Outsourcing Economics has a double meaning. First, it is a book about the economics of outsourcing. Second, it examines the way that economists have understood globalization as a pure market phenomenon, and as a result have 'outsourced' the explanation of world economic forces to other disciplines. Markets are embedded in a set of institutions - labor, government, corporate, civil society, and household - that mold the power asymmetries that influence the distribution of the gains from globalization. In this book, William Milberg and Deborah Winkler propose an institutional theory of trade and development starting with the growth of global value chains - international networks of production that have restructured the global economy and its governance over the past twenty-five years. They find that offshoring leads to greater economic insecurity in industrialized countries that lack institutions supporting workers. They also find that offshoring allows firms to reduce domestic investment and focus on finance and short-run stock movements.

This book examines the impact of outsourcing on workers and their employment conditions in the new economy. To do so, the call centre industry in Mexico City is analysed through a large number of in-depth interviews with workers and managers, available statistics and visits to leading firms in the sector. The case of call centres is paradigmatic as it is often seen as a flag-ship industry of the new economy, rapidly growing and subject to high pressures for costs reduction. The Mexican experience is crucially relevant to understand employment conditions in a weak institutional setting where labour protection is low and business competition intense. Overall, outsourcing has gained popularity as a mechanism to deal with the uncertainty of increasingly challenging business environments. Nonetheless, the practice of outsourcing also raises important concerns. This book identifies those managerial practices which have a substantial impact on workers and their employment conditions such as: job designs; customer segmentation; non-standard contracts; intensified supervision; union avoidance; limited career opportunities; and strict social divisions in the workplace. These findings also suggest that a number of practices that were common in the ‘old’ economy are still dominant in the organisation of work in the twenty-first century. The book is a useful reference for scholars and students concerned with employment and labour studies, economic development, and globalisation.

"This book discusses the considerations and implications surrounding the outsourcing and offshoring of professional services, such as software development computer-aided design, and healthcare, from multiple global perspectives. This book, offers industry professionals, policymakers, students, and educators with a balance between a broad overview and detailed analysis of offshore outsourcing, would make an invaluable addition to any reference library"--Provided by publisher.

In the twentieth century, large companies employing many workers formed the bedrock of the U.S. economy. Today, on the list of big business's priorities, sustaining the employer-worker relationship ranks far below building a devoted customer base and delivering value to investors. As David Weil's groundbreaking analysis shows, large corporations have shed their role as direct employers of the people responsible for their products, in favor of outsourcing work to small companies that compete fiercely with one another. The result has been declining wages, eroding benefits, inadequate health and safety protections, and ever-widening income inequality. From the perspectives of CEOs and investors, fissuring--splitting off functions that were once managed internally--has been phenomenally successful. Despite giving up direct control to subcontractors and franchises, these large companies have figured out how to maintain the quality of brand-name products and services, without the cost of maintaining an expensive workforce. But from the perspective of workers, this strategy has meant stagnation in wages and benefits and a lower standard of living. Weil proposes ways to modernize regulatory policies so that employers can meet their obligations to workers while allowing companies to keep the beneficial aspects of this business strategy.

One of the most controversial topics in the news is the outsourcing of American jobs to other countries. Outsourced jobs have extended well beyond the manufacturing sector to include white-collar professionals, particularly in information technology, financial services, and customer service. Outsourcing America reveals just how much outsourcing is taking place, what its impact has been and will continue to be, and what can be done about the loss of jobs. More than an exposé, Outsourcing America shows how offshoring is part of the historical economic shift toward globalism and free trade, and demonstrates its impact on individual lives and communities. In addition, the book now features a new chapter on immigration policies and outsourcing, and advice on how individuals can avoid becoming victims of outsourcing. The authors discuss policies that countries like India and China use to attract U.S. industries, and they offer frank recommendations that business and political leaders must consider in order to confront this crisis—and bring more high-paying jobs back to the U.S.A.

De-industrialization, accelerated by the financial crisis, is a long term process. The comparative advantage of emerging economies shifted towards more advanced goods and their growing populations commanded an increasing share in global demand. This shift towards a factory-free economy in high income countries has drawn the attention of policy makers in North America and Europe. Some politicians have articulated alarming views, initiating mercantilist or 'beggar-thy-neighbour' cost-competitiveness policies. Yet companies that concentrate research and design innovations at home but no longer have any factories there may be the norm in the future. This volume proposes an economic analysis of this phenomenon and includes 11 contributions which complement each other and tackle the problem from different angles. The evidence in this book suggests that de-industrialization is a process that happens over time in all countries, even China. One implication is that criticism of China is not likely to provide a solution to these long term trends. Another implication is that the distinction between manufacturing and services is likely to become increasingly blurry. More manufacturing firms are engaging in services activities, and more wholesale firms are engaging in manufacturing. One optimistic perspective suggests that industrial country firms may be able to exploit the high-value added and skill-intensive activities associated with design and innovation, as well as distribution, which are all components of the global value chain for manufacturing. Although this ongoing transformation of the industrial economies may be consistent with evolving comparative advantage, it has significant short-run costs and requires far-sighted investments. These include the costs to workers who are caught in the shift from an industrial to a service economy, and the need to invest in new infrastructure and education to prepare coming generations for their changing roles.

InThe Transformation of the New Economy, editors Robert Perrucci and Carolyn C. Perrucci critically examine existing conditions in the workplace and discuss the political and economic forces that have shaped them. The book explores established practices governing how products are produced, how work is organized, and who comprises the labor force. Perrucci and Perrucci examine computerized production technology, global production chains, and the international division of labor as products of political struggles between corporations, workers, and the government. The outcomes of these struggles have produced our global economy, made jobs less secure, and kept wages of average Americans from growing the way they did post-World War II. These outcomes have also led to downsizing in the workplace, restructuring the social organization of work, and outsourcing jobs to other countries. This anthology illustrates how the new economy has affected: * Job opportunities and income for workers of different gender, race, and class. * Working conditions of professionals, factory workers, and workers in the service economy. * Family life of parents, children, and dual earners. The closing section of the book focuses on policy changes that could improve the conditions of workers in the new economy--with specific attention to raising wages, better access to health care, and company policies that empower workers.