Topic > International Outsourcing Case Analysis - 1032

For example, the minimum wage in China just increased by 20% (Peters, 2015). Companies that want to keep labor rates low may have to move, which costs time and money. Dealing with international standards can also be challenging; it requires skill and acceptance of higher risks for the organization (Schniederjans & Zuckweiler, 2004). Outsourcing also contributes to income inequality by shrinking the middle class. It is reported that approximately 15 million jobs will be outsourced overseas by 2015, and a survey of 275 U.S. companies indicated that 47 percent of jobs moved overseas were highly skilled and paid over $50,000 ( Bryan, 2011). Maintaining property rights and quality control were also highly valued criteria that were at risk of being compromised internationally