Globalization Outsourcing and Offshoring Software...

In recent years off shoring of high paying service jobs to counties such as India have received a lot of media attention. What are the long and short-term effects of these changes in terms of employment, income distribution and economic growth? Is the outsourcing of services a different phenomenon than simply importing steel? Economic theory and past history point to the fact the trade provides net economic gains but if it also redistributes wealth, affects worker employment the short run and wages in the long run. It is easy to find literature that tells of the growth of the American economy with the increased use of outsourcing. It is however a different story when one asks the question who is reaping the benefit of the new lower†¦show more content†¦In the past three years it is estimated that off shoring accounted about .5 million people laid off by Goldman Sachs. Forrester projects that the number of outsourced jobs will grow to from about 400,000 to 3.3 million by 2015. That averages 250,000 layoffs per year or less than two percent other approximately 15 million Americans who involuntarily lose their each year. Up to 14 million Americans work in occupations susiptable to off shoring. Occupations such as financial analysts, medical technicians, paralegals and computer and math professiona ls according to a recent study at UC Berkeley by Ashok Bardhan and Cynthia Kroll. Gathering information about the extent of outsourcing is extremely difficult. The Department of Labor relies on employers to voluntarily report in surveys whether they have had any layoffs due to off shoring. Employers are understandably reluctant to be forthcoming with such information. The Brookings Institute held a Data Workshop to discuss problems gathering data on this topic. With the current surveying methods the potential magnitude in underestimating the import levels and overseas job displacement is significant was one conclusion of the workshop. Off shoring should result in net gains for the US. A study by the McKinsey consulting firm estimated the net savings of moving some jobs off shore is about 50 percent. The wage differential between US and foreignShow MoreRelatedEffects of Globalization: Globalization and the Effects on the United States Economy1713 Words   |  7 PagesGlobalization has affected every aspect of the business community in one way or another. Globalization in a simple sense is a business’s movement from one country to another. This is done for a number of reasons; amount of readily available resources, labor market, increased number of customers, and to ultimately become more profitable. There is a decisive advantage for a business to move overseas, but there are a number of drawbacks globalization creates on the local economy. When businessesRead MoreInterpreting Concepts of The World Is Flat Essay1782 Words   |  8 Pagesallows one to reach far away opportunities. The three Globalizations contrast in many ways. Globalization 1.0, lasting from 1492 to about 1800, was about countries and muscles. Its force driving the process of global flattening was the amount of muscle your country had. The key agent of change in Globalization 2.0, which lasted from 1800 to 2000, was the power of multinational companies, which went global for markets and labor. Globalization 3.0, beginning in 2000 flattened the playing field evenRead MoreRole of Ict in Flattening the World1404 Words   |  6 Pagestime to time by reducing the physical, economical and socio-political barriers thus turning the world into what scholars refer to as a global village. We cannot talk about ICT and its role in flattening of the world without touching on globalization. Globalization in this case refers to the increasing free flow of readily available technology, ideas, market and people. In the book â€Å"The World is Flat† by Thomas Friedman he argues that ICT and global in tegration have enables countries like China andRead MoreImpact Of Globalization On The United States1454 Words   |  6 PagesGlobalization is an extremely relevant concept in regards to the current shape of the world. Through globalization, ideas are shared across cultures leading to innovations in several departments. I would like to give an overall view and perspective of the impact of globalization on the United States from a macro look at how globalization is now shaping America. Likewise, I will discuss in more detail how globalization has impacted the United States as it relates to technology, trade, transportationRead MoreOutsourcing : Outsourcing And Outsourcing1579 Words   |  7 Pagesâ€Å"Outsourcing refers to obtaining certain services or products from a third party company, essentially sourcing something like accounting services or manufacturing of a certain input to another company. While many think outsourcing refers to using a service provider in another (usuall y cheaper) country that is not necessarily the case. Outsourcing can be done to a company that is located anywhere, the location isn’t important.† (Offshoring vs. Outsourcing, n.d.). There are many reason a businessRead MoreWorld Is Flat Essay1784 Words   |  8 Pagesallows one to reach far away opportunities. The three Globalizations contrast in many ways. Globalization 1.0, lasting from 1492 to about 1800, was about countries and muscles. Its force driving the process of global flattening was the amount of muscle your country had. The key agent of change in Globalization 2.0, which lasted from 1800 to 2000, was the power of multinational companies, which went global for markets and labor. Globalization 3.0, beginning in 2000 flattened the playing field evenRead MoreFirst Social Impact On Changing Career Models1453 Words   |  6 Pagesupward, linear series through one or two firms or consist stable employment in one progression. Terjesen (2006) claims that globalization and technology have changed the essence of careers and of the psychological employment agreement which was initially regarded as exchange of employee loyalty for job security, and this contract has moreover been damaged by the pressure of outsourcing, particularly when employees are required to train individuals from overseas who are possibly take their jobs. A studyRead MoreOutsourcing and the US Economy Essay2349 Words   |  10 PagesOutsourcing – Dont Get Bangalored? As the world has gotten â€Å"smaller† in terms of trade, outsourcing has become a hot topic in much political and economic debate in the United States. An Associated Press-Ipsos poll in May 2004, found that 69 per cent of Americans thought that outsourcing hurts the US economy while only 17 per cent thought it helped . President Bush’s chief economic advisor Greg Mankiw has stated â€Å"outsourcing†¦is something that we should realize is probably a plus for the economyRead MoreThe Pros and Cons of Globalization Essays1584 Words   |  7 Pagesinterdependent world economy is the outcome of the process of Globalization. Various definitions of Globalization are available. As per Block (2004), in his research paper, has defined globalization as â€Å"Intensification of world-wide social relationships which link distant localities in such a way that local happenings are shaped by distant events and, in turn, distant events are shaped by local happenings.† The IMF (2008) claims that globalization is a result of advancement in technologies and modernizationRead MoreEssay on World is Flat1633 Words   |  7 Pages After reading The World is Flat, I would have to say that I believe the world is flat as according to the author Thomas L. Friedman. Globalization has taken the world by storm and everything that we do in this world is done with technology. Ever since the world was introduced to the World Wide Web in 1993, we have spiraled in a new direction at a rapid speed, and we have yet to slow down. Technology has advanced so much that nowadays we do not need actual people to run a business and at that