Companies outsource primarily because of the dramatic arbitrage in the cost of labor between the developed world and the developing world.
For example, the National Floor Level of Minimum Wage in India is currently 160 Rupees per day. However, this minimum wage is non-statutory and state and local governments have their own minimum wages for different types of workers. Furthermore, many illiterate or unorganized workers are taken advantage of on a regular basis and work for far less than the minimum wage. For example, many household workers regularly earn less than 20 Rupees per day.
Of course, a Western company that decides to outsource to a country like India cannot take advantage of these minimum rates because workers in this price range are generally illiterate and uneducated.
However, rates will still be much more affordable vs the Western world. For example, a fluent, English speaking virtual executive assistant might cost roughly $6 a hour. A top tier software developer who graduated from IIT might cost $60,000 vs $150,000 to $200,000 in the U.S.
The Philippines is another low cost destination for Western companies to outsource to. Like India, the minimum wage in the Philippines varies depending on the region. The minimum wage can be as high as 537 PHP per day in metro Manila, or just a little over $10 per day as of this writing. This minimum wage of just over $1 per hour is fairly common as a starting salary in call centers across the country.