Outsourcing: Does outsourcing enhance efficiency and productivity?

  • People show it with their wallets

    Outsourcing is clearly a boon for efficiency and productivity. Allowing countries that can more efficiently produce certain services is beneficial to the world overall, allowing those new populations to get work while lowering prices in countries that consume said services. While some members of Western countries may be less able to find jobs, the economy of the world ultimately improves.

  • Yes, cheaper labor increases efficiency.

    Yes, outsourcing enhances efficiency and productivity, because it allows business to stay competitive in the face of rising labor costs. Outsourcing also allows a corporation to find workers that might be better trained, yet unable to move to the primary location of the corporation. If a business can lower their labor costs, they can improve productivity by spending their capital in other places, either by hiring additional workers, updating equipment, or lowering prices.

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