Outsourcing is the practice of having certain tasks done outside of a company instead of having a department or employee within in the business do the job. Outsourcing in the United States has become a major trend over recent years. These companies outsource because it reduces payroll and overhead costs. The way it can do this is because when you outsource you usually pick a location where the cost of living is less than here in the United States. This means the employees that you are now hiring will work for less, but do the same amount of work. Some companies however do not like to outsource because they feel it is taking jobs and opportunities away from people within the business.
There are a lot of positives that come with outsourcing. For instance, there is almost always more revenue and enhanced returns on investments within the business. This is usually because of the lower labor cost and increased understanding of economics, which in itself is another advantage of outsourcing. The productivity is also quicker when you outsource, because the labor is cheaper it makes the company have the choice of hiring more people and consequently more production. Outsourcing also frees up management
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The reason behind sending jobs off shore is that Waste Management wanted to, “optimize back office process functioning.” This involves things such as data entry and billing. They currently have 2000 employees in Arizona and they have decided to outsource 120 jobs from the mix. This would add up to be right at 6 percent of the total work force they have in Arizona. These new jobs will be relocated in the city of Indore, which is a poor suburb in India. So poor that most city folk there report their salary to be as low as 78 dollars per month, with eggs being around 88 cents. That’s a tight budget for anyone to work