Sunday, September 10, 2006

Outsourcing

Outsourcing of Finnish high-tech production is becoming an issue that is causin fear and worries. Ever since companies began to shift work overseas, outsourcing has been portrayed as a killer of both low and good-paying jobs. But now executives are discovering outsourcing can not only reduce costs but also boost quality and even create new types of jobs at home. Now the evidence is materializing and it's possible to analyze the plus and minuses of outsourcing. We've to be concerned about the competitiveness of our companies.
  • There is a shift of jobs -- a part of the jobs will be outsourced
  • Skilled work is not always used in the best way in our companies
  • Is it used to outsource labor
  • Re-engineering of their operations
  • Strategic cost- and quality advantages can be achieved
  • Off-shoring service work is increasing (example Call centers)
  • It's very expensive to hire SW engineers in Silicon Valley
  • For true innovations outsourcing is a marginal cost saving
  • It will be a very painful transition
  • This will lead to more productive companies
  • It's boosting corporate growth
  • It can be painful for the individuals

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