Bhoo wears the thinking cap!

As if that is possible!

Second decade of outsourcing!

Posted by bhoo on November 5, 2007

Informationweek article again triggered angry comments.  There is not a single thing in the world that is “ALL” advantages and “NO” disadvantages.

The key is balance.

One angry comment calls outsourcing as “corporate prostitution”.

When you talk about “Nothing matters but the bottom line, corporate prostitution, etc”, it is not limited to outsourcing. As an example – take cell-phone contracts that ties you up for 2 years – or many many other examples.On the other hand, come to think of it – bottom-line does matter. Profits do matter.

It is another thing if a company starts losing revenue because a competitor who does not use outsourcing provides better service. Then, the company that uses globalization will suffer from bad service or products and hence lose its customers.

It is just that in-spite-of the disadvantages, there are firms that have increased their competitiveness due to outsourcing. That is the only reason outsourcing thrives.

If there is a thinking that “customer service” in a company exists because of morality or ethics, I can only call it “naive”. Companies have customer service because otherwise they lose their competitiveness and business. So, the entire “customer service” is a competitive weapon to increase profits, not an “ethics” or “moral” responsibility.

If and when that competitiveness depletes, irrespective of the ethics or morals, companies will move away from outsourcing or offshoring.


4 Responses to “Second decade of outsourcing!”

  1. Bhavani said

    Dear Bhoo,

    Happened to read your blog.Just want to express my feelings.

    Simply Xcited…………..

    You are a Thought leader and a Leader of Inspiration.

    Would become a regular reader of your blog.

    continue writing…………….



  2. Most of the time I dont post on blogs, but I have to mention that this post really forced me to do so!

  3. I always try to look at things from the customer’s point of view, and from that perspective, I may say that anyone who tell that your post is not great and very informative is wrong. Thanks for putting all this together.

  4. ofs said

    Great Comment..


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