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Benefits of Outsourcing U.S. Jobs

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When a customer calls a toll-free customer service telephone number, it is possible that the call will be routed to a foreign country such as India or Argentina. A technician in that country trained by the American company to answer questions will solve the customer's problem, often within a few minutes, and the customer will typically not have any idea where the call center is located. Increasingly, American companies are taking advantage of highly educated labor pools outside the United States where wages can be one-tenth of what these companies would pay employees within the United States. In many cases, jobs are transferred overseas with the result that American workers are put out of work. In other cases, jobs are simply created in the foreign country which limits job creation in the United States. Media coverage tends to focus on those American workers who are put out of work, but there are some economic analysts who maintain that relocating jobs overseas will result in more and better jobs domestically. This research considers that argument.

When most Americans hear about outsourcing jobs overseas, they typically associate the move with laid-off workers locally and a boon to the destination country's economy. Such impressions are reinforced by the story of Sykes Enterprises, which opened two call centers in Kentucky after receiving several million dollars in incentives, and which then closed the call centers after only a few years, r

. . .
jobs that are created in the wake of relocation. Advances in telecommunications, including the widespread use of the Internet, makes instantaneous communication possible around the world. This makes it possible for software designers in one country to create algorithms and specifications that programmers in another country can use to develop software. The same is true for many other types of service jobs, including routing telephone calls from disgruntled or confused customers around the world to a call center in India or China ("Beyond the Bubble" 4). Latin America is also proving a popular destination for outsourced jobs, in part because of its proximity and time zone advantages and in part because companies recognize the increasingly large market of Hispanic customers in the United States. Argentina, for example, is three hours ahead of the eastern United States, making it an attractive call center location for customer service organizations ("Latin America" n.p.). Key to a company's success in moving jobs overseas is understanding what types of jobs and projects can be outsourced to begin with, and which of those are appropriate for international relocation. Some companies, such as ValiCert based in Silicon Valley, hav
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Approximate Word count = 1326
Approximate Pages = 5 (250 words per page)

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