It is usually reported that the U.S. is losing jobs to other countries like India and China for certain manufacturing and service jobs. However, recent reports have come out of India regarding their ‘outsourcing’ of outsourced jobs. This is unexpected at this point, but not unprecedented. When a cost of production become just slightly more expensive than it’s alternative, the incentive exists to switch means of production.
WiPro is one of the largest Indian companies, and they are one of the leaders of the movement of outsourcing to begin with. By studying the experience of firms who specialize in outsourcing we can improve our understanding of why firms outsource jobs. Stories of job movement around the world help provide some insight.
Questions you might try to answer:
- Can you find any evidence of other companies or countries that are ‘outsourcing’ jobs that were initially outsourced?
- Explain the justification for outsourcing from the U.S. to another country.
- Why do we not outsource jobs to countries in Africa or the Caribbean?
- Examine the rationale of protecting domestic jobs by punishing firms who decide to export jobs? If outsourcing of outsourcing has occurred so quickly, what might be the impact of this type of legislation?
Remember… I would like your statements to be as subjective as possible, or in jargon terms, positive and not normative in nature. Also, remember, I want you to keep your descriptions short, basic, and related to classroom content. Read other students comments before posting, and please leave your name with your posting.