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I think SD has it right. I have seen similar outsourcing and it creates alot of economic savings. No more pensions, workers compensation, unemployment insurance, health insurance etc. The higher rates are more than offset by the unseen (to the employee) costs of employing someone.

But more importantly, it creates a flexibility that wasn't there in the past- and that is where the unseen savings come in in terms of increased productivity for less cost.

The downside is on the worker of course. But the company can run into to trouble if the functions outsourced are beyond routine tasks.

T. Allan
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