Offshoring is a form of outsouring when a company is operating overseas but the element of the company is within itself. This gives the company a chance to exploit laborers and sources at lower cost than from their homeland. So usually, companies in rich countries are implementing offshoring in poor or developing countries. According to the article I read, as much as more than 75% of major financial institutions operate overseas now and UK has saved 1.5bn pound a year by offshoring in China and India. However, the surprising thing to read was that trade union Unite have said offshoring is ineffective due to increase in staff turnover and in wage.
How can offshoring be considered ineffective just because of changing staff and increase in wage when money earned is billions of dollars?
I guess it is not quite right to say that offshoring is ineffective just because of increase in staff turnover and wages. Offshoring has benefited the countries so I can`t say that offshoring is not ineffective.
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