Some firms use this tactic to focus on the work only they can offer.
By Rob Nixon
Manufacturing companies have been using low-cost labor in developing countries for decades to produce their products. Just look at the clothes on your back. I bet very few of them are made in the U.S.A.!
The reality is that because of escalating labor costs, most Western countries have priced themselves out of markets by attempting to produce the product locally.
Up until a few years ago, it was primarily “hardware”-based manufacturing companies using this resource. Now we are seeing “services” companies embrace the outsourcing trend with fully resourced teams.