Outsourcing, by definition, involves procuring goods or services through an outside supplier. You’re probably familiar with outsourcing in the context of a job or department moving to India, the Philippines, or China. Why do companies choose to outsource certain aspects of their business? The reason typically comes down to one or more of these three factors:
1. Goods can be produced at a lower cost overseas.
2. Employees can be hired for less overseas.
3. U.S.-based employees can be redirected toward more complex, strategic initiatives.
The bottom line is that companies are increasingly under pressure to produce more for less. That means faster, better output at a lower price. Sometimes the equation just doesn’t work for ...