Question

Why do some countries outsource their work?

Answer 1

outsource their work because of high wages in their own countries compared to the developing countries which offer similar services at a much cheaper rate. So for optimal use of resources and to maximize profit, these companies outsource their work to overseas locations (offshoring). For example; Data processing is an IT related service that can be easily carried out in Asian, East European countries where IT skill staff with good English language are available at much lower wages. Also, overhead costs are much lower, making it all the more profitable.