Outsourcing sparked a rather controversial take way back in 2004 in the political arena of the United States. When thousands of Americans started to lose their jobs because a number of companies and even major businesses, especially in the Information Technology sector, started getting cheaper employees from outsourcing companies in certain parts of Asia, activists and some politicians branded outsourcing as inimical to the citizens of America.
The very core issue here according to the group opposing the method, is that offshore outsourcing robs jobs from the American citizenry. And of course, they have a point here. If one IT company for example, passes on 100 jobs to India, the painful truth is, then 100 Americans will then be laid off.
But Fox News reiterates this, saying that, it's just a short term effect. In the long run, when American companies who outsource have gained a firm business foundation, they will then start hiring native employees who could receive fairly high salaries. It also added that the major problem that America will be encountering if the government would start to make precautionary measures against companies doing outsourcing jobs is that it will hurt the global economic interdependence of nations. Fox claims that " the countries exporting jobs to the U.S. will forbid their own companies from coming here. The net result will be an overall loss of U.S. jobs. Not to mention that we’d have fewer goods to choose from as consumers, and what goods we could choose from would be more expensive, which also costs jobs."
Whatever clamors some people may fuel, if there is one thing that they cannot curb from advancing, it's globalization. OF course we cannot just expect that the developing countries will just sit and wait for the apple to fall from the tree. With rising education rates, a younger work force, and dominant English usage all around the globe, these countries also contend tough competitions to enter the global market. For the individual entrepreneur, the cheap services that they can offer is worth giving in the temptation to bite into the juicy red apple.
Job displacement is inevitable if a country is to ride on tide of technological advancement and transnational competitiveness. Computers, robots, automobiles, and mechanical devices - these inventions are now necessities in modern living. All of these are important keys to a shift in the working industry. The introduction of these innovation displaced jobs indeed - but it also generated new ones.
The very core issue here according to the group opposing the method, is that offshore outsourcing robs jobs from the American citizenry. And of course, they have a point here. If one IT company for example, passes on 100 jobs to India, the painful truth is, then 100 Americans will then be laid off.
But Fox News reiterates this, saying that, it's just a short term effect. In the long run, when American companies who outsource have gained a firm business foundation, they will then start hiring native employees who could receive fairly high salaries. It also added that the major problem that America will be encountering if the government would start to make precautionary measures against companies doing outsourcing jobs is that it will hurt the global economic interdependence of nations. Fox claims that " the countries exporting jobs to the U.S. will forbid their own companies from coming here. The net result will be an overall loss of U.S. jobs. Not to mention that we’d have fewer goods to choose from as consumers, and what goods we could choose from would be more expensive, which also costs jobs."
Whatever clamors some people may fuel, if there is one thing that they cannot curb from advancing, it's globalization. OF course we cannot just expect that the developing countries will just sit and wait for the apple to fall from the tree. With rising education rates, a younger work force, and dominant English usage all around the globe, these countries also contend tough competitions to enter the global market. For the individual entrepreneur, the cheap services that they can offer is worth giving in the temptation to bite into the juicy red apple.
Job displacement is inevitable if a country is to ride on tide of technological advancement and transnational competitiveness. Computers, robots, automobiles, and mechanical devices - these inventions are now necessities in modern living. All of these are important keys to a shift in the working industry. The introduction of these innovation displaced jobs indeed - but it also generated new ones.
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