Abstract

ABSTRACT

Today the majority of American companies currently outsource. Outsourcing has many benefits to both large and small businesses. In most cases it provides much cheaper labor. Outsourcing also allows for businesses to employ workers who are trained specifically in that field, rather than hiring new employees as well as training them. If a company needs a project done in one month they are able to outsource to a company that only does that year around, while your own company handles many different things. This means that the other company, which has much more experience, will be able to complete the job much more efficiently. The dictionary definition for outsourcing is: “(of a company or organization) to purchase (goods) or subcontract (services) from an outside supplier or source.” So this supplier can be domestic or foreign. Dealing with foreign outsourcing can in many cases be extremely beneficial to a company because labor costs in many other nations are much lower. The drawback to foreign outsourcing is that it is taking away the jobs of Americans and putting money in the hands of foreigners, rather than our fellow Americans. Foreign outsourcing is generally the result of a company in a last ditch effort to save themselves from bankruptcy, usually during harsh economic times. In the 1980's recession GM was forced to move 10 of its factories from Detroit to Mexico to save themselves from bankruptcy. They started foreign outsourcing in America. By 1990 all of the other major American auto companies had followed GM. Then as the “.com” era grew these outsourcing jobs became computer tech jobs, specifically in India which has many educated computer related workers willing to work for a tenth of the cost of an American worker. This is when outsourcing really started to become a problem. Before when GM outsourced to Mexico they were taking the jobs away from many underclothes Americans working in a manufacturing company. When more and more jobs were being outsourced to India this began to take away the jobs of highly educated Americans who were specialists of their field. These specialists were now left without jobs in a highly specific field of work with a limited number of job opportunities. These highly educated computer specialists are now left in a worst place than the GM worker who could easily switch careers, because they hadn't invested large amounts of money on college to train for that specific field. Many American jobs are being outsourced to countries like India every day. Our proposed solution is not a drastic one. We are not suggesting that all American companies simply bring back all of the jobs to America. We understand that it would be extremely bad for any company to do so. It would force them to multiply their salary costs by ten, of course this is impossible, especially with the way the economy is right now. Our proposed situation basically makes the best out of a bad situation. If put in to effect we will no longer be boosting the economy of a faraway country. Instead we will be helping our neighbor Mexico. Currently we are supplying thousands of Indians with computer jobs that really belong to Americans. Is that helping us out at all in any way? For the most part, No. India having a strong, stable, or even weak economy does us neither good nor bad. By bringing these jobs to Mexico it will do us some good. This is not just a favor to Mexico, it will help us out as well. Mexico will be given all of these new jobs that are actually high paying for them, while still low paying for us. With all of these new high paying jobs Mexico's economy will be boosted. With a more stable economy fewer and fewer Mexicans will immigrate to America in search of work. With this new change our next-door neighbor Mexico will have a stronger economy. While here at home we will see the numbers of illegal and legal Mexicans coming across the border. With fewer Mexicans coming to take our already short supply of jobs. These jobs will be left for the Americans who need them. So we will still be losing the computer jobs but we will no longer be losing the jobs currently being taken over by immigrants.