USA is one of the most economically established countries in the world. With an estimated GDP of $13.81 trillion, USA maintains top position. A large number of USA’s GDP belongs to the service sector which is 78%. USA witnessed a continuous growth in private sector and small businesses for almost 11 years; with an average growth rate of 3.8%- the highest ever in the history of this country. Like its height in GDP, USA does have the best per capita income which is estimated to be $45,850.

Ever since the recession started in the late 2008, USA’s small business sector has been bearing a crisis situation. Many of the giant investment groups declared bankruptcy which resulted in even more pressure on small businesses, as their investment crashed with them. Now to stay in the market, small business sector is working out to cut their cost of operations, and most of them are finding outsourcing as their way out.

Since USA maintains a high ratio of GDP to per capita income, cost of doing business in USA is very high also. What outsourcing does is that; it utilizes the labor arbitrage, which the under developed economies have on offer. For example, GDP per capita income of India is only $2,659, which is far less than USA’s $45,850. That makes a huge difference in salary structure saving cost almost by 70%, while at the same time; a high number of professionals from these under-developed countries are equipped with international qualifications, certifications and experience.

Many small businesses have already utilized this opportunity by outsourcing services like:

1. Marketing (call center)
2. Accounting and Finance
3. Investment Research
4. Software and Graphics Development
5. Content Development

There are many other reasons for which companies are outsourcing except for labor arbitrage, like increased efficiency, reduced risk margin, control over capital and many others. There are many BPO firms providing outsourcing services to USA clients such as iSource Biz.