Thursday, 31 December 2009

Outsourcing; a thing of the past?


Just time for a snippet today. I noted this article trumpeted by the BBC. Apparently companies are no longer outsourcing quite so much to India et al and are instead bringing work back on shore. The number one reason is failure of outsourcing to deliver the benefits promised; the curse of the indian snake-oil salesman?

What intrigued me though was the lack of a mention for the good old Pound Sterling. Beaten into submission by profilgate government money printing, our currency is devalued and set to fall further in 2010. This makes UK wages and costs look a little better compared to foreign opposition.

It is small reason to be cheerful if you are a manufacturer; excepting that the cost of all your raw materials is goingt o sky-rocket.

8 comments:

Babar said...

How long until Indians start dialling call centres in Newcastle and Wales to get their bank balance and arrange car insurance?

Budgie said...

One manufacturer I know imported the simpler products from China. The quality was awful, requiring re-work in the UK factory. Unfortunately the men responsible for the outsourcing did not know about this, and cited the resultant, apparently low, UK productivity as a further reason for their decision.

I have a Budgie rule for this: "The further you are distant from the actual job being done, the more your kudos and pay and the less your knowledge."

El-Kevo said...

Good observation.

Thanks to both of you for your wit and insight during 2009.

Happy New Year !

James Higham said...

The out of work UK worker will work for a pittance, won't he?

Scrobs... said...

I wish they'd outsource politics.

Put administration out to tender, and stop any of the 'revolutuionary' drivel I heard on the BBC yesterday morning..

Otherwise, Happy New Year to you Sir!

CityUnslicker said...

Happy new year to you all and I echo EK's comments.

El-Kevo said...

Silly me.

Happy New Year to ALL of you. ;-)

Jordan Barrington said...

I am glad that you have notice it. Your observation was good but I guess they should outsource their government. This topic makes sense.