Comments

It seems Like the writer of the this article believes in anti-outsourcing.
Every Business process that is outsourced has three aspect - Strategic,Tactical & Transactional.
It entirely depends upon an organization to outsource from what aspect.But like in latest trends of PO, every process that is outsource is either tactical or transactional in nature.
This give any company an opportunity to focus on there strategic part(where there core capabilities lies).
Like wise benefits of outsourcing are huge.

Posted by: jeet on August 19, 2008

Indeed a very useful article for the people associated with manufacturing business. http://outsorcerer.com/blog/?p=46 too may be a good source to know some strategies for reducing manufacturing cost further through outsourcing.

Posted by: Shubhranshu on August 22, 2008

Good points made in the article - too much outsourcing is a bad thing because you can lose the drive for innovation (your suppliers will be doing it) and competitive advantage. If a company does a lot of outsourcing, what are they in business for? Outsourcing should only be considered a temporary fix and used for strategic short-term reasons if possible.

Posted by: Glenn Whiteside on August 25, 2008

Outsourcing is a tool and an option for any business. How that option is used or abused will impact the ability of the business to survive and grow in the long ter.

Problem is when outsourcing results in quick gains (to make the quarterly number) at the sacrifice of sourcing core competences or strategic processes.

Posted by: Kaizen Man on August 25, 2008

Dear Keith,

After being in the industry for over 20 years working for on the top five largest corporation in the beverage industry, I have seen patterns changing in full circle. The current outsourcing pattern seems to be the latest and, in my opinion, is directed to short term results, which seems to be also the trend in our corporate world. We talk about �long term� but we act short term, driven by capex and investments that impact quarter results� If we really want to build for the future, we need to start walk the talk and act long term and invest in our internal capabilities, both human and manufacturing. Shareholders should understand that and support that concept because it is in their best interest.

Thanks

Yousef Zaatar
CarlyleCompany@aol.com

Posted by: Yousef on August 25, 2008

Send this to every reprint service available. We have been shooting ourselves in the foot for 20 years,and now it is starting to hurt. One would think a society would get it (the lesson) but I am afraid the separation between the cause and the effect may be separated by too much time. Only experience can show the defect, and to many decision makers don't have experience.

Posted by: Phil Buckley on August 25, 2008

This article is right on in every way, and some of the opposing responses just go to show what happens when we leave these decisions to the business and accounting people instead of those that have an understanding of how the business works on the plant floor and in the R&D and engineering departments. This needs to be a long term, wholistic decision, not one based strictly on maximizing short term profits for the stockholders. I feel sorry for my childrens children because if this trend continues, it will be the end of our great nation, and China will become the world's new superpower.

Posted by: Jeff on August 25, 2008

The article is correct. How much more evidence do we need to see that China and India are now trying to push us around because they CAN. And we did it to ourselves. Further these countries are using the lure of cheap labor and currenct manuipulation to build their technological (and even miltary) base by requiring that the best practices we have are revealed to their manufacturers in order to close a "partnership". Last point is that when you start manufacturing things every day you learn as you go- no manufacturing, no learning. All too often (though not always) the primary dirver of outsource decisions is short term profitability, and that mindset is costing us dearly. NO great country in history ever consumed its way to wealth and power.

Posted by: Wes PRais on August 25, 2008

Outsourcing is just a continuing direction that most North American companies are going. Philosophically our industries have very impatient and short term driven management styles that tend to result in excessive stresses and self-inflicited long term failures. The benefits of short term do not come close to offsetting the long term losses for our country and children. Our obligation is to sustaining our country and future first and helping others after that.

Posted by: Paul Zepf on August 25, 2008

It's a given that businesses have no national boundaries and will always seek the lowest costs. Countries must understand the effects of outsourcing relative to the long-term sustainability of their citizenry and put a premium on imports to effect this sustainability.

Posted by: Andy on August 25, 2008

Outsourcing is not the problem. The issue is really abdication of responsibility. Only an idiot outsources to anyone without rigourous checks but that's exactly what some companies have done. Greed and complacency overcame common sense.

Posted by: Joani on August 26, 2008

This is a typical CANADIAN thought which is conservative, narrow-minded and isolated.

I wonder how much you are aware of GLOBALIZITION, and how many countries you have visited and lived or worked?

It is useless to be fearful or jealous.

Be positive and smart to find solutions rather than complaining.

We'd better foresee the trend of industry and seek potential opportunities.

Keep in your mind, business flow is always duplex, and pay more attention on how to develop new products and marketplaces, that is only way to keep in a win-win situation.

Good luck.

Posted by: Richard on September 3, 2008