The hidden costs of outsourcing

by: Guest Blogger

While outsourcing cuts operating costs, lost productivity and attrition rates among off-shore workers due to poor health and loss of social life dramatically decrease companies' profits.

The most common reason why companies send work off-shore is to lower their operating costs. Even with the initial expenditure in setting up project offices, hiring talents, travel, and training, US- and Europe-based companies still save in the long run.

However, there is a hidden cost that companies fail to consider: the health of their outsourced teams. Even among the outsourced workers who are lucky enough to be brought on-shore via H1-B, L-1, or other working visas, the trajectory is almost the same, due to the lack of labor law protections that are accorded to in-house workers or working citizens and immigrants.

An Associated Press story notes that heart disease, diabetes, sleep disorder, indigestion, and stress are common among outsourced workers based in India. The typical culprit is the need to work on overnight shifts answering calls from Europe and America, typically irate ones. Aside from poor health, their social lives also suffer. This is especially true among women who, after working on long shifts, are expected to care for their families upon coming home.

Read the rest of the article here: Moreover, dramatic changes in lifestyle......