Outsourcing Works
What are the advantages of outsourcing?
We hear a lot of cries about how outsourcing has crippled one’s economy and is blamed for the loss of jobs of millions out there. If the manufacturing of iPad is done on local US soil, we might as well pay $14,000 for it just to justify the cost of having someone assemble it ( this is just an example ). So, outsourcing work to other countries make it possible for people in the US to buy cheaper goods. What other benefits can you think of?
Outsourcing has many advantages for which many companies are shifting to low cost country sourcing
Major advantages for companies are
Companies can devote more time on Research and Development
No overheads
Lower cost of manufacturing
These outsourced companies get business from principals hence employment for peoples in these countries .
Brands are marketed in different geographies hence giving jobs to these big multinationals
Eg Sony , Kraft , Nestle , Kellogg’s ,Ford ,Google ,HP , Microsoft and many