Why do companies outsource?

Have you ever wondered why companies outsource? You think you know the answer? Well, is not only labor costs. It 's also a regulation on over the United States, the causes and the supply chains of raw materials.

You see the efficiency is the name of the game and also appears sales in international trade are also very wise to consider. Ask a senior manager with the Division of Boeing Commercial Aircraft Manufacturing, Outsourcing, for example in India or China, where it will be the purchase of 1000 new jets over the next decade.

So, if some of the components are assigned there and can be done cheaper, and you get the sales you win three times and also provides good incentives for trade and lowered tariffs on other imported goods. Makes it more fair trade possible and probable. It also helps in the stability of political cooperation, and that means fewer wars and fewer interruptions as well.

I think we should apply a little 'philosophy of Plato to the mix when it comes to "Outsourcing", for example in the Republic said that every member of society must do what is best to [excel] and be relieved of responsibility for what they are not good at.

Now, if you look at the corporate world, a company should do what is best and buy the things they need from other companies that are more efficient at doing these things.

Think of a team, the team needs the best players in the right positions, consider a football team. The doors should not be a striker or a median. Each team member must be a specialist. It 's really the best models of efficiency and more companies need to look at it this way, and companies that fail to do so will probably be beaten by those who understand this concept. I hope you will consider some of these thoughts in your economic, labor and how to solve this problem. So, think about this in 2006 .......