Global outsourcing to take back seat

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Posted: Saturday, Jan 31, 2009 at 1641 hrs IST
Updated: Saturday, Jan 31, 2009 at 1641 hrs IST

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Houston: A US-based law firm, in its recent report, has pointed out that demand for global outsourcing will take a backseat in coming years as the economic troubles has hit the industry hard worldwide.

The report from law firm 'Morrison Foerster's Sourcing Practice' points out that firms that negotiated outsourcing contracts in the past five years "could not have possibly anticipated economic upheaval on the scale that we are witnessing today".

As a result, those outsourcing contracts may need to be re-structured to better match desired costs and services levels, the report says.

There may be opportunities to relax certain service levels in those deals in the current market that could provide cost savings or in some cases, there may be some services that could not be handled in-house during a busy economic time, but during a recession could easily be taken back in-house.

Various services and functions within companies will continue during the ongoing global recession, but for US companies, the rate of outsourcing may slow slightly and more companies may take a closer look at their existing outsourcing deals for cost reduction opportunities.

The report also says that as threats of terrorism remain a concern in many global markets, companies will re-visit their outsourcing decisions with an eye towards risk management and business continuity, which could also lead to the adoption of more on-shore solutions.

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» Economy in crisis

Posted by bhattathiri on 2009-02-01 17:34:46.806045+05:30
The reasons for this sorry state of affairs are not far to seek. The Western idea of management centers on making the worker (and the manager) more efficient and more productive. Companies offer workers more to work more, produce more, sell more and to stick to the organization without looking for alternatives. The sole aim of extracting better and more work from the worker is to improve the bottom-line of the enterprise. The worker has become a hirable commodity, which can be used, replaced and discarded at will.Thus, workers have been reduced to the state of a mercantile product. In such a state, it should come as no surprise to us that workers start using strikes ( gheraos) sit-ins, (dharnas) go-slows, work-to-rule etc. to get maximum benefit for themselves from the organizations. Society-at-large is damaged. Thus we reach a situation in which management and workers become separate and contradictory entities with conflicting interests. There is no common goal or understanding. This, predictably, leads to suspicion, friction, disillusion and mistrust, with managers and workers at cross purposes. The absence of human values and erosion of human touch in the organizational structure has resulted in a crisis of confidence.Western management philosophy may have created prosperity – for some people some of the time at least - but it has failed in the aim of ensuring betterment of individual life and social welfare. It has remained by and large a soulless edifice and an oasis of plenty for a few in the midst of poor quality of life for many.Hence, there is an urgent need to re-examine prevailing management disciplines - their objectives, scope and content. Management should be redefined to underline the development of the worker as a person, as a human being, and not as a mere wage-earner. With this changed perspective, management can become an instrument in the process of social, and indeed national, development.Now let us re-examine some of the modern management concepts in the light of the Bhagavad-Gita which is a primer of management-by-values.

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» Well said.

Posted by Smali on 2009-03-08 07:41:55.865552+05:30
Well said..

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Global outsourcing to take back seat

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