Because the offshoring trend is still so new, buyers are in a fix determining how much to pay for what service. In this context, I read a very insightful article by Alexa Michael in Financial Management, that discussed among other things, how services are priced in the financial/insurance sector. Although some of his suggestions may be specific to the FAO industry, a bulk stands true for any kind of outsourcing. Read more
Writing for International Trade Theory and Policy Steven M. Suranovic, said that the theory of comparative advantage in economics mandates that two countries will find it beneficial to trade with each other in items that they can and do produce at home, if the same can be produced more cost-effectively across the border! Read more
Recently Financial Post carried a news mentioning that The Toronto Star has asked its entire unionized and non-unionized staff to take voluntary severance packages as the newspaper is toying with the idea of contracting out most of its editorial and production functions. Read more
A report from the Center for Research in Innovation and Competition in the University of Manchester concludes, “Firms, even large multinational corporations, can no longer expect to be totally dependent on their in-house research and technology resources to maintain innovative performance.” Read more
The winds of change have begun to blow. Two highly successful industry leaders, or shall we say thought leaders, have been asked to put aside their private portfolios and assigned cabinet rank in the Congress-led union government, to steer two ambitious government projects. Read more
This could actually be a win-all for all. As a halfway compromise between on and offsite development, homeshoring can be the next big survival option for the downturn. Read more
Selecting an offshore vendor who best meets your business needs is perhaps the most difficult decision you make as an outsourcer. There are at least a hundred issues to be sorted out before a deal can be struck. Read more
Desperate situations often call for desperate measures.
So while I do understand the angst that prompts a rookie ex-programmer like Virgil Bierschwale to start something like where he keeps venting his spleen at the American CEOs who continue to lay off employees in order to stay above the water (Bierschwale even has a “Wall of Shame” (I would call it a breast-beating forum) for them on his website) —- the fact cannot be brushed aside that outsourcing as a business model may not just survive, but even thrive in a depressed market. And, there is an economic justification for it.