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Myths about outsourcing in general

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  • #16
    Re: Myths about outsourcing in general

    Kudos for dispelling some of the myths in your list.

    The truth is that whether you like outsourcing or not, it is a necessity to survive and therefore it is only a matter of time before more companies outsource their jobs.

    One of the main misconceptions which I have often come across when it comes to outsourcing is that outsourcing leads to quality degradation, which I have personally experienced is false.

    Sure enough if you do not have quality checks, quality would decrease but if you are able to provide strict quality guidelines to your manufacturer you can be sure that their would be no quality degradation.

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    • #17
      Re: Myths about outsourcing in general

      Outsourcing is not concerned with the wellbeing of workers, whether from the places it has moved from or to the target location it is moving to. The ultimate consideration is the profit margin.
      The reason for the move in most cases, is to eliminate reasonable worker compensation and fringe benefits. In some instances, location advantage may be a factor but higher profitability is usually the dominant factor. This is the reason why many companies may suddenly pack up and leave an area where they were able already enjoying the low wage scenario to move to a location where they are able to enjoy even lower wage costs. In some instances to places where there is involvement in child labor.

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      • #18
        Re: Myths about outsourcing in general

        Originally posted by explorerx7 View Post
        Outsourcing is not concerned with the wellbeing of workers, whether from the places it has moved from or to the target location it is moving to. The ultimate consideration is the profit margin.
        The reason for the move in most cases, is to eliminate reasonable worker compensation and fringe benefits. In some instances, location advantage may be a factor but higher profitability is usually the dominant factor. This is the reason why many companies may suddenly pack up and leave an area where they were able already enjoying the low wage scenario to move to a location where they are able to enjoy even lower wage costs. In some instances to places where there is involvement in child labor.
        Sadly this is true which is why I always say that it is the government's responsibility to keep their citizens from abuse while at the same time still making it attractive for companies to want to hire them. It is a tough thing to balance as if there are too much restrictions and the standards are too high the people will lose on the opportunity and if if they are too low then the company will take as much advantage of that as possible or else just move onto somewhere else that will provide such a thing. Very delicate balance but unless the people have something unique to offer then someone else will just fill the spot.

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        • #19
          Re: Myths about outsourcing in general

          I don't believe in the notion of the unfettered free market and it is true that a lot of outsourcing involves saving money without having to deal with workers who expect a certain standard of living. However, the standard viewpoint of outsourcing as something that the big nasty corporations are doing to destroy American workers and exploit third world labor is way to simplistic and often false.

          Outsourcing creates many jobs, usually more highly skilled jobs which are in demand. I do remember being frustrated when a fairly standard data entry job disappeared because the company wanted to pay Indian workers $2/hour for the same work, but the people who made the deal and the managers who dealt with the language and cultural differences probably made up much of the difference.

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