Why do companies out-source to other countires?

Answer 1

It's less expensive and they earn more money...I'm pretty pissed off about it though. I have my credit card right and when I call my bank, I should at least have good customer service where the representative understands english thorough enough and can answer my qustions instead of transferring me constantly or saying "I understand please hold while I look up your account AGAIN". Dammit, I already am a customer. Can they at least give me what I want now? ugh....I don't care where you have your employess....Make them speak english just a little bit! I speak spanish as well but what are the chances of that happening when the location your calling is in a place like Iran?

Answer 2

The main goal of a company is to make profits. You can do that by either increasing revenue or decreasing expenses or both. The biggest expense a company has is Payroll.

In the United States, a customer service rep. would make say $40,000 a year (don't know, just guessing). In India, that same cust. svc. rep making 40k rupees a year is good money, but when you take the exchange rate into consideration, that's only US$853.00 per year (based on current exchange rates). You are saving over $39,000 a year, or you could hire 46 employees in India at the same cost to hire 1 employee here in the U.S.

Answer 3

It's cheaper. The labor in the U.S. is the most expensive in the world because we are the most affluent and have the highest standard of living.

So, to stay competitive, companies look to get certain things done outside the U.S. Even American automakers do it.

Answer 4

so they can get advertised all over the world AND make lots more money. If u hear about a company in america, you wont think about it unless u go to another country and hear about it there. so thats prolly why.

Answer 5

money

they can get the same job done for less money (for example a call centre in India) so the company will make more profit.

Answer 6

cheap labor.