Outsourcing jobs leaves the American white-collar worker behind

Jun 13, 2008

Outsourcing might be good for American corporations, but it's not necessarily good for American workers, and it's likely to be bad for the American economy, even in the long run.

The revised edition of Outsourcing America: The True Cost of Shipping Jobs Overseas and What Can Be Done about It (AMACOM) written by Ron Hira, assistant professor of public policy at Rochester Institute of Technology, and Anil Hira, professor of political science at Simon Fraser University in Vancouver, brings attention to the voiceless white-collar American worker.

Moving jobs overseas is reshaping the American economy to suit corporate America. It also compromises American workers, the authors maintain. The trend has increased significantly since Outsourcing America was first published in 2005 and now includes different skill levels and types of jobs, says Ron Hira.

Released this spring, Outsourcing America updates the outsourcing debate and critically assesses the role corporations play in setting policy for high-skill immigration and outsourcing, the practice of moving American jobs across national borders. The authors also look at outsourcing trends in Europe, Canada and Australia, and other developed countries.

Outsourcing America closely examines the message businesses send when they threaten to outsource more jobs if not allowed to import cheaper guest workers.

"What they're saying is that increasing the guest worker program (H-1B and L-1 visa programs) will keep jobs here and save jobs from being offshored," says RIT's Hira. "When in reality those programs are being used to do knowledge transfer to transfer jobs overseas. The business community is on the one hand saying outsourcing is good, and on the other using the threat of outsourcing to change immigration policy. It's quite clever."

Instead of American companies competing against foreign rivals—which was the case in the 1980s when American semiconductor, auto and steel manufacturers lost market share to Japanese manufacturers—companies are now pitting their American workers against their overseas counterparts. According to Hira, this changes the political dynamics, but more importantly, changes which policies will be effective.

The white-collar worker has no representation in the outsourcing debate controlled by business interests, he notes. Likewise, the U.S. government has taken no policy response to outsourcing, an issue that has surfaced in the 2008 election season.

"The presidential candidates have tried to use the issue of outsourcing to their advantage, but once you cut through the rhetoric, there isn't much substance behind the policy proposals from either candidate," Hira says.

The authors recommend establishing a new organizational institution that represents American workers, something akin to the influential AARP, but on issues that directly affect the workplace.

"We don't have an organization for people who work," Hira says. "There's almost no awareness even that people aren't represented in Washington. And I don't see anybody talking about it."

Source: Rochester Institute of Technology

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SDMike
4.5 / 5 (2) Jun 14, 2008
"There's almost no awareness even that people aren't represented in Washington. And I don't see anybody talking about it."

Gee wasn't that supposed to be the House of Representatives? I guess it just shows how badly broken our (USA) system of government is. Corporations control both houses of congress to the extent that neither states nor citizens are being represented. Both foreign and domestic policy are twisted to suit the interests of wealthy companies and company executives. Citizens and small business are completely ignored. The almighty dollar is more powerful than the sacred vote. With two parties controlling the federal government any "political discourse" is just slight-of-hand to entertain and deceive voters.
plasma_guy
4.5 / 5 (2) Jun 15, 2008
The outsourcing frenzy just goes to show that any advanced technology developed in the United States is too expensive to keep in the United States. It is cheaper for corporations to export the technology since costs for the same services will be cheaper abroad.
suzzane
not rated yet May 15, 2009
Outsourcing is cheaper for organizations. It helps them to save their money.

Deciding whether or not to outsource particular tasks is one of the many important decisions both large and small companies alike have to make often. This can be a difficult decision at times but often the decision making process is greatly simplified and it becomes clear that outsourcing is the only viable option.



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Suzzane
suzzane
not rated yet May 15, 2009
In my opinion there are times when the Organization is forced to outsource their work Overseas / Somewhere else.

Sometimes outsourcing becomes the only option available because there are no in-house staff members qualified to perform a particular task. This often occurs when a task requires a highly specialized degree or area of expertise. This is especially problematic when the task in question is one which is extremely rare. When this is the case it does not make sense for a company to hire an employee with these capabilities when they will be rarely utilized because employees who are not productive are expensive to the company. However, if this task becomes one which is required regularly, the question of whether or not to outsource the task becomes more complicated. As this article is focusing on situations where outsourcing is the only option, we will not delve further into the factors which complicated this decision such as labor costs and increased manpower.

Outsourcing uk jobs
Outsourcing jobs in the uk is a viable option.

uk outsourcing

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For more information on outsourcing visit the link:

outsourcing uk jobs

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