the equilibrium.... This will reflect in a changed demographic pattern in labor requirement which will be unaffected by the minimum wages factor....

Lately China has been an attractive place to outsource because of the low wages on offer and vast labor Assignment #3 If wages keep rising in China, then its comparative advantage in low-cost manufacturing will slowly be eroded by cheaper markets.... Lately China has been an attractive place to outsource because of the low wages on offer and vast labor market that are not highly skilled.... If the conditions of trade change, such as an increase in Chinese wages, then this will negatively affect international trade because American firms will not make as much profit....