dispatches from the new world of work

PSF: Outsourcing Close To Home

"Outsourcing" is usually associated with moving tasks previously done by US workers to other countries.

This morning, in a workshop with a room full of CEOs, the discussion turned to outsourcing. But, instead of talking about moving jobs offshore, most of the CEOs said that in the last few years they had outsourced many tasks to companies nearby. Maintenance of truck fleets, accounting, IT, HR—the real outsourcing happening in America is using your neighbors' expertise to help you thrive.

This is exactly what Tom was talking about 5 years ago in his Professional Service Firm50 book—whatever task your department does for your company, there is an outside company ready to prove that they can do it better, for a fee.

Steve Yastrow posted this on 11/10/04.

Comments

Freeman, thanks for the comment, but I didn't, in any way, mean my post to be a "Buy USA" plug. In fact, I think there's nothing wrong with outsourcing to companies overseas if it makes sense for your business. I just think we're missing the real story of outsourcing when we look at it only as outsourcing to foreign companies.

The more interesting issue, to me, is how companies are finding the right talent to do the right jobs, even if they don't give that talent a W-2 form. Why not use the accountant down the street if he can do a better job than the guy who's been snoozing in a cubicle in your office for years?

Posted by Steve Yastrow at November 10, 2004 8:50 AM

Never mind what Tom was talking about five years ago. As I re-read 'A Passion for Excellence' and hum its people-customer-innovation mantra, I read of Marks and Spencer, one of the book's exemplar companies. It finds itself admitting the following on BBC News Online in the wake of a loss of Â£30m in profits in the third quarter of this year compared to last:

(CEO Stuart) Rose said M&S needed to talk to its customers directly to get a clearer grasp of what they wanted.

"I don't think we have really had a full understanding of who our customers are, what turns them on and what they want from us," he told BBC News.

"We have been relying too much on hearsay, too much on pure research and not enough on actually talking to them."

This Mr Rose describes as going back to basics; in other words, the naive customer listening Tom preached until he was hoarse close on twenty years ago. It seems that even companies that appear to have got it need to check (daily?) to make sure they still have it.

Posted by Phil Lynch at November 10, 2004 9:09 AM

Guess everyone is thinking PSF today! See Tom's post above this one.

Posted by Steve Yastrow at November 10, 2004 2:34 PM