Chat with our sales team
Whole Network Most Recent TOP10 Basics Best Practice Intelligence Resources

 

Germany in trouble?

Filed in archive Outsourcing Pros and Cons by Creative Weblogging on July 21, 2004

Do you remember the often cited McKinsey study? the study outlined how outsourcing creates value for American GDP? As the study says the balance for outsourcing done by American firms is $1.13 positive for every dollar spend. Well you can argue about these findings but now The Economist cites another study about outsourcing in Germany. Because of the different outsourcing destinations (Eastern Europe instead of India) German companies actually save less.

Moreover there is another problem:

"The biggest difference emerges when workers who have been fired in the offshoring process look for new work. In America, McKinsey estimates that around 70% of workers ousted in favour of offshore alternatives find new work within six months. In Germany, however, the re-employment rate is only around 40%. The reason? Above all, Germany's thicket of labour laws, which discourages firms from hiring workers who may prove a hard-to-shed liability. Admittedly, these same laws---which are increasingly under fire (see article)---also make it harder for German firms to shed workers to take advantage of efficiency-enhancing offshoring. The lesson: offshoring may be an easy target for politicians, but if they have flexible labour markets it may actually be a good thing, not just for big firms, but for everyone."


Advertisement


Permalink: Germany in trouble?
Tags: germany  outsourcing  trouble  best  digital  germany+trouble  hedge+funds  best+practice 

Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/2571



Advertisement


Advertisement


CW ToolbarInstall
RSSrss   | See all blog subscribe options
Googlegoogle   |   What is RSS?
Yahoo!yahoo
AddthisAddThis Feed Button
BloglinesBloglines
Newsletter
Advertisement - Book yours here.

Use our search feature to look for other interesting posts

Just this blog Whole network
Blue Nile, Inc.
Advertisement -
Book yours here..


 
  • Would you like to have a new interactive marketing channel for your company? Learn more about Sponsored Blogs with Creative Weblogging. See how we helped companies like Weblin and cellity reach their goals.
  • Would you like to reach millions of blog readers every day? See you banner on hundreds of blogs with TierOneAds? Stay in control measuring conversion in real time. Register now.
  • Would you like to make more money blogging? Use TierOneAds a new platform that allows you as a blogger to set your prices per impression. Register now.
  • Do you have a blog with more than 50k page views from the US? Let us market your blog and earn great fix payments and bonuses.
  • Would you like to see your text link here? Let us know!
Advertisement
Book yours here.



  • Testimonials

  • 'Great blog. Instead of useless Internet surfing, I read your blog for snapshots of recent information.'

    'I was impressed.... Keep up the good work.'

    'This blog offers a balance uptake in outsourcing'

  • Other blogs in the same channel in the Creative Weblogging Network

Advertisement -
Book yours here..






Advertisement - Book yours here..
 
Tagcloud: Basics Believe It or Not Best Practice Intelligence Opinions & Insights Outsourcing Advisors Outsourcing Issues Outsourcing News Outsourcing Pros and Cons Outsourcing Suppliers Resources Sponsored Post The Lighter Side of Outsourcing