Catherwood LibraryILR School

Facing pressure to cut costs, IBM has discussed plans to move more of its white-collar jobs overseas. Companies have been shifting low-skilled manufacturing jobs overseas for years, but using this practice with high-skilled and high-paying jobs in the service sector is a relatively new trend. Companies like IBM argue that shifting jobs overseas, where labor costs are cheaper, is the only way to remain competitive. They claim that by building their global networks they are achieving higher productivity, which will increase overall employment. However, the government is concerned about the effect on the American public of taking away much sought after jobs when the economy is still weak.