While reduction of costs will always be an important business objective, savings from labor costs alone can be consumed by a poorly managed process or an outsourcer that lacks in-depth knowledge of your business and processes. And as the time tested adage goes, penny wise, pound foolish.. As in any other industry, there is an entire spectrum of suppliers with varying degrees of capability and competence. There are more than 200 providers in India alone, many of which will not provide the same quality of labor and compromise other key service components to take market share based on the lowest cost.