Executive Summary


Today in USA, the word ‘outsourcing’ is synonymous to ‘job losses’. This wrong notion of the globalization iceberg could be viewed differently in order to provide a balanced approach on this subject to the stake holders. The business corporations and the civic administration also have a great role in creating awareness on this issue among the common masses and in dispelling their unnecessary fears. The debate on outsourcing of losing US white-collar jobs to low-wage developing countries has picked up remarkable momentum over the last year. While outsourcing has definitely been a boon by leading to globalization, it has also brought along with it the curse of job insecurity in the US which masks the real growth of US economy and its potential to innovate. As I have worked on both sides of the shores, I have attempted to provide a neutral overview on the myriad opinions that cloud around this topic.



The attractive features of outsourcing are:

• Lower operational cost thereby providing a competitive edge to businesses.
• More efficient labor leading to improved quality of products and services.
• Better productivity within a short interval of time thereby allowing businesses to keep pace with the fast moving world.
• Cheaper imports and stronger market for exports thereby improving US economy.
• Round the clock (24/7) support allowing access to improved service/support and customer satisfaction.
• Improved allocation of labor by outsourcing mundane and routine tasks, thereby allowing increased opportunities to innovate and discover new businesses/technologies in the US.


Some of the reasons why outsourcing is seen as a curse in US are:

• Loss of competitive jobs to other low waged countries.
• Lowered morale of internal employees due to potential layoffs.
• Difficulty in managing cultural differences...

Similar Essays