does anyone know about the negative effects of outsourcing jobs to foreign countries?

Answer 1

It seems that everyone points to the language barrier as being the biggest negative effect of outsourcing. True, that is a hurdle, but it's a hurdle that companies are forced to take because of the cheap labor costs in other countries. Instead, I would say the biggest negative effect is reducing any one countries competitive edge in the global market. By outsourcing jobs, you are teaching people in places like India and China skills to succeed in your company. However, these skills aren't usually company-specific. So, for example, in China, after the U.S. and Japan outsourced cell phone manufacturing jobs to China, the cell phone market in China boomed. Except this boom wasn't driven by U.S.-controlled or Japanese-controlled companies. Instead, it was driven by these workers, taught by U.S. companies, who left the company to teach others the basic skills in making cell phones. As a result, not only have the U.S. and Japan lost the competitive advantage they had, but they have also created new competitors. Globalization is crucial to more efficient markets, but for domestic producers, it means more competition.

Answer 2

I work in the mortgage lending industry. We out sourced our loan submissions to India, this was a disaster in several ways. Main problems were due to the language barrier. If they do not understand our language how in the world are they able to input the information needed to submit a loan application??? Second problem was due to the communication barrier when we needed to contact someone to correct this. How are we supposed to tell them what to fix (even if they are fluent in English) if we still can't understand each other. Combine both issues with the time lost trying to communicate these issues to be corrected and you have lost customers at that point because it takes your company 72 hours to submit something for approval. With all that time wasted and customers lost I did not see why they continued to do so. I left that company and good thing, 8 months and two layoffs later they are hurting going from the top to the bottom of the chain, while I now work for the top.

Answer 3

When Americans outsource jobs to India it seems it doesn't work so well because Indians don't speak American but English.
It doesn't works quite as bad when the UK outsources jobs to India although there are always the whingeying northeners who complain but again half of the time it's them who can't speak english :-)

Answer 4

Loss of American positions
Big corporate money going to other countries instead of being spent here
Extreme Westernization of these countries

There are positives like income for Indians who appreciate the positions, and work for less, also keeping prices lower for goods because labor is cheaper.

It's very complicated and definitely a double-edged sword.

Answer 5

back interior the Oklahoma city bomber era, terrorists have been good ol'american boys. Now that they are outsourced to Iraq, fewer american civilians get killed. Outsourcing could be a outstanding element!

Answer 6

One huge factor is coporate moral. If some positions are eliminated and some not the people still working at the company will have mixed feelings about their future employment at said company.

Answer 7

wipe out a lot of good paying jobs. It covers the whole spectrum: engineering, manufacturing, customer service, accountant, technical jobs. soon maybe doctors level next

Answer 8

increase local unemployment
lower than competitive salary
lousy customer service with lousy English

Answer 9

Rotten customer service.