Reduced Costs of OutsourcingOne of the main reasons businesses will consider outsourcing is the overall reduction in costs. Outsourcing offers a more efficient approach to controlling operating costs. Costs per additional employee include salary, overhead, equipment/software, training/education, other supplies, and possibly facility costs (Sood, 2005). Another cost-saving quality relates to overall human resources, as outsourcing eliminates costs related to future employee development, ongoing training, recruiting, payroll and benefits. Many markets are able to reduce operating expenses and cost of goods sold through outsourcing. This article will shed light on IT, electronics, automobile industry and customer services. India has a competitive advantage in the global IT market. The salary scale of Indian software professionals is around five times lower than their counterparts in other developed countries. India has managed to maintain a competitive advantage by maintaining a high supply of IT professionals. India provides more than double the number of computer science graduates than any other country (Askari and Chatterjee, 2003). In other words, they are able to provide highly skilled, low-paid IT professionals with English language proficiency. It is estimated that by 2008, India will employ $77 billion in the global IT market. But as salaries in India have gradually increased, other countries have been competing with their low-wage IT professionals. According to the article “Attention, India – Outsourcing to China” in The Economist (2006), salaries of graduates, engineers and programmers have increased rapidly and staff turnover in IT companies can reach 30-40% per year. year. Although not at the same rate as India, countries are producing graduates who compete in the information technology outsourcing market. Other outsourcing locations whose costs have been evaluated include China, Malaysia, the Philippines, Singapore, Thailand, the Czech Republic, Chile, Canada and Brazil (Regalado, 2007). The cost of engineering time can be significantly reduced by outsourcing work to Asia. In 2005, the average U.S. salary for software design and development positions was $51,596, while the average annual base salary for software engineers in India was equivalent to $10,300. At the same time, new Irish graduates received an average of around $27,500 (Geer, 2006). In the electronics sector, the U.S.-China wage ratio for product engineers is approximately 10:1, and for software developers, the U.S.-India ratio is approximately 10 : 1. 8:1.