Outsourcing isn't the magic arrow CEOs want it to be. This article doesn't really address anything important at all. Ratings are pretty meaningless. I know parts of companies that are rated at SEI Level 5, but produce some of the worst crap I've seen. They're rated well though, so they much be good.
Why doesn't someone write an article about all the times outsourcing has been tried before? How about what happened with Malaysia? How about the fact that the overhead involved in trying to manage people half-way around the world is higher than the amount they save by outsourcing? This isn't a new fad people. Sure, the people and the places change but the problems don't.
Things are different now than they were in the 80's I'll grant you, but no one seems to be drawing the comparisons. Health Care costs are rising in the US, thus possibly providing better savings when outsourcing now. However, it's not like this is a new concept and that the problems aren't well known. Let's see some hard questions asked and analysis done based on past experience!
" I know parts of companies that are rated at SEI Level 5, but produce some of the worst crap I've seen."
My dog eats food and produces shit. He does it consistenly, and he has a whole process he follows. Hell, it might be SEI level 7 based on how well that process works.
Malaysia is losing investments, on big labour intensive manufacturing jobs, to China.
But the govt recognizes that, and is at the moment transforming (at least attempting to) the country into a more services base economies.
Say all the bad things about the Malaysian govt (and i got lot to say about it too), one thing you can't say is that they like to bitch about being victimized by China.
Actually, I wasn't saying anything bad about the Malaysian government. I was referring to earlier attempts to outsource IT jobs to that country (this was in the 80s I believe). The result was that the costs were so high to try to manage people half way around the world that most of the outsourced jobs came back. IT jobs have been outsourced before.
The thing that is stupid about companies trying to save money on health care costs by outsourcing, is that by doing that, it actually drives health care costs UP for the employees who are still on it. I've always read that a big reason for our double digit health care increases is because there are so many uninsured people out there. All these uninsured people end up waiting til the last minute to get help, and then when they do, it's invariably an expensive emergency. So, when American companies lay off ma
I've always read that a big reason for our double digit health care increases is because there are so many uninsured people out there.
Actually, I think it's just the opposite. Most people have insurance or use something like Medicare and for them, the care appears nearly free. I know my deductables are very low. They're so low in fact, that I really have no incentive to shop around for anything.
The real problem is that supply is inelastic. The amount of care available doesn't change much, so increases in
Outsourcing isn't the magic arrow CEOs want it to be.
No, but massive FUD about it works pretty good. Programmers won't accept lower wages, don't like those 80 hour weeks? Play a little sitar music over the PA. That'll shake them up!
Promptness is its own reward, if one lives by the clock instead of the sword.
Rather pointless article (Score:5, Interesting)
Outsourcing isn't the magic arrow CEOs want it to be. This article doesn't really address anything important at all. Ratings are pretty meaningless. I know parts of companies that are rated at SEI Level 5, but produce some of the worst crap I've seen. They're rated well though, so they much be good.
Why doesn't someone write an article about all the times outsourcing has been tried before? How about what happened with Malaysia? How about the fact that the overhead involved in trying to manage people half-way around the world is higher than the amount they save by outsourcing? This isn't a new fad people. Sure, the people and the places change but the problems don't.
Things are different now than they were in the 80's I'll grant you, but no one seems to be drawing the comparisons. Health Care costs are rising in the US, thus possibly providing better savings when outsourcing now. However, it's not like this is a new concept and that the problems aren't well known. Let's see some hard questions asked and analysis done based on past experience!
KhyronHa ha...sure! (Score:2, Funny)
My dog eats food and produces shit. He does it consistenly, and he has a whole process he follows. Hell, it might be SEI level 7 based on how well that process works.
But its still shit.
Re:Rather pointless article (Score:2)
Malaysia is losing investments, on big labour intensive manufacturing jobs, to China.
But the govt recognizes that, and is at the moment transforming (at least attempting to) the country into a more services base economies.
Say all the bad things about the Malaysian govt (and i got lot to say about it too), one thing you can't say is that they like to bitch about being victimized by China.
Re:Rather pointless article (Score:2)
Actually, I wasn't saying anything bad about the Malaysian government. I was referring to earlier attempts to outsource IT jobs to that country (this was in the 80s I believe). The result was that the costs were so high to try to manage people half way around the world that most of the outsourced jobs came back. IT jobs have been outsourced before.
Re:Rather pointless article (Score:1)
I am just trying to use it to make the point that even "outsourced" jobs don't stay permanent : everyone has to constantly evolve to deal with change.
Health Care costs... (Score:2)
Re:Health Care costs... (Score:2)
Actually, I think it's just the opposite. Most people have insurance or use something like Medicare and for them, the care appears nearly free. I know my deductables are very low. They're so low in fact, that I really have no incentive to shop around for anything.
The real problem is that supply is inelastic. The amount of care available doesn't change much, so increases in
Re:Rather pointless article (Score:1)
No, but massive FUD about it works pretty good. Programmers won't accept lower wages, don't like those 80 hour weeks? Play a little sitar music over the PA. That'll shake them up!