Analyzing Factors That Can Attract Outsourcing Production to Tanzania

Abstract

In recent year there is huge changes in value creation mode for most of conglomerate companies, there is no more labor intensive production process but high capital and digital tech-oriented. Labor cost is very high in developed country where most of this companies are located, so most of them tend to shift to underdeveloped and developing countries like Tanzania where though they have other challenges like low technology, insufficient infrastructure but they tend to offer low cost on labor cost as compared to developed countries. The paper was intend to find supporting evidences on what exactly factors would influences companies to outsource production to Tanzania. The results was Tanzania as any developing country has bright future on skilled, semi-skilled and unskilled labor, promising infrastructure development, low cost of production, access to new market, favorable government policies and abundantly raw material for production.

Keywords: outsourcing, production, Tanzania

DOI: 10.7176/JESD/10-4-09