Outsourcing to low wage countries does not pay

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Dutch companies that outsource work to foreign countries often fail to meet their objectives due to inexperience in working with foreign partners.

4 June 2008

THE NETHERLANDS - An annual study by Rotterdam's Erasmus University into 10,000 businesses has revealed that many Dutch companies that have work done in countries with lower wages often do not reach their goals.

In 85 percent of these companies, profits and results are disappointing.

The reason is because most companies have too little experience in working with foreign partners. Differences in culture and organisation between the two countries also form obstacles.

One in three companies in the Netherlands outsources work to foreign countries.

[Radio Netherlands / Expatica]

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