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Is Outsourcing Losing Its Appeal?

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pocharle
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Supply Network Guru
Re: why this reverse trend
pocharle   8/22/2012 1:41:31 AM
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True but if in bringing operations back on shore, they company ends up losing moeny, thus having to layoff employees. This will cause another ripple effect on out economy.

nimantha.d
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Supply Network Guru
Re: why this reverse trend
nimantha.d   8/16/2012 11:30:50 AM
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Yes there are people who misuse company properties but that can be handled easily rather than handling 3rd party data violations. That would be a cost for the company.

Jim4007
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Outsource vs Offshore
Jim4007   8/14/2012 5:49:38 PM
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Companies outsource for several reasons, First they do not want to invest in assets that they cannot keep efficiently employed, Second they don't have the core competency to do the work at their cost target. Third, they need additional capacity.

Companies off shore as a form of labor arbitrage or to save logistics costs and get closer to their customers, or to deal with currency abd balance of trade issues,

Since the world is a dynamic place and these factors are always changing, we can exect that offshoring and outsourcng will ebb and flow in response to the changng factors and the expense and difficulty involved in moving  manufacturing locations.

 

Jacob
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Re: why this reverse trend
Jacob   8/13/2012 2:27:14 AM
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Nimantha, I agree about the risk part. But the same risk can be from inside the company also. In every company there are a certain percentage of employees which will do all sort of such things like stealing datas, technology, design etc. So there is no guarantee that we can safe guard our technology or datas, but obliviously in house works are much safer when compare with outsourced works.

nimantha.d
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Re: why this reverse trend
nimantha.d   8/12/2012 12:05:22 AM
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Well I think its not loosing as such but things are becoming a bit more commercialized where the original outsourcing has been changed dramatically. That may be the reason where you get lots of support services charging hugh amounts which makes companies to feel that outsourcing is not that worthy as it was sometime back.

nimantha.d
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Supply Network Guru
Re: why this reverse trend
nimantha.d   8/10/2012 11:50:29 PM
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Jacob true you have a point but you still have the risk of loosing data and also keep in mind that if the 3rd party company knows that this is a short term project they might try to get it indirectly. That is a risk which has to be handled with care.

nimantha.d
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Supply Network Guru
Re: why this reverse trend
nimantha.d   8/10/2012 11:48:41 PM
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Well atkipp yes it depends on how the business process is going to run and for how long. If its a short term project then outsourcing is ok.

Jacob
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Re: why this reverse trend
Jacob   8/9/2012 2:53:44 AM
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Nimantha, if my requirement is for a short while, then why should I have to take the pain? Recruiting an employee is a lengthy process. I have to advertise for the post, call them for interview, after appointing I have to fix a salary along with other benefits and perks, allocating resources for work,…. etc. if am outsourcing the same job, I have to pay only for the work done. That’s the main reason behind outsourcing.

atkipp
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Re: why this reverse trend
atkipp   8/8/2012 2:33:04 PM
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Nimantha.d: The particular customer I had, initially, been referring to only outsourced to someone they had completely trusted, because they had used them in the past for overflow. It was, also, kept in the US (even local), which is, of course, the only way it should be done.  If there is a particular piece of a job that isn't done frequently enough to justify keeping someone in-house on a full-time basis, I don't begrugde these companies for using an outside company. If the numbers say it doesn't make sense, then it doesn't make sense. If they do a particular job on a regular basis, then it would make sense to have someone in-house to do it for them.   All manufacturers are looking to do the best job for their customers, but they also need to do what's best for them, financially, otherwise they won't stay in business, hence, no more customers.  

nimantha.d
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Supply Network Guru
Re: why this reverse trend
nimantha.d   8/8/2012 10:34:44 AM
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Well Jacob just because yo do not have any resources to make your systems work as you would like to ,outsourcing is not the key. I feel you should hire employees who has he skill and then do it in-house. That way you can expand your business plus has a gurantee that the data will be in safe hands.

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