Polish companies outsourcing work to other countries
Warsaw, Poland November 3, 2006. Companies in Poland have found that it is less expensive for them to outsource some of their production to China and the Czech Republic. They are maintaining the more complex work processes in Poland and outsourcing the simple tasks to countries where they can get the work done cheaper.
Even though the wage scale of Polish workers is low, the additional costs of labor experienced by companies operating in Poland can be as much as five times the amount paid to the employee. Because of this Polish companies have found that it is more efficient for them to outsource their work to avoid these extra cosst.
The Polish government has expressed concern that the outsourcing of work to other countries will reduce the requirements for workers in Poland. They see this outsourcing as offsetting some of the gains made in the employment market that are the result of new investments by foreign companies who are coming to Poland because of low costs of manufacturing. Likewise, if Polish companies do this, foreign companies may do the same.
That a company like the Polish appliance manufacturer Zelma starts sending work abroad is not an insignificant matter. If this trend becomes popular among Polish companies, the Polish government may have some reason to take seriously the necessity of changing the labor code and reducing the costs levied on Polish companies when they hire people to work for them.
