Outsourcing is a term that has been used by many companies in the last few decades and it has resulted in a lot of unemployment in the state that the company runs out of and it will cause a lot of uproars there in that state. But on the other hand, Outsourcing can actually cause mass employment in another state which in turn will boost the local economy there and in turn the entire economy of the state and country that it will inevitably and efficiently run out of.
But what exactly is outsourcing and why does it cause a psychological fear in some and a euphoric joy in others. Now, Outsourcing is most commonly defined as one company reaching out to another company to take charge in a certain department at a remote location. It may or may not involve the interchange of assets such as workers and etc among one another. Other than the private sector, The government is one the biggest utilizers of outsourcing but they perform it at a minimal scale and they normally outsource the work within the limits of the state in order of boosting the local economy but the private sector plays a whole different game than the government. The private sector doesn’t really have the local economy in mind. In fact, the goal isn’t even in their hindsight. Their main goal at hand is always to maximize the number of profits they can bring back home and outsourcing is one of the biggest ways they can do that. It has sort of becoming a trend in this day and age but it’s not one of the better trends to follow because overusing outsourcing could prove to be catastrophic for the economy of the country because it does not allow for the influx of jobs in the state and it does not contribute to the overall GDP too. The main reason companies outsource their work outstation is to minimize costs on wages and also renting costs on the offices. But where do the companies normally outsource to? Well, Here’s a list to help you make the decision.
India is the number one go-to state for most people when they’re looking to outsource their business. One of the main reasons being the cost of living in India itself. The average cost of lunch over there for a whole month is recorded at 2 British Pounds or RM 10. This has attracted the eyes of most businesses and companies because they don’t really have to pay the workers there much because of the cost of living and the average salary there is so low. Remember the key point being that a companies main goal in running a business is to maximize their profits and stretch out the cent as much as they can. The other reason that India is the ideal state to outsource is the fact that there is a surplus of people living there. India is at this point in time the second-most populous country in the world and carrying that title means that India is always looking for opportunities to create jobs for the people there and outsourcing proves right for them as they can help boost the job market and local GDP there. India is the got place to Outsource remote IT support services as the locals there are well-versed in computer sciences and technology which is why most IT companies have looked to outsource their call centers and helplines to India.
Mexico is also rising to become one of the biggest outsourcing states in the world. Just like India, the cost of living there is fairly low and you can stretch the dollar there a lot longer than it goes for in the USA. That being said the main people that export and outsource their work to Mexico are the USA because they are right above them and they can easily handle the logistics of things and if anything goes south literally then they could easily go down the border and handle things on their own.
These are the main reasons for businesses to outsource their business so you should take notes as it could help benefit you in the future.