Why Companies Outsource

One of businesses most controversial topics is outsourcing, which is essentially an internal business contracting out to a third party organization, such as India, to do a large amount, if not all the technical work. The following article, titled 12 Reasons Companies Outsource Operations Overseas, discusses the top reasons as to why companies outsource. Some of the reasons, such as lower costs, tax benefits, and lower wages, are obvious. Other reasons, however, such as uncertainty over politics, commodification, and contractual certainty, may come as a surprise. The fact is, the majority of today’s companies are outsourcing, and it would be beneficial for everyone to understand it more clearly.

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