Outsourcing is a logical extension of Adam Smith's theory of "Comparative Economical Advantage".
The advantages accruing to the corporates are:
i) turning the management's focus to core competency,
ii) confidentiality of the pay package offered,
iii) freedom from red tape & adhering to strict rules & regulations,
iv) pension fund management,
v) a satisfied and, hence, highly productive employees,
vi) state-of-the-art technology at no extra cost, and
vii) increased market velocity. |