Outsourcing in America

Seminar paper from the year 2012 in the subject Business economics - Business Management, Corporate Governance, grade: A, University of Newcastle upon Tyne, language: English, abstract: Americans are crying foul on the way their economic future has been put at risk. American corporations have literary opened a Pandora's Box, in their quest to reduce the expenses on getting some specific tasks accomplished. This is at the expense of the Americans who, day by day are losing lucrative jobs to foreigners who are experts in the various fields. In the early 2000, the media was flooded with reports on how the US was slowly doing itself an injustice by unleashing some of the best jobs offshore to China, India and China, where the cost of getting the job done was much cheaper. The government's acknowledgement through Dr. Gregory Mankiw, who used to be President Bush's Chief Economic Advisor in 2003, raged the storm even further. His assertions that exporting of very high value jobs was productive for the country were unsettling. This essay seeks to explore how Americans are highly disadvantaged by the outsourcing evil that has struck the US like a plague. Moreover, the various options available for the country to redeem itself are further discussed and examined deeply. As peter DeFazio puts it 'We are entirely outsourcing United States' industrial base to China. Economic implications along with national security issues are a concern'. Outsourcing has become a reality that has posed a dilemma in the USA. Experts indicate that the phenomenon is unstoppable and can never be ignored. More than 14 million white collar jobs are vulnerable of being outsourced. It should be noted that these are high paying jobs with as average salary of $31, 720. By the end of 2005, more than 800,000 jobs had been moved overseas from the US. Various fields have been adversely affected. Notably, any work that can be sent over the wire is likely to be outsourced. Some of the fields include information technology, newspaper reporting, call-center operators, legal services, engineering tasks and accounting. Moreover reports have indicated that more than 2 million jobs in the banking and securities sector are likely to move overseas in thus. There are also more than 700,000 customer