In: Business and Management

Submitted By hell98
Words 1563
Pages 7
Does Outsourcing Save Money


October 7, 2006

Jacqueline Lance

In this day and age, we wonder why major companies outsource and whether they are really saving money. A website named investors.com said, “More than 1.3 million additional Western jobs will vanish by 2014 due to outsourcing”. Outsourcing to foreign countries can help save larger companies money, by reducing cost and increasing revenue. Companies are finding more ways to save money and increase productivity. Outsourcing might not look like the best decision to consumers in reality it is the best choice for a business. Even though a lot of American workers are out of work, there are still several benefits to outsourcing. The main benefit to outsourcing for most companies is saving money. In this current economy it is hard to save money in America with the cost of just about everything increasing daily. Companies have no other choice but to outsource, or they might have to close down. In order to keep up with consumer demands, major companies are outsourcing to foreign countries, were they are able to get tax breaks and cost reduction on materials. With the cost savings that the companies receive they are able to produce a better product. There are several things that must be completed prior to determining if out sourcing is the best option for your business.

Outsourcing in foreign countries is becoming the new way for companies to save money. Before a company can make the decision to outsource that company must first look at the pros and cons. The number one reason most companies decide to outsource is to save money. “Outsourcing involves the procurement of physical and/or services performed internally or abstention from an activity that is well within the capacity of the firm.” (Salanţă, 2011) Other benefits of outsourcing are: focus…...

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