Outstanding Outsourcing Essay example -- Essays, Papers, Globalization

Outstanding Outsourcing â€Å"It (outsourcing) is not a our father’s traditional foreign trade. Goods are not being traded. Offshore production is not a case of US making good X and trading it (to another country) for good Y. It is a case of the US ceasing to make X in the US and making it (in another country) instead† (â€Å"Outsourcing champs say India critical to their success†). This quote leads to the differences between outsourcing and trade. Trade is a matter that had threatened the unskilled people in the labor force, which encouraged many of them to learn some sort of skill. Unlike trade, however, outsourcing is a threat to skilled workers. It is true that outsourcing had been around for many years and that it is no new matter. Yet outsourcing has gained more attention than ever because of all the recent layoffs and cost-cuttings that the U.S. economy has been suffering through. The option that American companies, specifically the software and IT sectors, have turned t o is outsourcing to the Third World countries such as India. Although companies benefit from such activities, do the skilled workers of the U.S. share the same fate? How does the Leak, Match, Trap Theory apply to this situation and can it help predict the outcome? And is India affected by the U.S. outsourcing? The U.S. is better at providing services. Service workers, such as the computer programmers and electrical engineers, really have no worries about trade and are rather immune to it. In spite of that, outsourcing is like a virus to them. It started with the recession that was gradually creeping up on to the U.S. economy as unemployment was beginning to rise in the late 1990’s. September 11, 2001 only made the situation worse by adding more s... ... expansion spree in India†. India Abroad (International Weekly Newspaper). April 23, 2004. Gumpert, David E. â€Å"Misadventures in Indian Outsourcing†. http://www.businessweek.com:/print/smallbiz/content/apr2004/sb2004041_5674.htm?sb April 1, 2004. Irwin, Douglas A. Free Trade Under Fire. Princeton University Press: Princeton, New Jersey. 2003. Luckovich, Mike for the comic strip on the cover sheet. THE DENVER POST. February 21, 2004. McKay, Jim. â€Å"Why did jobs go? Look in Bangalore†. Pittsburgh Post-Gazette. http://www.post-gazette.com/pg/04081/288539.stm March 21, 2004. â€Å"Outsourcing champs say India critical to their success†. The Economic Times. http://economictimes.indiatimes.com/articleshow/msid-514534,prtpage-1.cms February 23,2004. â€Å"Outsourcing good for US economy†. http://www.rediff.com/money/2004/mar/31bpol.htm March31,2004.