Saving cost is one of the most compelling reasons why many companies go into outsourcing. Companies can take advantage of the lower labour cost by outsourcing tasks to companies operating in developing countries. Initially, Philippines, India and Vietnam are good outsourcing destinations. Outsourcing reduces, if not eliminates, the costs associated with finding, hiring and training the staff.
Outsourcing also helps companies control their capital outlay. This is important especially for small businesses with a restrained budget for office equipment or rent.