Cultural Impacts of Technology on the Workplace Essay Example

Cultural Impacts of Technology on the Workplace3


Cultural Impacts of Technology on the Workplace

2.4 Cultural Issues

2.4.1 Outsourced Jobs

The outsourcing debate is transforming, and there are a growing number of experts who feel that it is creating long-standing structural unemployment digging out entire industries. It is due to globalized extensions of having workers sent to work outside an organization to specialized companies. At the beginning of industrialization, there was a perception that required big corporations whose performance covered an array of activities and took advantage of the economies of scale. It has led to one big multinational producing its products, fabricating them, generating their power and coming up with their advertising. It is as a result of these companies outsourcing some of these manufacturing processes to produce diverse products to enable them to compete globally (Doh 2005). Improvement in technology has made communication and sharing of information quite an easy task thus making it possible for outsourcing to be viable. It has lowered transportation and coordination costs making it able to move more and more workers from one country to work overseas. Due to technology, firms have been able to move production to overseas countries involving most vital core activities (Bartel et al., 2005).

Technology has made it easier to talk to people overseas hence making outsourcing possible. It is due to the ability to create relationships based majorly on mutual understanding and sharing of common interests. Other experts warn that we expect more from technology and leaving us with nothing to expect from each other. People have built relationships with technology making it part and parcel of our daily lives. Outsourcing affects the human resource it provides companies with cheap labour hence making them take advantage of economies of scale. According to Bartel et al. (2005), an IT expert in China earns $7,100 annually while the same earns $8,400 in India. It is upon the large corporations to decide on which values work for them and which ones do not. Local resource in other countries is losing jobs as a result of outsourcing. It is due to push from outside stakeholders unlike in the past when most businesses were family-owned. It made such businesses reluctant to move their firms elsewhere (Kakabadse and Kakabadse 2005).

2.4.2 Age Issue

Outsourcing is a controversial subject in as much its objective is to maximize on low-cost labor and great efficiencies and expertise of enormous outsourcing companies. In one way or the other, someone loses their job, and someone else gains that job. It is usually overseas or due to lower wages. Age propagates this issue where young experts who have grown with technology seem to have an upper hand when it comes to technology works. Most corporation managers felt that is they do not maximize on short-term gains, their organizations would be taken over hence losing their jobs. It influenced outsourcing overnight hence became good tests for executives. It led to young workers being an easy target as they have the required technological knowledge, and they are good for cheap labor. Young workers have grown to see technology work for them and how it a transformation in terms of globalization. The younger generation is always on and connected. They embrace trending technologies in their work, and socialization, and they adapt faster enough (Gilley and Rasheed 2000).

Older workers lose job earlier as they do not have the skill and knowledge to perform their work. As compared to younger workers, old workers tend to rely on technology for convenience purposes, and they only interact with technology when banking or shopping. Technology is not yet a central aspect of their life, and they tend to move run away when they are required to use technology. It has led to older workers resigning or retiring early from their jobs since they cannot cope with the ever changing technology. According to Lee et al. (2003), Commerce Department statistical data indicates that multinationals based in the U.S. add more than 2.4 million jobs overseas while cutting over 2.9 million jobs back at their home. It is important to note that large multinationals compete for export markets to enhance their growth. It is a move of their job to offshore factories and contractors. Experts argue that it creates new jobs in finance, engineering, and marketing back in their home. However, it is not the case for small corporations whose export sales do not grow quickly. Export powerhouses include Boeing, Apple and Cisco (Morrison et al., 2001).


Bartel, A., Lach, S., & Sicherman, N. 2005, Outsourcing and technological change (No. w11158). National Bureau of Economic Research.

Doh, J. P. 2005, Offshore outsourcing: implications for international business and strategic management theory and practice. Journal of Management Studies, 42(3), 695-704.

Gilley, K. M., & Rasheed, A. 2000, Making more by doing less: an analysis of outsourcing and its effects on firm performance. Journal of Management, 26(4), 763-790.

Kakabadse, A., & Kakabadse, N. 2005, Outsourcing: current and future trends. Thunderbird International Business Review, 47(2), 183-204.

Lee, J. N., Huynh, M. Q., Kwok, R. C. W., & Pi, S. M. 2003, IT outsourcing evolution—: the past, present, and future. Communications of the ACM, 46(5), 84-89.

Morrison Paul, C. J., & Siegel, D. S. 2001, The impacts of technology, trade and outsourcing on employment and labor composition. The Scandinavian Journal of Economics, 103(2), 241-264.