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In order to remain or become competitive in today's economy, US based companies must outsource jobs to foreign countries.
The cost savings that can be derived from hiring employees in underdeveloped countries such as India or China are astounding. According to Agrwa and Farrell (2003), "For every dollar of spending on business services that moves offshore, US companies save 58 cents, mainly in wages." The average salary for low level finance positions in 2006 is $58,500. (Report on Salary Surveys, 2006). By performing a simple calculation, we discover that by hiring offshore for low level finance positions, US based companies will save approximately $33,390 per employee...
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