Friday, May 13, 2011

Blog Entry 18 Outsourcing Labor


http://empowerednews.net/outsourcing-by-u-s-firms-add-to-unemployment-woes/185016/

             In the picture above, hundreds of people sit in rows in front a computer with a headset on to take phone calls from around the globe. I can assume that this is an outsourcing labor firm. Our technology today makes everything more convenient, easier, and faster. Many big American firms have set their working place outside the U.S. because a lot of jobs now are through the internet. People can connect to the whole world in one place. If you are online in India, you could connect with people in the U.S. As we know, American labor cost is one of the highest in the world. Today outsourcing labor has grown larger and faster since other countries' labor are much cheaper than the U.S. Through the film of  "Sleep Dealer," we can understand why American companies like to hire Mexicans because they do hard jobs for small earnings per day. Since Mexico is a poor country, the U.S. currency is a big amount for their people. That's why so many Mexicans cross the border to U.S. They work in America so that they can support their families. Technology is also another example for outsourcing labor outside the U.S. I remember three years ago, I had a problem with the Dell computer company for a money refund since I did not receive the laptop I had ordered. I made a lot of  phone calls but all answers were always from India, causing the problem to be extended over a long period of time. Technology development has changed the whole world including our labor resources. Many companies need to make profits by reducing their costs, especially the expensive labor cost. But the problem is when companies move their working place to another countries, our nation has less jobs for our own people. That is one of the reasons why the unemployment rate continues to stay high and why we are still in a difficult economic situation.               

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