Outsourcing in North America

What is outsourcing? The transfer of work to people in other countries

Problems with Outsourcing Moral issue ◦ Some argue that laying workers off, even for economic reasons, is morally wrong  Difficulty finding new jobs with same pay and benefits ◦ Do US companies have an obligation to keep their employees working? Economic dilemma ◦ Other countries can offer jobs at lower pay and without benefits (US can’t do that) ◦ It is cheaper to have goods made where rates are low and then transported to market than make them in the US  Consumers benefit from lower prices  Shareholders benefit from larger corporate profits Political problems ◦ Laid off workers have a lower standard of living ◦ Live off of government support through unemployment benefits

Solutions Better technology ◦ Computers and robots can help make workers more productive Educated workforce ◦ Can solve problems more quickly, have more efficient work routines and produce higher quality goods and services Person-to-Person services ◦ Some jobs just can’t be outsourced ◦ Assures that workers have jobs