Outsourcing
Outsourcing
Former U.S. Presidential candidate Ross Perot once warned of the U.S. entry into the North American Free Trade Agreement as "a great sucking sound" as U.S. jobs "run" to Mexico. Many Americans feared that cheap labor in Mexico would cause many Americans to lose their jobs as U.S. companies could find cheaper labor south of the border. In the ten years since the beginning of NAFTA, the U.S. job market has remained strong. The types of jobs may have changed to a certain degree, but the number of jobs has only increased despite the fears of many. Today, many people are worried about the effects of the outsourcing of software upon U.S. jobs. Many people fear the "great sucking sound" as software jobs are outsourced to cheaper labor in foreign countries, such as India. U.S. legislators have faced the issue and are trying to reduce the incentives of companies to hire workers abroad. There are many fears and uncertainties about globalization and the new global economy as many people fear change and competition from cheaper foreign labor. Are these fears justified? Is the American job market going to collapse? In the words of Ed Yourdon, has the "decline and fall of the American programmer? 4 Also, is it ethical to outsource software for cheaper labor?
In recent years, especially with the rise of the World Wide Web, there has been a steady increase in a more global economy. New technology has made the world more connected. It is much easier and less costly to communicate and interact with people around the world. Telecommunications makes it more possible to work from a remote location rather than working in a specific building. Cellular phones, laptops, and wireless internet make it much more possible to work from just about anywhere.
The rise of the global economy has also led to the rise of employment outsourcing. Labor is being treated much like goods. Employers are seeking to lower costs and increase profits. As with the practice of
Former U.S. Presidential candidate Ross Perot once warned of the U.S. entry into the North American Free Trade Agreement as "a great sucking sound" as U.S. jobs "run" to Mexico. Many Americans feared that cheap labor in Mexico would cause many Americans to lose their jobs as U.S. companies could find cheaper labor south of the border. In the ten years since the beginning of NAFTA, the U.S. job market has remained strong. The types of jobs may have changed to a certain degree, but the number of jobs has only increased despite the fears of many. Today, many people are worried about the effects of the outsourcing of software upon U.S. jobs. Many people fear the "great sucking sound" as software jobs are outsourced to cheaper labor in foreign countries, such as India. U.S. legislators have faced the issue and are trying to reduce the incentives of companies to hire workers abroad. There are many fears and uncertainties about globalization and the new global economy as many people fear change and competition from cheaper foreign labor. Are these fears justified? Is the American job market going to collapse? In the words of Ed Yourdon, has the "decline and fall of the American programmer? 4 Also, is it ethical to outsource software for cheaper labor?
In recent years, especially with the rise of the World Wide Web, there has been a steady increase in a more global economy. New technology has made the world more connected. It is much easier and less costly to communicate and interact with people around the world. Telecommunications makes it more possible to work from a remote location rather than working in a specific building. Cellular phones, laptops, and wireless internet make it much more possible to work from just about anywhere.
The rise of the global economy has also led to the rise of employment outsourcing. Labor is being treated much like goods. Employers are seeking to lower costs and increase profits. As with the practice of
Cited: 1. Gary Burtless, Robert Z. Lawrence, Robert E. Litan, Robert J. Shapiro, "Openness and Jobs", 1998, The Brookings Institution, http://brookings.nap.edu/books/0815711891/html/44.html>. 2. "The North American Free Trade Agreement (NAFTA)", 2011,, <http://www.fas.usda.gov/itp/Policy/NAFTA/nafta.html>. 3. "Outsourcing Knowledge Center" 2011, Computer World, 1 Mar. 2011, <http://www.computerworld.com/managementtopics/outsourcing?from=left>. 4. Roger S. Pressman, Software Engineering: A Practitioner 's Approach (McGraw Hill, New York, 2008), 5. 5. "Software Outsourcing India", 2003, IT Outsourcing India, 27 Feb. 2004, <http://itoutsourcingindia.com/>. 6. Paul Halsall, "Adam Smith: The Principle of the Mercantile System, 1776", 2010, Fordham University, <http://www.fordham.edu/halsall/mod/1776asmith-mercsys.html>. 7. N. Gregory Mankiw, Principles of Microeconomics (The Dryden Press, Orlando, 2006), 50-55. 8. "Outsourcing Issues", 2009, Outsourcing Central, 27, Feb. 2009, <http://www.e-zest.net/Outsourcing_Central/outsourcing_issues.html>.