Economic Affects Of Outsourcing Essay

929 WordsNov 8, 20084 Pages
Oil prices rising to $4.00 a gallon isn’t the only economic dispute that U.S citizens are concerned about. Offshore outsourcing has become another controversial topic in the world of economics. Many American Companies are moving over seas to avoid government intervention and increase gross income. It is estimated that the outsourcing market will increase tremendously in the next couple of years. Companies are moving to countries such as India, and China where salary wages and taxes are reduced dramatically, increasing the companies profit. The over all quality of customer satisfaction also improves, which in return makes Americans spend more money. There are many advantages to outsourcing which appears like a substantial idea for American companies and the U.S economy, however the disadvantages might outweigh the advantages. In the long run weather most economist believe it is affecting the U.S economy in a positive way it might be the justification to why Americans are losing there jobs. There are many logical reasons why companies move overseas. India is emerging as a global brand when it comes to a better quality which is seen in manufacturing. India is a leading market for call center and IT outsourcing, has high tech facilities and good infrastructure. Also many are bilingual in English and the workforce provides the good quality voice based services for tremendously low costs results in huge savings for companies. This is the reason why most companies outsource to India. China is also rapidly developing as one of the world's leading suppliers of offshore software outsourcing. Although, India at this moment is the world leader in the software outsourcing industry, China will out due India and become the next leading competitor in software outsourcing. It is predicted that China will emerge as one of the top three countries for overseas software outsourcing

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