Money Matters

Filed in archive Opinions & Insights on May 21, 2007

Money is a big factor in outsourcing especially with companies who expect that outsourcing would be their miracle in their business.

The problem here is that many companies expect that since they are paying less, their chance of a successful outsourcing venture is a guarantee. This is not the basis of a worthy outsourcing venture. The expenses in outsourcing should be because of reasonable factors and should also consider the input.

Here is one piece of advice given by Judith P. Guthertz in terms of evaluating the full cost of outsourcing:



"Consolidation and outsourcing must be approached very carefully and examined fully. It is not the panacea that businesses, including the media, would have you believe. Just because it may cost less doesn't mean better services, or that our government will be improved. Public school cafeteria services and mass-transit bus operations are two outsourced areas that are more expensive to our taxpayers than they were prior to outsourcing."

Now, if only companies would take this to heart.