Re: Isn't this illegal? Immoral? @ Rob
Your ignorance is extraordinary.
1. one can not just reduce wages to the lowest common, international denominator if the employees are to be able to afford to live (eat, be housed, care for children, provide the market for your goods) in their country or area of residence. This is illogical, kills the local market that no longer has the wherewithal nor need to buy ever cheaper, usually inferior services.
2. this damages the firm's home country in terms of lost taxation and rising social costs for the support of the sacked workers.
3. in turn, the infrastructure that supports the company (legal, security, communications) is damaged as it becomes unsustainable with the loss of tax money to pay for it.
4. perceived savings are rarely realised overall as reduced service standards annoy customers; knowledge is lost; the overseas firms gain the knowledge and replace you; even overseas wages and infrastructure costs do rise, often faster and less predictably than in the home market; remote management is neither free, nor simple, nor fully effective. In every IT firm that I have worked, where "offshoring" is done, an amazing number of the "offshore" workers are brought "on shore" for various periods, each individual getting lower salary, but also needing airfares, accommodation, home leave, increased communications costs and still needing desks, insurance, space, equipment and still leaching knowledge away as they can not stay for ever, usually no longer than two years. Quality of documentation, service management and so on all drop, especially when different time zones are in play.
5. Most importantly, to me: business needs to cover its costs and make some profit; but its primary purpose in the larger scale of things is to be part of society, provide services and work for the inhabitants. A country with highly profitable business and poverty, disease and unemployment is a failed country, hardly indeed a country, and tends towards social collapse. Or of course, just replace us all with extremely profitable robots filling warehouses with goods for other robots and a tiny minority of "businessmen", wandering from (foreign) expensive bolt hole to bolt hole in transport systems insulated from the hoi polloi, like old fashioned, colonial expats. in HK and parts of Africa, neither knowing nor caring about the local inhabitants, culture, language nor even aware of where they are - a dying breed until resuscitated by modern, international "business", in a worse, more insidious, exploitative way than ever.
I wonder what sacrifices the senior managers of such firms are making, many of them getting bonuses, on top of generous salaries, that would cover the claimed savings.