The previous post stated....
"I am posting this on behalf of an ex-colleague. She works for a Financial Services company that outsources almost everything that they do. They have grown quickly and now have new staff that are not experienced in managing relationships with the outsourcing companies."
So here is my question..(well it turns out to be three questions really)
How much of an organisation's business activity can ethically be "outsourced"?
Is it ethical to outsource activities to another continent just because it is cheaper?
If an organisation outsources lots of its activity (especially where there is a clear inadequacy of management of the outsource providers) where does the customer service "buck" stop?
and finally...
have I got too much time on my hands!?
5 Responses
how much can be outsourced…
Hi Rus
I would say it depends on the business – I would say up to 98%
Take a person that has an idea – they outsource the prototyping, and then the customer market testing. then the outsource the manufacturing, the website development and the drop shipping… what is left??
Isnt franchising an extream form of outsourcing?
outsourcing is essential for a company to grow with limited resources – the only firms that don’t outsource are those that are cash rich!
good point, Mike
I see your point, there are certainly areas where it is pretty much the only way to go, I simply hadn’t thought of that sort of arrangement as "outsourcing", but a supplier relationship. Almost all businesses rely on suppliers, think of the car industry (yes, I know we barely have one any more) Vauxhall don’t actually make 80 something % of the components they build your car out of, but Vauxhalls remain responsible when a component of your car breaks under warranty, whereas Lloyd’s TSB Bank totally wash their hands of anything that relates to Lloyds Bank Loans as it is a "seperate company".
Slightly different experience…..
DOH!
Sorrym i did include paragraphes but it has not converted them! 🙁
nail and head
Hi Ryan
you have hit the nai on the head~it is about the balance;
*the shareholders benefit because it reduces overheads
*the staff benefit because it allows them to concentrate on more valauble service to customers
*customers benefit because it provides a better/cheaper service
*mankind benefits ‘cos it spreads the wealth around.
****win/win/win/win
As opposed to
Shareholders benefit because its cheaper
Staff are screwed because they lose their jobs
Customers lose out because of dubious quality of the provider
Rus
http://www.coach-and-courses.com