Analyzing the Failing Economics of International Technology Job Markets for Canadian and American Outsourcing in Is offshore Outsourcing Worth the Loss of Its Jobs?

Analyzing the Failing Economics of International Technology Job Markets for Canadian and American Outsourcing in "Is Offshore Outsourcing Worth the loss of Its Jobs?" by Karen Gugliemo

Summary:

The article "Is Offshore Outsourcing Worth the loss of Its Jobs?" by Karen Gugliemo will divulge the foundations and history of the current economic issue of job outsourcing in Canada and America for the technology job markets. In many ways, the American and Canadian economies and the free trade aspects of job outsourcing play a large part in how large corporations can make domineering profit margins, yet are consistently outsourcing American and Canadian jobs to third world countries. The differing aspect of the global market often produce lower wages, which Canadian and American companies can utilize for their sole interest. While the job values for American citizens are much higher, Gugliemo assesses companies that seek lower wages in third world counties or within a sector of the world where America has influence. In essence, Gugliemo accurately assesses the economic failings of the global market, which in turn, affect how job outsourcing has become a modern trend in lowering product quality and the availability of jobs in the United States.

Discussion:

In Gugliemo's article, the issue of a vanishing middle class is a dangerous idea for native north American technology workers. When companies continually find that they can outsource jobs without government regulation, the country will find itself in a crisis. While the rich get richer, and the poor get poorer, where does the middle class go? Certainly, they would find themselves in the majority of the poor, which can constitute a real danger of stability in the country. Throughout history when the middle class is a missing link between the rich and the poor, civil strife will most likely ensue. Growing unemployment is also an issue in cresting economic instability, especially in the middle classes. While the government continues to claim that unemployment is being lowered, they are usually sighting jobs within the service industry. These are not real jobs, and by covering these facts up , they deny the public the reality of economic polarity and disorder. This often leads to a weakened society that cannot economically sustain itself. With many people in the service industry working two jobs, the facts of unemployment in job trends for the middle class become dire. This is the most important negative factor in outsourcing, which is growing within the American corporate hegemony of the global markets:

The reality is that offshore outsourcing is a growing trend. According to a recent study from Meta Group, the worldwide offshore outsourcing market is worth $10 billion today and will grow 20% annually through 2008. Meta also claims that offshoring growth will outpace outsourcing in general and predicts that the average enterprise will offshore 60% of application work by 2008 or 2009 (Gugliemo para.4).

These factors point a decidedly dismal economic outlook for American jobs, as they are continual being outsourced by American corporations with an exponential growth of 20% until 2008. Gugliemo also states that:

Regarding job loss, a study from the U.S.-China Economic and Security Review Commission, found that up to 406,000 U.S. jobs will be moved overseas this year. The offshore job tracker on TechsUnite.org reports that more than 259,000 jobs have been sent offshore from Jan. 1, 2000 through Oct. 12, 2004. The site also claims that 142,500 jobs have been lost as a result of offshore outsourcing during this same time frame (Gugliemo para.4).

These statistics help to understand why more and more jobs are being freely exported to cheap labor markets, and why American hegemony in the world causes this employment apparatus. The real problem here for American workers is that they are victims of this quickly changing environment, which does not allow they some job security. With many people out of work or constantly seeking jobs with lesser pay, the problem of job quality will lower the standards of living in America. This is one of the most important dangers of outsourcing that need to be addressed. By making a focus on this trend in job markets, the policy of the American government continually favors corporate demands for greater leeway in giving foreign countries these jobs. Although free trade is not a bad thing on the whole, the obvious excess of deregulation will eventually cause the economy to dwindle (Hira 45-46). If American citizens and the government do not step up and lessen the availability of these jobs overseas, the American economy will eventually fall into a third world service industry job market. This will lower the quality of living, forcing Americans to live day by day with poor wages. This is how and why the economy currently operates through the excessive greed of private corporations and their wage labor controllers to manipulate governmental free trade law in the U.S and Canada.

Gugliemo's article also discusses the economic facets of policy making, which have a major effect on job markets because of outsourcing. In many ways, these agreements