Outsourcing Trade in Informational Technology Case Study

S. Advocates of outsourcing respond that the accumulated revenue can be used to fuel development in the local economy, including domestic businesses in the developing world, making a nation more rather than less independent. Also, U.S. businesses must be more mindful of conditions abroad, given that their own livelihood depends on a stable foreign workforce. Globalization of the economy creates a more interdependent and peaceful world.

Proponents of outsourcing find further evidence in their advocacy of the practice by the explosive growth in the it sector in the U.S., even while jobs were being outsourced overseas. This suggests outsourcing created a win-win situation for all industries, even the industry where the outsourcing was taking place. However, the question remains as to whether outsourcing benefits all sectors of the U.S. workforce in an equitable fashion. Within the U.S., after the recession, the bulk of jobs lost were in the manufacturing sectors of the economy for individuals without a college education. Manufacturing jobs in the U.S. were more likely to be unionized, skilled, and to pay better than service jobs a high school employee might find at Wal-Mart. White collar workers might benefit from outsourcing, as their business sectors expand and they pay for cheaper computers as consumers. Blue collar workers often see their jobs lost, and are shifted to poorer-paying service-based jobs, even while the costs of goods and services decrease for all workers. However, it is possible that many of the outsourced manufacturing jobs would have been lost in the future, as technology itself, through automation, assumes many of the functions of jobs that formerly were the core of the American workforce. While there is no easy solution to the problem of the loss of American manufacturing jobs, the current situation underlines the need to mandate a livable minimum wage for all workers and the need for guaranteed healthcare benefits for workers. This would ensure that existing low-wage jobs within the U.S. provide adequate support for individuals in such occupations. Providing guaranteed healthcare for all U.S. citizens would reduce the incentive to outsource jobs in the first place, given that one of the attractions of manufacturing in other nations is the lack of a need to provide health insurance and other benefits for workers in nations where it is state-supplied.