Outsourcing is still a mystery to a lot of us. There are a lot of people who will look for services like call center outsourcing vendors and the like. How does it actually work and is it something that is going to make sense for your company? Outsourcing is basically when one company hires an outside company or outside people to do a certain task for them. People who are freelancers are usually outsourced- they work on one or two projects for a certain company, there’s no binding long-term contract, and it’s done.
Now, many companies in the United States have adopted this practice of outsourcing to the point of hiring people in other countries to do work. Many times, this is totally advantageous for the companies, but hurts the people in the country that the company doing the outsourcing. Let’s look at why this is the case.
First, it helps the company doing the outsourcing in the following ways:
- Labor is often cheaper in other countries. Instead of having to pay minimum wage, they can pay much lower wages to get the same work done.
- Even if you are outsourcing your work, you can find freelancers, who don’t have to be paid minimum wage either.
- They aren’t taxed as heavily because of the outsourced workers. It used to be that they weren’t taxed at all, but in recent years this has changed.
It helps the people doing the outsourced work by giving the people a chance at a little more income than they could get working within their own country. They may also have opportunities (if they are US citizens) to get some work when they would have just been unemployed for awhile otherwise as well. In short, outsourcing helps everyone that is involved in the process.