Out-sourcing & Off-shoring blah, blah, blah…. yada, yada, yada…

I do not know about you guys, but I’m getting tired of hearing about this topic ad nauseam. The fact of the matter is that the per unit rate will be cheaper for most services by outsourcing said services overseas (ceteris paribus), but the soft (re: collateral) costs/damages for these off-shored services will quickly erase the per unit savings and then dig further into revenues.

So, for companies that are hurting badly, it may be quick ‘solution’ for them to outsource some services to keep their bottom line intact through these tough economic times.  This is a knee-jerk and extremely myopic reaction and vision as the damages to quality, customer support, brand, and service etc… will continue long after our economy gets back on track. 

Everyone knows it costs more to gain new customers than to keep them, and after a company saves some coin for a quarter or two by outsourcing to offshore providers, they will no doubt be seeking new customers as their existing ones are long gone.

 This has been going on for years and is still CONSTANTLY being discussed.  It’s very simple accounting; companies are willing save some short-term cash flow now to keep things going to meet guidance and have Wall Street happy with them at the expense of long term viability, profitability, quality, and customer satisfaction.

There, we can finally put this tired subject out to pasture…