Outsourcing

The effect of outsourcing on the US economy has been a core concern of much outsourcing discourse. Those who favor it say that outsourcing improves the US economy because it enables businesses that do so to increase their productivity, hence their profitability and return on investment, as well as increase the benefits that accrue to shareholders from the other increases (Drezner, 2004). On this view, the economic effects of outsourcing are linked to the benefits of international trade. However, there is also a view that outsourcing has contributed to the domestic unemployment picture, since American jobs are lost to foreign sources when outsourcing occurs. According to

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eation of brand-new domestic jobs, even though the public perception is that the outsourcing of certain jobs has gotten most of the publicity. The apparent benefits to companies of outsourcing does not mean that outsourcing as a concept or a practice is completely beneficial. Madrick, in that connection, says that one aspect of outsourcing has not been sufficiently discussed in all the focus on macroeconomic features of the practice: "the plight of the losers" (2004, p. 1). In other words, one of the key problems of outsourcing, which ipso facto involves the appropriation of specific jobs from one geographical location to another, is the human cost. Who is the person whose job gets transferred? That person does not transfer "out," so to speak. Instead, the job gets transferred out, and the person is left. The result on the domestic side is "job dislocation," in concert with the vicissitudes of getting reassigned within the same company or of obtaining a new job away from the outsourcing company. In Drezner's view, companies that outsource jobs more than compensate within their ranks. He cites the outsourcing of 3,000 IT jobs at IBM during the same period that IBM announced plans to hire 4,500 new US positions, saying that IBM and
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According Drezner, IBM Oracle, Delta Airlines, , Dell Lehman, Meanwhile Madrick, Drezner Madrick, Retrieved April, madrick 2004, Drezner DW, drezner 2004, 2004 1, 2004 4, labor costs, according drezner, outsourcing jobs, american jobs, effects outsourcing, anecdotal evidence, Outsourced America, madrick 2004 1, april 25 2004, retrieved april 25, job transferred person, 2004 4 words,
Approximate Word count = 1747
Approximate Pages = 7 (250 words per page)

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