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Posted on May 3rd, 2014, by


Today, outsourcing affects consistently the economic development of the US and the job market in particular. In the contemporary business environment, the outsourcing is widely-spread, especially among companies operating internationally. The use of the outsourcing contributes to the improvement of the organizational performance through the optimization of organizational expenses and cost saving. On the other hand, the outsourcing can raise a number of important social issues. In this respect, the risk of job cuts and increasing unemployment is particularly significant issue, which affects not only employees, but also labor unions and the entire organization. As the matter of fact, the outsourcing may be profitable and economically justified for the company but, simultaneously, it increases the risk of internal conflicts within the organization because of the increasing opposition from the part of employees and their uncertainty in their future in the company. As a result, along with positive effects, such as cost saving, the outsourcing can raise significant problems, such as internal conflicts and deterioration of productivity and efficiency of work of employees. In this regard, the job market of the US suffers from the loss of jobs which are outsourced abroad, in such countries as China, while American employees have to find new jobs or get unemployed.

The importance of outsourcing in terms of International Relations Theory

The emergence of outsourcing jobs correlates closely to the International Relations Theory because outsourcing implies the close cooperation between different countries. In fact, job outsourcing means the further progress of the division of labor, when some jobs are transferred from the US to other countries, whereas the US develops new jobs and creates new jobs for employees, whose jobs are transferred. In this regard, the International Relations Theory holds the premise that international relations develop progressively and the cooperation between countries grows stronger (Hira & Hira, 138). As a result, the economic integration leads to outsourcing jobs from the US and other developed countries to less developed countries, where the costs of the labor force are lower compared to well-developed countries.

At the same time, the International Relations Theory stresses the division of labor as an essential element of international relations. The division of labor means that the US, for instance, keeps progressing and introducing new jobs, especially in the field of high technologies, whereas low- and semi-qualified jobs are outsourced to other countries, where the labor force is cheaper and companies do not need to employ professionals with the high qualification. Therefore, the development of outsourcing is a natural process of the economic and technological development of the world, when the free movement of capital stimulates outsourcing because companies can outsource jobs to other countries to save costs.

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