Offshoring may seem controversial, but done correctly, it can have many benefits for both the companies and the offshore employees. First offshoring can drastically reduce labor costs, which then can lead to lower costs by consumers. It also provides many job opportunities in developing countries, contributing to less unemployment rates, better wages, and improved living standards. Companies can also focus their time on more vital operations such as innovating and customer service.
Some drawbacks, however, are job displacement, wage stagnation, and economic inequality. So, the challenge remains in ensuring fair labor practices.
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