Value Will Be King
Filed in archive Outsourcing Issues by Gary Zeiss, Esq. on October 08, 2008
Photo courtesy of iStockphoto, David Parsons
In recent years, outsourcing and offshoring was all about labor arbitrage - reducing high-cost headcount with offshore headcount at some multiplier. Theoretically, the idea made lots of sense, but survey after survey have shown disappointment in the overall cost-benefit ratio, missed targets and business problems exacerbated by long "supply lines" (if information is the supply, communications is the supply line).
After the "fire" that is the financial crisis ebbs, the outsourcing world will change. Even Forrester's own John McCarthy has said that the scale of the crisis has rendered all previous studies, including their own, "redundant. Companies that fed upon maintaining these inefficiencies will die - they are the "dead wood" of outsourcing. The "strong trees" will survive, and many new "shoots" will spring up. The most successful of those shoots will offer true value that exceeds their costs.
Permalink: Value Will Be King
Tags:
financial crisis value outsourcing 2008 financial+crisis yours+here advertisement+book
Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/135633