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Offshore Outsourcing: A U.S. grim reality

Business thrives everywhere whether it is in a remote place somewhere in the southern tip of the islands of an Asian country or the tribal villages of the African continent. This is not the same however, with the kind of business done in these and other countries whenever the multinationals are concerned. The exchange of skills and global relations at the same time is also happening right now in these very places. Where offshore outsourcing is involved, China is perhaps the most known illustration of what it means.

In countries like India and the Philippines, Call Centers, for instance, an industry virtually unknown five or ten years ago has become the source of income for the average fresh graduate with a four or five – year degree. Picture an Indian or Filipino catering to customers or clients from places that generally, they cannot even imagine or in many cases, they have only seen in movies and are mentioned in the evening news. In other occasions, a scenario such as Americans buying and enjoying things and gadgets by bulk at such amazingly very low prices, all with tags “Made in China” is however, no longer new.

Who can probably resist a very cheap cost of otherwise expensive items when the tag indicates a product made in the U. S. A.? Conversely, critics can’t help but voice out their opposition and express their repulsion to scenarios like these that virtually kill the American economy – slowly, but surely. This paper asserts that facts show this trend is true: whether domestic or international, inshore or domestic employment of foreign workers, and offshore outsourcing, all these will not contribute to a long-term economic expansion for the state.

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This paper will demonstrate that the economic development model that the Americans opted far outweighs the advantages that were expected to be gained: inshore and offshore outsourcing takes jobs literally from Americans. Problem Statement The following statements of the problem guide the direction of this study with the succeeding chapter providing the description towards these problem statements. Answers to the problems are incorporated in and as the analysis and discussion of the findings and results.

Statement of the Problem What is globalization and its relevance to development? What is outsourcing and its classifications? What are the effects of globalization in general, and outsourcing in particular, to the US citizens and its economy? Definition of Terms The following terminologies are significant expressions prevalent throughout this treatise, and are pertinent to the understanding of the study. ~ Globalization.

A “comprehensive term for the emergence of a global society in which economic, political, environmental, and cultural events in one part of the world quickly come to have significance for people in other parts of the world” (Tabb, 2006). Offshore outsourcing/Offshoring. “The transfer of high wage U. S. jobs to lower cost overseas locations” (O’Neill, 2004).  Multinational corporations. “Sometimes called transnational corporation or International Corporation, business that produces or distributes products or services in one or more foreign countries by establishing a branch or affiliate there” (Greenhouse, 2006)

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