Saturday, September 30

Outsourcing

I've been thinking about why companies nowadays try to outsource as many things as they can.

I think that the answer is simple. By outsourcing, companies get to work with companies instead of employees. Unlike employees, companies don't get depressed, they don't take maternity leaves, and they don't take sick leaves. Companies don't stay home when their kids catch a flu, companies don't have unproductive hangover days, companies can't give excuses. Outsourcing saves money.

Fair enough. But companies, vis-à-vis employees, also lack loyalty, enthusiasm, improvement ideas, and passion. Now, how do you put a price on those things?

3 comments:

pastoriK said...

What an excellent thought! You just might be right. Probably not just. You're dead on target I believe...

Ilja said...

It's important to understad that people go through a lot of work to get better profit. I just noticed this article: http://www.designnews.com/article/ca6372265.html
where one small company describes their project of outsourcing the physical production to China. They had problems and all, but they are happy as they get their products produced a lot cheaper in there.

Matti said...

Yes indeed; offshoring often brings in very clear savings. On the other hand, local outsourcing--like firing your janitor and taking on a caretaking company--often means just getting rid of the burden called employees.