Perspectives on the Effects of Job Outsourcing from the United States to Asian countries: A Comparative Analysis
The influx of outsourcing jobs from the United States to specific countries in Asia, or the practice of off shoring, is both a social and economic phenomenon that demonstrates how, in the advent of computer and Internet technologies, even economic elements such as the workforce can become boundless in terms of geographic location. Because of the surge of outsourcing jobs to Asia, American society is experiencing a perceived "loss" of opportunities economically, wherein jobs are shifted from Americans to Asians, and the flow of profits are targeted towards outsourced businesses rather than domestically-located ones. Socially, it is perceived that outsourcing has also led to an increase in employment, as more and more Americans are laid-off, replaced by the IT expertise and cheap cost of labor in Asia.
These perceived notions and assumptions about outsourcing as the prevalent and most popular business practice among North American businesses at present are, as what is discussed in this paper, inaccurate portrayals of the phenomenon's effects to the US. Although outsourcing has its disadvantages as a business practice, this does not include an increase in the unemployment rate of the country. In this paper, the effects of outsourcing are discussed thoroughly, wherein these effects are analyzed comparatively with each other. The paper offers three perspectives from which the effects of outsourcing are analyzed: (1) from the perspective of the US economy; (2) perspective of the IT industry; and (3) perspective of the outsourcing business per se.
The first perceived effect of outsourcing is that it will negatively affect the US economy, particularly, its potential in increasing the country's unemployment rate. This assumption is developed from the fact that labor wages in Asia are relatively cheape...