It is interesting to make a note of how ‘outsourcing’ as a concept has received varied responses. The way different people accept such an introduction to the mainstream economy is being hotly contested. While some consider it a great way to take the economy forward, others see massive loop holes in the entire system. Let m take you through what the concept means and all that it implies.
So what exactly IS outsourcing?
Outsourcing is nothing but getting contracts for a particular task, and then giving them to residents of another country to complete those tasks. Say, for example, that I get a contract. I can get it performed by people living in other countries who I will have to pay for completing those tasks.
Before getting into that let me make it clear that outsourcing work may not be a good idea for all. Outsourcing cannot work well for everyone who is interested in maximizing profits. Therefore you must assess the nature of the job and find out whether outsourcing work will be cheaper for you, or employing people of your own country would be a better option.
This decision will depend upon the companies that you are working with. Let us asses the situation with the example of companies in the
It is a well known fact that companies in the
At this end of the spectrum could be a country like
Above I have merely tried to illustrate the rationale behind outsourcing. Apart from saving huge expenses for the companies, outsourcing, like mentioned above, enables those companies to sell their goods at reduced prices, benefiting consumers.
Another way of looking at it would be that your company pay be providing jobs to hundreds of people in the country you outsource your work to who would ordinarily have been jobless.