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A word about sourcing
Cost savings is the primary reason
for outsourcing to countries with
lower labor costs. Typically it is
the standardized and low value jobs
that move abroad. However, cost
savings alone does not describe the
whole story. By moving certain tasks abroad
companies attempt to provide
round-the-clock service. To that
extent overseas outsourcing directly
improves efficiency. A
benefit of cost savings is the
opportunity to get more for the same
R&D dollars, such as speed up
product launches, develop more
prototypes and improve quality.
The main reason why companies in the
U.S. outsource is to increase
productivity, increase
operations efficiency and
most importantly survive
as a business.
The smaller and mid sized US
firms are now partnering with Indian
firms to
stay competitive in the US and
global market place.
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