As McDonald’s is working on a turnaround program, improving its menu and using technology to make services more efficient. The company is also making improvements to its compensation and benefits package for U.S. employees, so as to retain trained staff who can provide better service to customers. Reports suggest that, while higher wages should lead to higher operational cost, the company is now looking to outsource support jobs to cheaper regions such as India to reduce costs. As part of its $ 500 million cost savings plan, to be implemented by the end of 2017, the company is looking to move support functions including accounting and other services to India. While this will lead to job cuts in the U.S., it should impact McDonald’s profitability and valuation positively as the company achieves its cost savings plan through this initiative
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