Is job outsourcing helping or hurting americans essay

Introduction I. It’s 2 a. m and you are online preparing your outline for a speech class when suddenly your computer crashes.

You check all the wires and connections, but the computer does not start. Frustrated and worried, you call Dell’s support line and you are greeted with “ Dell computers, this is Sean, how can I help you? ” Even though he speaks and sounds like he is located somewhere in the states, chances are Sean’s real name is something like, Mitesh, and he is helping you from across the globe in India. Sean is just one of many Indians that loves his job, the job that use to belong to an American. II So is job outsourcing helping or hurting Americans? III. It is Helping not hurting Americans. IV. Many companies are sending labor overseas, leaving Americans worried about their job status.

V. To show you that outsourcing is not as bad as it seems, we will take a look at what outsourcing is and how it has affected jobs and the economy, two of the many areas benefitting from outsourcing. First, we will take a look at what job outsourcing is. Body I. Background A.

General information 1. Moving technical jobs overseas a. Skilled jobs b.

Mainly computer and telephone jobs c. Move to New Delhi, Bombay, Manila, Shanghai, and Budapest d. According to a CBS news story presented on Aug 1, 2004 “ the U. S.

gov does not keep track of how many American jobs have gone overseas, but there are estimates that in just the last 3 yrs, as many as 400, 000 jobs have gone to places like China, Russia and India. 2. Examples – according to CBS news report cited earlier a. Amazon . com – emails b. AOL/Dell – technical calls c. Even government is outsourcing – 18 states have Indian operators answering welfare benefits calls 3. Cost of labor a.

Cut budget b. Save $ c. Up to half the cost 4. Future of job outsourcing a. Uncertain b. In the Feb 3, 2003 issue of BusinessWeek, an outsourcing expert estimated “ 40% of America’s top 1000 companies will at least have an overseas project under way w/in 2 yrs. ” B.

Description – CBS News story that aired Aug 1, 2004 1. Workers a. Called agents b. Fake American names, Sean, Julia, Terrance 2. Education a. Learn American English b. Knowledgeable; college degrees 3. Schedule a.

Most of their work done at nights b. Answer calls 24/7 Now that we have a clear understanding of what job outsourcing is, we will take a look at how it is affecting American jobs. II. Jobs A. American job loss 1. In the Feb 19, 2004 issue of the Economist a report by Forrester Research predicted “ 3. 3m American service- industry jobs will have gone overseas by 2015. ” 2.

Explanation a. Number of jobs is not a lot b. Not high paying jobs of information technology c. Same jobs that could become automated; bank tellers, system operators 3. Impact/Outcome a. Give people more opportunities b. Go back to school, higher education c. Or as BusinessWeek stated in an article titled “ The New Global Job Shift” from its Feb 3, 2003 issue, “ U.

S. abor force and capital can be redeployed to higher value industries and cutting edge R & D. ” B. Not all jobs will be lost, jobs will be created 1.

According to the previously cited issue of BW, “ For security and practical reasons, corporations are likely to keep crucial R&D and the bulk of back-office operations close to home. 2. Explanation a. Keep jobs that require face to face contact b. Medical and legal fields c. Communication/contact is important 3.

Impact a. New jobs allow people to go where they are most productive b. Americans will have higher paying jobsOutsourcing not only affects jobs, but it also affects the economy. III. Economy A. Increased productivity 1. According to ETalkingHead, a political web magazine a Feb 12, 2004 article claimed outsourcing “ is the equivalent of discovering a new super computer that can produce more output using fewer resource inputs. ” 2.

Explanation a. Cut costs, improve efficiency b. An article titled “ The New Global Job Shift” in BW cited earlier, claims that “ by spurring economic development in nations such as India, U. S. companies will have bigger foreign markets for their goods and services. ” 3. Impact a. High productivity = high standard of living b.

CBS news report on Aug 1, 2004 stated that American products more affordable B. Benefits from globalization in the past 1. Feb 19, 2004 issue of the Economist, Catherine Mann claims that 10 – 30% of the fall in comp. prices due to globalized production of computers in Chinese factories 2. Explanation a. Global economy b. Already sent shoemaking, toy making jobs overseas c.

IT jobs next step 3. Impact a. Already gained in manufacturing sector b. Expect more gains in service sector Outsourcing is just another form of globalization that allows America to be a leading global economy. IV. Some Myths- According to The Heritage Foundation- Research on foreign and trade aids. A. Myth #1: America is losing jobs.

Fact: More Americans are employed than ever before. The household employment survey of Americans indicates that there are 1. 9 million more Americans employed since the recession ended in November 2001. There are 138.

3 million workers in the U. S. economy today—more than ever before. B. Myth #2: Outsourcing will cause a net loss of 3.

3 million jobs. Fact: Outsourcing has little net impact, and represents less than 1 percent of gross job turnover. Over the past decade, America has lost an average of 7. 71 million jobs every quarter. Error! Hyperlink reference not valid.

The most alarmist prediction of jobs lost to outsourcing, by Forrester Research, estimates that 3. 3 million service jobs will be outsourced between 2000 and 2015—an average of 55, 000 jobs outsourced per quarter, or only 0. 71 percent of all jobs lost per quarter. C. Myth #3: A job outsourced is a job lost. Fact: Outsourcing means efficiency. Outsourcing is a means of getting more final output with lower cost inputs, which leads to lower prices for all U. S.

firms and families. Lower prices lead directly to higher standards of living and more jobs in a growing economy. D.

Myth #4: Outsourcing is a one-way street. Fact: Outsourcing works both ways. The number of jobs coming from other countries to the U. S. (jobs “ insourced”) is growing at a faster rate than jobs lost overseas.

According to the Organization for International Investment, the numbers of manufacturing jobs insourced to the United States grew by 82 percent, while the number outsourced overseas grew by only 23 percent. y__ftnref4Moreover, these insourced jobs are often higher-paying than those outsourced. mK? (mK? (mK? Conclusion I. So is job outsourcing helping or hurting Americans? II. Despite some losses, outsourcing is beneficial. III. First we looked at what outsourcing is, followed by how it has affected American jobs and the economy.

While some jobs have been lost due to outsourcing, the gains outweigh the losses because of greater opportunities. In addition, outsourcing helps the economy. IV. The negative impact of outsourcing on the economy and American employment has been greatly exaggerated, and the benefits of outsourcing almost entirely ignored.

V. So when you end up calling Dell support because your computer crashed while doing online for persuasive speech, try not to think of Sean as a job stealer, but rather as another helper in our global economy. Bibliography Bernstein, A. , Engardio, P.

, & Kripalani, M. (2003, February 3). The new global shift. BusinessWeek. Bush report: Sending jobs overseas helps U. S. The Seattle Times. (2004, February 10).

Hussey, Michael. (2004, February 12). Job outsourcing good for America.

ETALKINGHEAD. Out of India. CBSNews. (2004, August 1).

The great hollowing-out myth. The Economist. (2004, February 19).