The Negative Effects of Offshoring Customer Service

The Negative Effects 1 The Negative Effects of Offshoring Customer Service Lisa Morris Com 120 December 1, 2009 Karen Halusek The Negative Effects 2 The Negative Effects of Offshoring Customer Service She is very excited. She just came home with her brand new computer. She and her husband had been saving every extra dollar for quite some time and they were finally able to purchase the computer they had been wanting. They succeeded in getting it set up and excitedly turned it on but could not seem to run it correctly. She called the toll free customer support line, confident that they would have their new computer up and running in no time. The call was answered promptly†¦show more content†¦If we cannot count on American companies to provide Americans with jobs, just whom can we count on? The unemployment rate hit 10.2% in October 2009. This is only the second time since WWII that joblessness in America has topped 10%. Certainly the use of technology to increase productivity accounts for some of the unemployment rate; however, another major factor in the high unemployment rate is compani es engaging in offshoring (â€Å"10% jobless is tougher than it used to be,† 2009, p. A7). Proponents for offshoring say that it is good for the economy. According to Alan Blinder, Professor of Economics and Public Affairs at Princeton University, as of 2004, jobs that can be offshored have seen a decrease of 13% in what employees here at home are paid to do that job. This result surprised him and other economic professionals. Blinder believes that offshoring will hurt the United States in other ways as well as lower wage levels, including higher unemployment rates and depreciated dollar levels (â€Å"Offshoring: Will Last 2-3 Decades, 30-40 Million American Jobs Lost.† 2009). It cannot possibly be good for the American economy to lose numerous jobs to overseas workers as well as seeing the value of our dollar going down along with wages. Filmmaker Greg Spotts filmed a documentary interviewing several people who have lost their jobs due to outsourcing. These displaced workers spoke to him of depression and other health problems that are setting in as well as poverty. AccordingShow MoreRelatedLesson 5 Discussion Forum : Caterpillar Inc.1451 Words   |  6 Pagesbetween two tractor companies. However, the official genesis was in 1986 when the company reorganized under the Caterpillar Inc. name. The CAT headquarters are in Peoria, Illinois. Over the years, CAT has offshored a lot of their manufacturing. Offshoring is different than outsourcing because the company still has ownership of the process. However, the location of the process is abroad. 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