The economic advantages of outsourcing can be huge for business owners. It comes down to one of the most basic concepts of economy, comparative advantage. For those of you who haven’t studied for this week’s exam, here is a brief overview of the theory:
Comparative advantage is an economic theory about the potential gains from trade for individuals, firms, or nations that arise from differences in their factor endowments or technological progress.
The overall concept isn’t hard to grasp… different groups have different abilities and resources. These “advantages” make them “comparatively” better at various tasks. But, here is the important part, “potential gains from trade for individuals, firms, or nations.”
Outsourcing is simply a method of making the best of comparative advantages, but so often outsourcing is associated with sending jobs overseas. As you can see, however, comparative advantages can also exist between firms. So it is with Ohio Valley Goodwill’s talented outsourcing service in Cincinnati, GoodwillB2B. We allow business owners to access our large workforce of skilled assembly, kitting, packaging and fulfillment professionals while also creating jobs right here in Cincinnati, Northern Kentucky and Southeast Indiana.
The next time you think “outsourcing,” think Ohio Valley Goodwill!