Making sense of outsourcing and offshoring

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Outsorucing is different then offshoring

Outsourcing can be local companies working for larger companies. Jobs move from the parent company to the outsourcing company usually a little lose of wages but not too many jobs lost. Offshoring is basicly taking jobs overseas to someplace where the standard of living is anywhere from half to 10% of ours. Offshoring only benefits the company who is doing it, that countries elite business class and the pols. As soon as that companies labour pool realizes they are underpaid and start demanding higher wages
then the jobs are moved to another country (jobs are already moving from india to china do to rising wages in India). So all the supposed wealth moves on while the same greedy business (stockholders who assume they can become millionaires overnight) people become richer and most of the worlds workers get paid less. To have true global trade that works countries have to be more on equal footing (see Japan, Europe). As your first example those are natural resources which is compeletly different issue. Look at the situation in the middle east they have more oil then other places, which we need and they can raise and lower production at will causing us to pay more and slow down productivity or cause higher costs for goods and services. What makes this different is not the shortage of labour, or reeducating factory works with high school diplomas. These are people that have BS or high degrees. They have little room to up in terms of education or skills. Just because a programer might have a masters or PHD give them the skills to become a doctor of medicine or a lawyer you can retrain them to be x-ray techs that make half of their current salary or car mech. Outsourcing is actually bad for established country, it improves 3rd world countries a little (fixing the courpt gov'ts in must 3rd world countries would improve their standard of living more the then anything else) and it creates extremely rich companies and executives.

Posted by: xshakes   Posted on: 03/25/04 You are currently: a Guest | Members login | Terms of Use

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