Essay about Acp Should Not Outsource For European Countries At This Time

829 Words Nov 30th, 2014 4 Pages
CCI should not outsource to European countries at this time. Companies choose to outsource, using the benefit of lower operational and labor costs. There are benefits to company revenue recognition. However, compared to other developed regions, Europe has some of the highest minimum wages in the world. Some European countries, for example The Netherlands and Scandinavia, do not have standardized hourly rates of pay for workers. Currently, Massachusetts has an $8 per hour minimum wage rate, which is lower than the standard minimum wages of the European areas listed below (FedEE, n.d.).

Country Standard Minimum Wages Converted to USD (rate per hour)
Netherlands €1,485.20 per month
(Mandated by law: workers aged 23 and above qualify for this higher rate) $10.70 per hour Luxembourg €1,921.03 per month
(for workers over 18 years of age) $13.84 per hour
Ireland €1,499.33 per month $10.79 per hour
Belgium €1,559.38 per month
(for workers between ages of 21 and 22, €1,559,28 per month, provided they remain employed during that year) $11.24 per hour
UK £1,126.66 per month $10.24 per hour

Although outsourcing offers some attractive cost benefits, risks and complications that can hamper the expectations of higher profits (Hamel, 2013.). Outsourcing manufacturing may be unpopular with domestic consumers, as we will essentially ship domestic jobs overseas, which could hurt CCI’s reputation. Outsourcing can also put a company 's intellectual property at risk, since U.S.…

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