The discussion about whether outsourcing generates more jobs or leads to job shortages has been on for years; nevertheless, both the short and long-term labor market consequences of outsourcing seem to disprove these negative insights.

From call centers and technical support hubs to research and development, US-based corporations are outsourcing most of their functions to low-cost countries to attain efficiencies and sustain profitability. The mass of these outsourced jobs touch down in low-cost countries like India (with over 3 million jobs in the industry) and the Philippines (almost a million jobs in the industry). These countries have experienced significant success in the outsourcing and offshoring industries and at present, outsourcing forms an integral component of their GDPs.

Outsourcing has assisted these countries to advance their social frame by delivering employment to a hefty unemployed population. The presence of one of the biggest groups of English speaking and writing endowment has helped India materialize as an outsourcing terminus over the past few decades. The obtainability of this resource pool is as a result of India’s historical colonial status.

The advantages of outsourcing to developing countries include, amongst others, low costs, quality, and increased customer fulfillment.

Essentially, outsourcing of non- core functions of business operations liberates up time and assets for the firm, permitting it to concentrate on its core roles such as production, marketing, and expansion.