21 Dec Outsource My Life
Outsourcing is all the rage nowadays. Work is outsourced on a global scale. I have even heard of friendship being outsourced when relationships seem to take a toll on one friend. Product production may be outsourced in whole or in part. Is there a real benefit to outsourcing?
If you purchase Web Design or Digital Marketing services from an offshore provider, then you or your company may save money initially, but may conversely pay big time later on. Every person needs to earn a living. While professional service providers may reduce their prices to gain new clients, they are only willing to do when they have few or no clients. It is in order to become a competitive company that business will offer a discounted rate on fees. Once the company is stable and has a credible roster of clients the company will likely bill at rates that are the norm in the industry.
The same scenario could be said to be accurate for manufacturing. Big automotive companies are well known to outsource the production process for building a vehicle. Parts will be made individually in countries where unions are not strong or non-existent. Wages will likely be lower when no union is present to adequately represent the needs of workers. Therefore, parts will be produced at lower cost than if made locally. The cost of materials may or may not be cheaper if outsourced. Workers will be the main focus in this exploration of business practices.
Eventually less developed countries, which lack a strong union presence, will become more developed and the cost of wages will grow to be on par with local standards. This theory is applicable to all types of services, including production of parts and onsite complete manufacturing of products. There must a reason why only the manufacturing of parts is outsourced, while the completion of the production process is retained locally. Perhaps because the standards for a quality product are only ensured by local workers and local technology, using exemplary quality control practices.
To outsource a production process and / or a service for Web Design and Digital Marketing is a temporary fix to a broken issue of project management on a global scale. If salaries of top executives were perhaps on par with their work responsibilities, then more money would be available to be used to support the salaries of local workers to produce quality products in the country where the products will be purchased. The same model could be applied to any service.