Fun with Outsourcing
Mood:
chatty
Topic: Summer General
According to a company memo, a certain company- let's call it company A- outsources its HR department to company B, an American company. Company B, in turn, outsources these same jobs to company C in India.
Now, I asked myself, why doesn't company A just outright source out to company C? Because just like a middle man with a regular product, not human jobs, this must increase the price. Each layer adds its own price on top so that it can make a profit.
I was only able to come up with one possible explanation. Basically, there is currently a big backlash against exporting jobs to India. I mean, people don't like job exportation to begin with, but India's been in the news recently so they're the one we love to hate for now. (Kinda how KFC is kitchen fresh chicken instead of kentucky FRIED chicken)
So anyway, I figure that company A doesn't want the bad rap for exporting jobs to India. So it exports to company B. Company A can then say truthfully that it's keeping business in America so therefore it's helping Joes get jobs, not Sikhs. Then it's all company B's fault that the jobs are going away.
I'm not sure what else could make sense. There's the slight probability that company B has connections that allows it to send work to India and make a profit and still be cheaper than if company A went straight to India. But I would think that eventually, co A would want to make the same ties. I don't know...but that's what I would do.
Posted by Eric
at 8:52 PM EDT