Outsourcing: To Help or to Hurt? That Is the Question

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Albert G


Date added:

March 4, 2014








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4 / 1032


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These jobs are being sent over seas by corporations due to labor being cheaper. Big corporations have found that outsourcing service sector jobs gives them the opportunity to employ three to four foreigners at the same pay rate they offer for one American. Also, due to inflation in America, manufacturing costs are cheaper over seas...
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Big corporations can decrease over all production and human resources costs. America has seen a loss of 395,600 jobs (Srivastava & Theodore, 2006) in the IT submarket alone in the last decade. There has only been a rebound of one-quarter (98,900) of these jobs lost. "?, the dividing line between the jobs that produce services that are suitable for electronic delivery (and are thus threatened by off shoring) and those that do not does not correspond to traditional distinctions between high-end and low-end work" (Blinder, 2006)...
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