Question

If the multinational companies outsource many services to countries like India because of cheap manpower, what will happen to people living in the countries where the companies are located? Discuss.

Answer 1

When multinational companies outsource services to countries such as India, some workers in the countries where those companies operate may lose their jobs or face fewer employment opportunities, especially in work that can be done more cheaply abroad. At the same time, outsourcing can reduce the company's costs and may allow it to become more competitive, expand its business and create different kinds of jobs. Therefore, outsourcing benefits companies and creates employment in countries such as India, but it may also create job insecurity for some workers in the countries from which the work is outsourced.