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Time to stop outsourcing? August 30, 2012

Posted by Mark Hillary in Current Affairs, Outsourcing.
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Popular technology blog Horses for Sources has launched a survey asking whether they should stop using the word ‘outsourcing’ in their coverage of the industry.

Most involved in technology outsourcing have moved on from the old days of labour arbitrage or augmentation. Service providers don’t just pitch themselves as the cheapest any longer, they position themselves as the experts in whatever they do.

Clients commissioning work from the service providers know that they are buying in expert services, usually services they could not perform in-house.

But the political rhetoric has barely changed. As the US presidential election approaches, outsourcing is still considered a dirty word for politicians and a way to score a few cheap votes by patriotically insisting that they would ban it forever.

But these same politicians probably calculate their budgets using Microsoft Excel and broadcast information using Cisco services. They fail to see that any large technology company is already working with global resource and any company starting today will consider hiring suppliers from all over the world.

It’s not that outsourcing is about shipping work off to cheap economies; it is just that the Internet has created a global marketplace. If the marketplace is global then that can create both problems and opportunities back at home, but how come the politicians rarely focus on the opportunity of small niche companies being able to reach a bigger market?

So do you agree with HfS? Is it time the industry stopped using the term outsourcing and if so, what would be better?

Horse

 

Photo by Moyan Brenn licensed under Creative Commons

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