There is one question that all companies that outsource ask? Wonder what question? Read on …
The thinking for outsourcing goes something like this. We are in the business of making widgets so why should we spend our time focusing on running our own telephone company, information technology department, or training organization. The company wants to spend its time on things that will make a real difference to the bottom line and leverage its core competencies.
Sometimes, companies go to extremes. One virtual computer company hired contractors to design and build all its computers, answer repair questions, invoice bills, and ship product. The only thing it does now is sell and maintain its remaining core competency – its brand.
The gut question being asked of suppliers or individual contractors: “What value are you giving me that I can’t get from an offshore vendor.” Every company is considering outsourcing non-core and even core activities. The key question becomes: “Should we outsource to China or some place in Asia because of cost competitiveness and high quality.” This applies to widgets and professional services. Even high value added services, such as architectural, medical and other professional services can be procured offshore.
Globalization, outsourcing, and off shoring are realities. The questions and the concessions being asked of employees and suppliers are incredible and tough. The US is broke. Concessions will be asked of everyone.
Life Lesson Earned: Do you work for a company whose products and services can become obsolescent or can be outsourced? Do you offer professional or personal services that can be outsourced or offshored? If you answer ‘yes’ to either question, what is hindering the company from outsourcing your job and you? Do you see this challenge as a risk opportunity (upside risk) or a threat (downside risk)?