What is global outsourcing primarily used for in a business context?

Global outsourcing is primarily utilized by businesses to reduce costs and improve productivity. By outsourcing certain functions or processes to countries where labor and operational expenses are lower, businesses can significantly cut down on expenses associated with production and service delivery. This practice allows companies to focus on their core competencies, streamline operations, and enhance overall efficiency.

Additionally, outsourcing can lead to improved productivity as specialized vendors can often perform certain tasks more efficiently. By leveraging external resources, a business can scale its operations more effectively, respond to fluctuations in demand, and innovate more freely without being bogged down by non-core activities.

While increasing market share, enhancing employee satisfaction, and expanding product lines can be benefits of effective business strategies, they are not the primary objectives of global outsourcing. The main driving force behind this approach is the significant cost savings and productivity gains that companies can achieve.