Why Companies Outsource Their Jobs to Foreign Countries

Date November 2, 2007

 

Outsourcing is the latest buzzword in the business world today. Because of outsourcing, companies today are becoming more competitive and more efficient in doing their businesses. So, what is it about outsourcing that it is so hot in today’s business world?

First of all, you need to know about outsourcing before rushing in to call other companies and outsource your business process. Outsourcing is a method that a company does by hiring other companies to do the other company’s business process or at least part of the business process in order to save a lot of money and allow the company to concentrate its resources to more important matters.

This is why outsourcing is so popular in the business world today. With outsourcing, you will now able to save your company from spending a lot of money and at the same time, make your company concentrate on more important matters.

Usually, companies outsource their business process to other companies that accepts outsourced jobs in foreign countries. Companies today prefer outsourcing in developing countries, such as Mexico, Philippines, China and India because of the relatively cheap labor in these countries offer.

For example, if your company needs a help desk department in order for your clients reach your company to get their questions answered regarding the products and services they purchased from you, your company will spend a lot of money in creating this department. You will need to purchase computers, get it on a network, purchase help desk software and also hire additional employees to act as help desk representatives. Not only that, you will also devote a significantly large office space in order to accommodate the help desk department. Also, the employees you hire will be asking you for a high salary with full company benefits as a full time employee.

Now that you see how costly it is to create and maintain a help desk department, you should consider outsourcing it to save a lot of money and at the same time, save office space that you can later use for more important company matters.

Outsourcing to foreign countries that has call centers will enable you to cut on operational costs. They will charge you for their services but it will be significantly lower than maintaining your own in-house help desk.

You have to realize how much money you can save if you outsource.

Another vital factor is that your company will be able to divide the business process and let your company concentrate on more important matters, such as marketing, looking for new clients and other money making ventures that your company should prioritize.

The key feature in outsourcing your jobs to foreign countries that charge less is very obvious. With outsourcing, you will be able to save on company expenditures and at the same time, make your company competitive once again in the business world.

However, you should always remember that you should make sure that the company you will be outsourcing your company’s job in should produce a high quality product. In call centers, you should look for a company that employs people who speaks fluent American English with little or no hint that they are from foreign countries and speaks English only as their second language.

So, if you think that you need your company to be more efficient, competitive and save a lot of money, you should consider outsourcing your company’s jobs or part of your company’s job in foreign countries.

7 Responses to “Why Companies Outsource Their Jobs to Foreign Countries”

  1. terry said:

    some day their will not be, any jobs for no one ,that includes YOU.
    why don’t everyone wake up.
    i think i stick to small business owners.
    they are only thinking of NOT paying for the BENEFITS ONLY.
    some day who does these things i hope it happens to them (NO JOB)
    i was working and twice they outsource my job.
    YOU DO NOT KNOW THAT FEELING.

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  4. danielle said:

    This is true. Outsourcing has helped me a lot with my business, i just cant handle everything on my own and there some things needs to be done that requires professional attention, but i just cannot hire an employee for that specific task since im just starting with my business. And the service provider i choose (secretstaff.com), handled the rest of my workload. With outsourcing I was able to give much focus with my business.

  5. marlies said:

    I agree with Terry. Keep jobs in America! We are eventually ruining ourselves if we outsource and/or produce the majority of products in foreign countries. Workers are consumers and if consumers have no money - they cannot spend. I have stopped using services that use foreign outsourced labor. I am tired of calling India! Has anybody thought about outsourcing to people who have computers at home and can work from home?

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