Problems of Outsourcing

Outsourcing has many advantages for the company owner but it can be very frustrating for people where the business is based. The people are deprived of jobs. The people pay taxes and the government gives tax relief to these businesses so that they can employ more people but these companies simply maximize profits by getting their work done in some other part of the world at very cheap cost. This is because in the first world countries wages are much higher than the third worlds as cost of living is also higher. Hence the local people are greatly agitated but on the other hand it provides good employment schemes for the developing countries.