How did Outsourcing Jobs to Foreign Countries all Begin?

Question

This is really bugging me, I really don't really understand how this all got started. Why do they keep it up? Why don't they stop? What is hurting us so badly about it? Where are they trying to go with this? What is the main point? And do you think they should keep it up? Why? Do you think they will keep it going? Why? Where do you think it will be in the next five years? Why? I'm really flustered about this whole thing, so if anyone, and everyone... Please help! I would like your input.
Thanks

Answer 1

It began when Regan was President, and a few companies petitioned to be able to release their employees with less than six weeks notice, as required by the unions. Compaines move their jobs to foreign countries because they're too cheap to continue to give people the comfortable pay that was once standard in this country when you had a factory job.
So to answer most of your questions it's all about money. If you can't make a decent wage, you can't afford to buy things, .... and it's a big mess.

Answer 2

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Answer 3

How this all got started.

Old outsourcing: Centuries back outsourcing had started when men were hunting and women were taking care of family.Both jobs being important they were outsourced within family/tribes to let the best person do the job

21st centuring outsourcing:I dont think no one will be able to saw exact name,time and place it happened but in my opinion the following added to the major chunck of today's outsourcing
1.Communication eqiupments
2.Computing equipment
3.Transportation of cargo and goods
4.Internet

Why do they keep it up?
If your question is about 'offshore outsourcing' a.ka. jobs moving to asia it is because of big and small corporates in US and Europe continue to send more jobs to asia or other parts of world to make it cheaper for customers and make more profit for shareholders

Note:Chinese,Indians and other countries in Asia dont have a clue why they are getting jobs.They respond to the corporates from other 'rich countries'



Why don't they stop?
Money!. Executives want to make products cheaper and compete based on price ( i wouldnt say quality) and make more profits for their companies and bigger bonuses for themselves

What is hurting us so badly about it?
Americans and Europeans are forced to think about '21st century' jobs and work on those which cannot be transferred over a wire

Example:If you want to live in a home you need to rent an apartment/house .This never will be an outsourcing candidate

It is hurting us because we were not prepared for it. Our educational system needs an overhaul to make sure the jobs done in U.S and Europe must be 'non outsourcable'

Where are they trying to go with this?
They want anything that can be sent over wire and can be done cheaper in any part of the world to do it.
Americans and Europeans will be inventors and designers while other country people will be doing the work .Not to say other countries are not capable but that is the 'intent'

What is the main point?
It is a global village. The technology advancements are is making all these possible.

And do you think they should keep it up? Why?
I dont decide for companies in U.S and Europe but i thing this should keep going up because we eventually as human race might be able to benifit out of innovations from U.S and Europe

Do you think they will keep it going? Why?
sure will. Like i said money

Where do you think it will be in the next five years? Why?
Next five years you will see more companies attempting to do this and a lot of lessons will be learnt. Eventually we will be able to figure out what to outsource and what cannot be

Answer 4

There are all kinds of jobs that cannot be outsourced. All construction jobs. Farming jobs. Equipment servicing, copier, ATM's, factory equipment. Auto mechanic are just a few.
What is happening today is those jobs are being filled by recruited legal immigrants and illegals immigrants for hard dirty jobs who are quite willing to work for less because their less is way more then they could earn in their home country.

Answer 5

As international barriers to everything starts coming down, and that includes the movement of people, goods and services, automatically there will be a flow from higher to lower levels.

So its cheaper in dollar terms to hire Indians, Chinese or people from Philipines, to perform the same job, at roughly equivalent performance levels.

As someone said, its all about money, and greed. If American corporate honchos and American shareholders werent worried about raking in that extra million, then Americans would still have all those jobs.

Sometime in the near future, I am sure an American company will stand up and say that they dont want to make extra money by selling out American jobs. They will reinvent themselves to face competition, by cutting top salaries, not people at the lower end of the company totem pole. They will become more efficient, by reducing wastages and by working together as a team.

That will surely be the day!

Answer 6

Well. one thing for sure, when I call for tech help I would love to be able to understand the technician. And if anyone calls me prejudiced they can take a flyin jump at a rolling donut. I just want help not to keep asking for constant repeats.
They're either working for cheap, or we don't have enough entry level techs.
As for outsourcing I already have seen trained medical and legal friends laid off when replaced by personnel in India. Cheaper. But I didn't see my medical or legal bills drop at all!

Answer 7

A large part of their success, specially India, is due to outsourcing by the United States. During the 1980's and 1990's companies spent huge sums of money laying fiber optic cable under the Atlantic Ocean and elsewhere. They anticipated huge demands for broadband. The demands never quite materialized, and countries like India took advantage of very cheap international communications to set up call centers to handle a range of services from tech support, to accounting to data storage and tedious programming. Given their cheaper labor rates, it made sense for American companies to outsource work to them. India prepared for all of this because they anticipated it and had trained huge numbers of scientist and engineers in comparison to the U.S. An example of the result of all of this is the fact that in 2005, there were over 245,000 Indians answering phones from all over the world or dialing out to solicit people for credit cards or cell phone bargains or overdue bills! Bangalor is one of the cities that has flourished from this new economy. The Indians are taking English courses, including accents and regional speech. Soon, you won't be able to tell that you are talking to an Indian. Right now there is a fast food restaurant in Colorado that is routing drive-up orders to a call center in India that processes the order and sends it back to the kitchen. This cuts about 15 seconds from the time it takes to drive up to the time you leave with your order! The 15 seconds translates to big money for the restaurant.

Answer 8

The technical reason for answering services was probably the construction of fiber optic cables for telephone expansion.
But this is really in lockstep with another theory--The wealthy owners of American companies sat around a discussion table trying to resolve the problem of the middle class. How to get rid of. An up and coming marketing junior suggested sending all the manual work offshore. his would eliminate the American workers and with no salaries, eventually the merchant classes would go under as well. No more middle class. All Lords and serfs (and eventually a third class-slaves).

Answer 9

It is not just low skill jobs that are being outsourced. I know of a few large corporations that have recently opened extremely large research facilities in China. These corporations are recruiting chinese nationals at universities to fill these labs, all the while not hiring American born scientists because the US research facilities are either stagnant or shrinking.

What scares me the most is that one of these companies has many government military contracts. How much of our national security is going to depend on research conducted in china?

I have no answers on how to stop it.

Answer 10

There is a simple answer ~ profit and greed. The last time I called my credit card company with a question, I spoke to someone in India. He was nice and spoke English, but the credit card company is paying him probably less than 1/3 of what they would need to pay someone in the U.S. to do the same thing. This erodes American jobs - but many big companies are doing it. I would like to see a company stand up and say that they support American jobs. I would be willing to pay a little more knowing that I am not subsidizing someone in another country when there are people in the U.S. that need jobs. To answer your other question, I think this will keep going because companies want to make money...which is not a bad concept by itself, but there should be respect for the American worker.