Nowadays, many companies use outsourcing to be an alternative source to do specific work, processes, and activities to get benefits from within an organization to outside providers without aware of effects on local worker or country economic. According to Reap W. (2012), some companies in United States and other area make a lot of profits from outsourcing in term of economy and businesses such as production of material product while others are suffer from transferring outsourcing job to other countries that impact on United States economic.
Companies should once about local workers more than self-benefit because if they continue to destroy local Job that will cause major problem to society. According to wry. Serviette. Com, what is outsourcing (n. D. ), outsourcing is a process of hiring outside internal companies or workers from domestic or abroad to do specific work such as manufacturer, marketing or even content writing. Presently, outsourcing is very popular in slow develop countries such as Laos, Vietnamese, India and Thailand because several factors.
According to Overly (2007), low costing, lack of n-house resource, variable capacity, access to specific IT skills, increase flexibility to meet new business and commercial conditions , these are the major factors that lead big country come to invest outsource in undeveloped country. For example, according to Matthews (2012), many U. S companies invested in India and Vietnam such as Aids, Leno. These companies mainly produce their product oversea because lower labor cost that make them produce product in cheaper price and customer can afford it.
Another example is gasoline, gasoline price is continue decrease, even Hough much oil are produce from other countries so public was stated that the factor effect to gas prices are more money spend needs and other wants. According to Plunked research, “Introduction of outsourcing and offshore industry’, one of outsource service very popular and continue to be strong hiring thousands of Jobs to work in China and India is engineer and researcher that in 2010, the number of worker in IBM is from oversea is over 80000 people and it reached to 112000 people in 2012.
These examples were connected to the reasons of manufactured goods and sots, materials and services. Outsourcing causes local worker who live or work in developed country lose their Job. According to Mapping (2008), outsourcing purpose is to cut production cost by hire other foreign companies and workers to do specific work so it leads to people losing Job and 40 percent of US company is sending Job to foreign countries and over 31 percent of US citizen are lose their Job. This statistic seems obvious that outsourcing make US citizen loses their Job and it can connect to major problem.
For example, according to kimono (2009), an increase of trade U. S. Jobs to oversea as well as increase of Jobs losses that has impact on U. S. Economy as a whole such as MM, Ford Motor and GE Capital have sent a high number of Jobs to other countries and chosen employ cheap labor instead of hiring worker in their country. According to the article “what is outsourcing”, one of the major factors companies choose outsourcing is cost of outsourcing that can reduce amount of money by outsourcing some of the Jobs and tasks such as content creation and server monitoring and management.
According to Alex (201 1), a research shows the estimate number of outsource in 201 5 is 3. Millions Job send to oversea as a result thousand of U. S Jobs will be lost each year and it leads to be shutdown country economic and that layoff
Moreover, outsourcing can make many Jobs at risk to distinct, according to Opposing viewpoint “Legislation to Limit Outsourcing Is Essential and Effective”, The Bureau of Labor Statistics shows that about 51 5 occupations are at risk to distinct and 160 of these Job are change to be offshore outsource and over 300,000 occupations will disappear annual after year 2015. These reasons have showed that outsourcing causes Job losing, slow development and mental illness on people. Moreover, outsourcing causes global economic crisis which is major problem to every country because it can affect to world economic.
According to Rather (2014), who has a PhD in organic chemistry from Oxford University as well as a Bachelor of Technology n chemical, In 2013, the number of unemployment is increased millions people that causes global economic crisis, in contrasted, India, a country which education has just boomed, there are now has fewer people unemployment than U. S. ‘s. According to Losing Jobs, The real impact of the Economic Crisis (2012), “As more and more businesses go to the wall, rising unemployment levels are a clear and devastating indication of the problems that workers are facing worldwide.
The International Labor Organization is forecasting that more than 50 million workers could lose their bobs this year and up to 200 million more will be plunged into extreme poverty. The Organization for Economic Cooperation and Development says that by next year jobless numbers in rich nations could rise by eight million to 42 million. The UK has just registered the biggest quarterly Jump in unemployment since the 1981 depths of recession. ” This is a result from outsourcing that lead to local worker in U.
S loses their Job and it may lead to major problems. For example, according to Junker (n. D. ), investment in real capital cities is stagnant and a lot of consumers have slowed Roth in paying money and it make economic crisis. These factors are connected to slower develop country and if this continue to long-term protesting will happen in finally. On the other hand, outsourcing can improve country economy and develop country standard. According to Grant G. (n. D. ), outsourcing can offer over 90000 Jobs to local worker and foreign worker in 2003 that U.
S. Companies use offshore sourcing lower costs, to allow them to hired U. S. By called for a tax credit to help pay extra money for American companies which agreed to stop hiring worker overseas operations to take umber of Jobs back to American land as part of his “incurring” agenda. Surprisingly, more than 100,000 IT Job software and hardware are moved to other countries , but the number of U. S. Job is created more than 90000 as the result from cost saving and offshore outsource. However, outsourcing can destroy country economy and overview of country.
For example, outsourcing causes major problem by job losing when people lose Job, they will concern their money how to live, how to spend their money as the result they will spend money less and country economic will struggle then country will slower developed. Moreover, when people get more stress and it over limited that person can cope with, they will suicide and this problem will bring overview of country get worse so these can demonstrate that outsourcing can cause many problem that a problem connected to other and it will be major issue.
In sum, U. S. Companies and government should cooperate to reduce number of using outsource to solve the following problems that will happen after offshore order to relief economic crisis and decrease number of unemployment that caused by outsourcing.