Outsourcing

Circa 1984 I read an article in a Seattle First National Bank house newsletter by a VP for international business at a major railroad who claimed cheap labor was not a factor in international trade. I was astonished at the claim at first, then I digested his argument, compared it to what I learned as a buyer overseas for a small import company, and realized the fellow was right. It took me a few years to realize upon what criteria we do go overseas, and in time it because clear the main reason was "cheap management."

In this blog post a CPA weighs in with big biz outsourcing witness that I offer for your consideration. While I agree with all she says, I would add the implicit argument that I think should be explicit: managing the americans described by her costs so much more than managing people overseas. Yes, the workers lack of productivity is one problem, but the requirements loaded on managers means at once they charge too much to do too much, and he who would be a first rate manager rather quits the field than waste his time in management. If you think USA has first rate management, please look at our financial sector, our manufacturing sector, our service sector, our medical sector, the debacle in Iraq and Afghanistan... O! I tire of making such a long list, but let me add our politicians who rush legislation through without even reading it.

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