Trendy ideas often don’t last. One of those ideas is that outsourcing will solve most employment problems over the long term. For example, let’s outsource our IT department to India. We can hire highly skilled, lower cost workers. With the time difference, the employees in India can work on projects during overnight hours in the US. ‘Sounds great!
In recent years, many US companies have relocated this type of work back to the US. One big reason: the cost of employees overseas has increased. A recent article listed Seven Myths About Outsourcing. The two best ideas. First, outsourcing requires tremendous effort and constant communication between the company and outsourcing vendor. Think about that IT Manager in India dealing with the VP of Technology in Houston, TX, for example. Second, you can’t have it all. Don’t expect lower costs, better employees, improved communication and zero complaints during the transition. It’s just not possible.
The Lesson: In order for outsourcing to succeed, companies must have realistic expectations and commit to constant communication.
Your Homework: Have you attempted to outsource work? Are you today? Consider what you’ve gained or lost as a result of this process. In the end, are you better off?
(Source: “Seven Myths About Outsourcing”, Wall Street Journal, 6/16/07)
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