Outsourcing Doesn't Always Save Money
from the well,-duh... dept
We've talked about this before, but I think all this focus on "offshoring" is way overhyped. First, I think that the companies that are rushing to do it are doing an exceptionally bad job thinking through what they're doing, and aren't actually saving much money. In many cases, they're simply shuffling problems around in the mistaken belief that putting problems half way around the world will somehow solve them (instead of make things worse). While the numbers game suggests that you save money, the reality is proving otherwise. A growing number of companies that rushed to move jobs offshore are realizing that it's not saving them the money they expected. The cost of managing operations halfway around the world is extremely costly (in some cases 4.5 times the actual cost of labor - nearly wiping out the salaries that are 1/5 of what they are in the US). It also tends to slow operations down, since there's a limited time period of "overlap" where decisions that require input from both areas can be made. Meanwhile, I don't think all the "anti-offshoring" protesters are doing any good either. They're simply pushing for protectionist policies that aren't necessary and will actively do damage to our ability to compete. They should just let a few more companies realize their own mistakes, let the economy pick up a bit more, and suddenly the threat of all jobs heading to Asia won't seem so likely.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Reader Comments
Subscribe: RSS
View by: Time | Thread
Peace Dividends
[ link to this | view in chronology ]
Follow the Sun
So, when Dell out sourced their tech support, I immediately noticed the differnece (and quality) of support. Now, when I have a room full of machines that need a support call, I call when India is on-line, I insist on on-site support for every unit, even if the unit only needs a BIOS upgrade or something similar (uh, that's right... the integrated NIC doesn't work, I need an entire motherboard replacment).
The average american worker isn't union inclinded, but when it comes to fscking managment when they disrespect their labor pool, we've got it all over anyone else in the world.
[ link to this | view in chronology ]
Re: Follow the Sun
People like yourself are my wonderful and do more to insure technology jobs stay here.
Thank you.
[ link to this | view in chronology ]
Re: Follow the Sun
[ link to this | view in chronology ]
Re: Follow the Sun
[ link to this | view in chronology ]
Re: Follow the Sun
[ link to this | view in chronology ]