by Mike Masnick

Shocker: Outsourcing Often Not So Good For Companies

from the yeah,-like-we-couldn't-see-that-coming dept

We've been accused a few times of being supporters of outsourcing (offshore or not), which isn't particularly accurate. From the very beginning of the hype surrounding outsourcing, we've said repeatedly that outsourcing is very often a bad decision for a few reasons. First, it's often not about fixing problems, but about moving problems somewhere else -- which often makes them worse, because you have less control over them. Second, moving core services outside of your control can give the company less flexibility down the road. Also, we'd been hearing all sorts of reports (especially with offshoring) about how it paralyzed decision making. With the time difference you had a "one decision per day" system, since each move would have to bounce around the globe. It appears that new studies are supporting this, pointing out that many companies that go with outsourced solutions regret it. They don't save any money, the quality goes down and there are various other problems created by outsourcing. Of course, that said, there's still no reason to put protectionist measures in place. If companies want to make bad decisions -- that's for their management to decide to do. There certainly are some situations where outsourcing and offshoring do make sense, but the mass hysteria on both the pro and con side over the past couple of years has clearly been overblown.

Reader Comments

Subscribe: RSS

View by: Time | Thread

  • identicon
    Mike Die, 19 Apr 2005 @ 2:19pm

    Outsourced Employees vs Outsourced Call Centers

    I've had good experience ( Labor Assistance ) with dedicated employees that are outsourced vs the typical call center type of outsourcing. Having "more or less" control of your remote employee is the best way to get that extra help instead of generic call centers where the employees seem to fluctuate frequently.

    reply to this | link to this | view in chronology ]

  • identicon
    Frederick, 20 Apr 2005 @ 3:01am


    The emotional response to offshoring is partly due to the differences in the Indian (etc) way of competing. The Japanese made original products (cars and electronics...) and fought as companies on the world markets, generating respect to counter the economic loss. The Indians (etc) compete by renting individuals, and this does not generate respect.
    The Phillipinos compete by renting individuals also, but not in the high-tech area.

    reply to this | link to this | view in chronology ]

  • identicon
    Loan Modification Processing, 8 Sep 2010 @ 7:13am


    Well said, outsourcing often not so good for companies. I am agree with this topic.

    reply to this | link to this | view in chronology ]

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here
Get Techdirt’s Daily Email
Use markdown for basic formatting. HTML is no longer supported.
  Save me a cookie
Follow Techdirt
Techdirt Gear
Shop Now: Copying Is Not Theft
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Report this ad  |  Hide Techdirt ads
Recent Stories
Report this ad  |  Hide Techdirt ads


Email This

This feature is only available to registered users. Register or sign in to use it.