As our world expands so does our workforce. Companies are starting to expand globally to help with the cost of production and labor by offshoring their business. As events occur in our world “flatteners” seem to pop up. There are ten major “flattener” that have leveled the playing field. But the one I am going to focus on is offshoring.
Wikipedia defines offshoring as the movement of a business process done at a company in one country to the same or another company in another different country. Offshoring dates all the way back to after the Revolutionary War when America needed to create its own manufacturing infrastructure because of the high cost of imported goods. So the Colonial America copied the English products and industrial machinery. Though as offshoring grew internationally America seemed to fall behind, not paying much attention to what was happening around them. U.S. factories were starting to close by the 1990’s and the offshoring took off globally. The concept of offshoring is a fast moving movement that companies are starting to catch on to. Companies are starting to offer transfer programs and call center jobs offshore. But one of the biggest movement offshoring has caused is the expansion of the IT industry. It has allowed more companies to be able to offshore their production where labor and production is cheaper. Offshoring offers benefits like it creates resources for growth, it encourages operational flexibility, it reduces operational costs, it creates a new market opportunity, its businesses focus on core functions, and its risk sharing. Offshoring has affected the American economy the most with companies moving job opportunities to low cost countries. Offshoring has brought up other low cost countries such as China and India and bringing more jobs to their area. Offshoring has also brought low wages in America due to the low cost countries do the exact same jobs for lower pay. America is having to step up to the plate and bring more of game to the positions. Offshoring is affecting the economy globally and is controversial. It affects every part of business from manufacturing through design, software development, financial control, logistic management, customer services and sales. If countries aren’t changing with the change then their economy might could come to a fall. Right now, the countries that are gaining from offshoring is India, and China. The countries that are falling behind is America and Europe. Companies are wanting more profitable gain to their business than they are wanting loses. So they are taking their employment opportunities where the labor is cheaper and the employees willing to work harder for the little money that they do earn.
Offshoring affects my family and me by having to accept positions for a lower wage than we normally would take. We have to make sure that we have well educated background because we have more competition than we have had in the past. Offshoring bring challenges to