Thursday, April 30, 2009

Outsourcing

For additional background information on outsourcing, read this article from HowStuffWorks.com, including a great section on the Economics of Outsourcing. In an Opinion article in The New York Times, Thomas Friedman describes a visit to a call center in Bangalore during which he asked the question: "How can it be good for America to have all these Indians doing our white-collar jobs?" Read the article and find out the answer to Friedman's question. Share your reaction to this view of the global economy and outsourcing.

4 comments:

  1. I have often wondered if we are setting up all the students who major in computer/technology because I worried that there wouldn't be the tech jobs that could be done in other countries, and I never thought of the following;

    "Well, he answered patiently, "look around this office." All the computers are from Compaq. The basic software is from Microsoft. The phones are from Lucent. The air-conditioning is by Carrier, and even the bottled water is by Coke, because when it comes to drinking water in India, people want a trusted brand. On top of all this, says Mr. Nagarajan, 90 percent of the shares in 24/7 are owned by U.S. investors. This explains why, although the U.S. has lost some service jobs to India, total exports from U.S. companies to India have grown from $2.5 billion in 1990 to $4.1 billion in 2002. What goes around comes around, and also benefits Americans"

    yet I do wonder that the quote refers to "American Investors" in companies like Coke, but it doesn't mean the average american workers are benefiting. While I certainly understand the need for participation in global economy, the fact that China is bailing us out by owning most of our banks is frightening!

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  2. Kathy Pilling-WhitneyMay 3, 2009 at 5:04 PM

    With the outsourcing of American jobs we also see the use of American products. The present world economic problems are both the product of problems with how we invest, but are also part of the natural ebb and flow of economics. This blip in prosperity is part of a natural evolution in products and production. How we react to this will determine how great we really are for the future economy for our children. Pink's book sets a framework for a new view of how to continue to be who we are in a new way. This new way includes both a space for the global economy and a re-awakening and new focus for our local economy.

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  3. I enjoyed the article on how outsourcing works because it supported my belief that America benefits from outsourcing. My concern is that many people don't like outsourcing because it takes jobs away from Americans, yet as Americans we want to pay less for more. Not only that but we want it all now. The article in the New York Times is old news. The question continues to be if we don't like outsourcing what are we doing about it. The global economy is here to stay.

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  4. I found the article very enlightening. It helped me to truly understand just how much of the American economy relies on outsourcing. As Peg mentions there is a great deal of fear about outsourcing in American as most view it as taking aways jobs from Americans. However, my brother is a tool and dye maker and without outsourcing he probably would have lost his job this year.

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