FINAL PAPER com120 - Outsourcing i Outsourcing: Americas...

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Outsourcing i Outsourcing: Americas Fight Against Big Business David Goldstein Com120 Professor Richard Franchetti October 29 th , 2006
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Outsourcing 1 Beginning in the 1990’s, a business phenomenon occurred that would change hundreds of thousands of lives forever. Today we refer to this phenomenon as job outsourcing to overseas countries, commonly called off shoring. Large businesses have made millions of dollars on this business act, and left millions of Americans without jobs. While large companies may benefit from outsourcing jobs overseas, the effect on the workers who have lost their jobs is devastating. This paper will go in detail about what outsourcing is, what politicians and state government say about it, and what the effects are on people who have lost their job to outsourcing. Wikipedia Encyclopedia defines outsourcing as “the delegation of non-core operations or jobs from internal production within a business to an external entity (such as a subcontractor) that specializes in that operation. Outsourcing is a business decision that is often made to lower costs or focus on competencies.” As for some people, this might sum up what outsourcing is, but for others this is a vague definition. To say in laymens terms, outsourcing occurs when a big business gives tasks to smaller businesses that will save them money by doing something they could have done themselves. This sounds like a good idea, right? The problem with this is that most times when the big business sends jobs to a little business, the little business is in a different country. This leads to massive lay offs for American workers who could have done the same job, but for a little more money. According to “Techs Unite” a project of the Communication Workers of America, from January 1 st , 2000 to October 1 st 2000 the estimated American jobs outsourced is 469,996. In addition to that number, the number of possible jobs lost to offshoring is 204,587. This is a gigantic number for American workers.We already know why businesses outsource, but
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Outsourcing 2 these numbers lead to the question of who is outsourcing? Tech’s Unite gives the top 10 companies that outsource. The number one outsourcer in the United States is the company EDS, at an estimated 20,000 jobs offshored. Next is General Electric at 14,000, followed by Convergys at 14,000 also. These are not the only companies offshoring. Other companies such as Accenture, Computer Sciences Corp, MCI, Standard Chartered, Dell, and Delta Airlines are all guilty of taking thousands of jobs away from American people. This may just sound like a number to some people, but the thousands of personal stories that go along with these numbers are devistating. Nobody can explain outsourcing and its effects better than people who have been victim
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FINAL PAPER com120 - Outsourcing i Outsourcing: Americas...

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