Causes of Outsourcing

Many companies are cutting their jobs and moved to India because the availability of skilled English speaking labours for fraction of the wages paid in USA. Finding cheaper labours is a short term fix to help cut their losses and raise their profit, specially at service companies.

The broadening of high speed telecommunication links between India and the USA, the growth of internet-based communication and the reducing cost of computers and communication have also vastly raised the outsourcing trend. Indians to access US computers and for US companies have worked continuously 24hrs per day without the need for overtime paid.

The falling cost and higher reliability of newer communication on system were specially important to shifting of less skilled and relatively lower wage telephone call services jobs from the US to India.


  1. nice topic and useful for economic students

  2. I hate how company always think to have cheap labor.. cheap mean unprofesional company..


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