Custom essays: Outsourcing America

Foreign outsourcing of job quickly became a disputable national question. It is necessary firstly to explain the meaning of the notion “outsourcing” and then continue to discuss this problem with more details in the body of the paper. According to Hira & Hira we see that “outsourcing is contracting with another company or person to do a particular function. Almost every organization outsources in some way. Typically, the function being outsourced is considered non-core to the business. An insurance company, for example, might outsource its janitorial and landscaping operations to firms that specialize in those types of work since they are not related to insurance or strategic to the business. The outside firms that are providing the outsourcing services are third-party providers, or as they are more commonly called, service providers.” (Hira & Hira, 2005). Thus, it becomes understandable that one part of mangers is seeing outsourcing as a way of improving the competitive capacity of a company; also, they believe that it is a way of maintaining a company. Nevertheless, another part of community is seeing outsourcing in a negative light. The reason of such kind of criticism understands that many people are losing their job and many people are getting less money than they could do.
The purpose of my paper is to discuss how the mechanism of outsourcing is working; to look through the history of this phenomenon and its background; to discuss facts about outsourcing. Special part I want to devote to the problem of payments. U.S. companies that move factories to undeveloped nations barely pay employees enough to live on; is it unethical to pay cheap wages or are companies doing those workers a favor?
Let us start form some background. Why do companies outsource? First of all, it gives companies an access to foreign markets. It is not so easy to become in demand at the new business territory. A company should examine where customers are located and get some consultation. Often a company tries to make it gently; they are not telling foreign customers that they are going to come there.
Most of the time workers who are already employed by a company in the US cannot come to another country and work there. In such case, companies decide to send work to the country and employ its citizens. On the one hand, it gives people working places. On another side, companies prefer to use an advantage of lower cost and barely pay employees enough to live on.
This practice originates in the time when some companies, telemarketing and services in the United States outsourced a work from urban to rural areas. Labor costs lower there and companies used the benefit of it. Often they helped to pay transport money for enterprises to support the process of getting the new market abroad and at their home country.
Since the time when outsourcing was used for the first time, the international situation changed a lot. An economic isolationism disappeared long time ago and now new markets are open to a different type of companies and services. Leading companies are using the opportunity to get an access to new fields and they are sending representatives oversea and to the neighbor countries. Often the revenue from abroad exceeds the domestic one. Companies understand that their representative alone cannot produce a product by themselves. That is why companies subcontract their activities to domestic companies. It gives both of them great benefits. One of the outsourcing achievements is the opportunity to provide around-the-clock coverage for any business. So work never stops and income of a company is growing.