Employee outsourcing is done based on many reasons. Cost Saving is a one fine reason. Offshoring or labor arbitrage is done by developing nations to access lower cost economies. When the organizations focus on improving their core businesses, they tend to outsource employees. For an example if there is an organization which is specialized in marine engineering they could hire well qualified and competent marine engineers from the external job market. Another advantage of outsourcing is that improving the quality of the products and services by having a well qualified and competent outsourced employees, and also could gain more knowledge from the so called employees since their educational and professional qualifications lies at a higher level.
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