Companies save 40% on labor costs by outsourcing overseas

This isn’t news. When will people in the United States realize the multitudinous layers of government and government regulations hinder American businesses ability to hire American employees. The question is rhetorical.

The idea came to Johnny Taylor Jr. early last year, after one of his employees made a case that her technology position could be done anywhere. She wanted to leave Virginia, where she held a job at the Society for Human Resource Management, a professional association based in Alexandria. She asked to work remotely in North Carolina. 

“Then a lightbulb went off,” said Mr. Taylor, the association’s chief executive.

Instead of having the employee work in another state, he outsourced her job to India, where his organization is saving around 40% in labor costs, he said. 

Next Wave of Remote Work Is About Outsourcing Jobs Overseas – WSJ

When a woman can earn $2,000 per month in Mexico for IBM and be able to eat, pay rent, save, and invest you know the cost of living and, as a result, labor in the United States is too damn high.

Skilled workers in developing countries, meanwhile, stand to benefit. When Mexico City-based tech worker Benci Ruiz got an email from an International Business Machines Corp. recruiter in September 2021, she initially thought it was Spam. She now makes around $2,000 a month working remotely as a mobile-app developer, which she said is about double what she could earn at a local company. Benefits are better, too, and she doesn’t have to commute every workday, which took up around three hours a day at a prior job.

“I can eat and pay rent, and also save and invest,” she said. 

Next Wave of Remote Work Is About Outsourcing Jobs Overseas – WSJ