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American Jobs Leaving and Going Overseas

Updated on November 8, 2011

Outsourcing American Jobs

Outsourcing jobs has become a standard practice among American companies. The practice of outsourcing employment began over 30 years ago when manufacturing companies started to outsource assembly-line jobs to countries like China, Japan, and Taiwan. As more of those jobs left, the United States started shifting from an industrialized society to one that was service based. Now companies of this new American economy are looking to outsource many of their jobs to India. The difference though is that the manufacturing companies were outsourcing their low to semi-skilled jobs, while service based companies like Home Depot, Target, and Wal-Mart are sending white collar jobs that normally require advanced training overseas.

It is sad but true to think that a person can grow up, excel in school, and graduate from college with a degree in an advanced field...only to find that all of the jobs in that field have been sent overseas. Many people are wondering why would companies do this to their own countrymen. The reason for most companies is a financial one.

Home Depot and Target have begun outsourcing many of their support positions overseas citing that those in India will work harder for less money. There is a lot of truth to this. An information technology associate would be paid $300-$400 dollars for a job that their American counterpart would receive at least a $1000 more for.

The only company who is not outsourcing to cut cost is Wal-Mart. Wal-Mart has been sending a lot of their information technology jobs to India not so much to cut operating costs, but to get a global foot in the door in places like Bombay and New Delhi. Wal-Mart is more interested in globalizing their company; they have unofficially been looking at putting an IT center in India.

Both Home Depot and Wal-Mart have stated that they plan to create more jobs stateside by opening new locations throughout the nation. However, this leads to a new question: is it worth going to college now? The reason behind this question is that unlike the outsourcing of industrialized jobs in the 1970s and 1980s, the jobs being outsourced are ones that require specialized training and degrees. Many companies feel that India produces a larger number of college graduates than the United States does. However, what kind of message is that sending to college students here? What will happen to the college graduate with a degree in Information Systems Technology when he finds that most of the jobs in his field have been sent halfway around the world?

It is hard to answer that question. Many people with specialized degrees have taken retail management positions with the same companies that have outsourced jobs in their field. This unfortunately raises the question of whether in-store promotions are still possible if management is being hired in from the outside.

Of course the best question is with the United States in the middle of a recession, is this the right thing to be doing? The answer will vary depending on who is answering it. Many top CEO s and company presidents will praise the benefits of outsourcing jobs, while those looking to break into that field will have an entirely different view on the subject. Regardless of opinions, it looks like outsourcing is here to stay for awhile.

Outsourcing Jobs and Your Decision

India is the New Economy


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