A lot of companies are jumping into the outsourcing wagon because of one yet major reason: cost-cutting. One example of such company is New Zealand's phone giant, Telecom.

The company recently moved 130 call center jobs in Manila and according to reports, their outsourcing move would not stop there. The company is currently conducting an internal review and the company is more likely to result in "redundancies" though the actual number has not been disclosed.

Telecom mentioned that one of the reasons why they are aiming to achieve their cost-cutting goal is because of the growing competition in the telecommunications industry. The "convergence" of fixed, mobile and data services added to the stiff competition thus resulting in their decision to outsource.