The Social, Economic, and Political Impacts of Offshore Outsourcing on the Companies and Developing Countries

Abstract

With the changes in the industrial era and the transformation of global trade, offshore outsourcing as a new business model was born. In developed countries, offshore outsourcing can be traced back to the 1960s. In the 21st century, the offshore outsourcing business is gradually expanding and tends to spread all over the world. Offshore outsourcing enables companies and their suppliers to be widely fused into the world economy. This article aims to discuss the social, economic, and political impact of companies’ business transfer to developing countries. By combing the concept of offshore outsourcing and exploring the impact of offshore outsourcing on multinational corporations and developing countries, it is found that although it has some disadvantages, it is still a win-win strategy. Because it promotes globalization, promotes cooperation between companies and developing countries, reduces costs, accelerates industrial progress, and thus promotes the economic development of both sides.