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Updated almost 15 years ago on . Most recent reply

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David Breitzmann
  • San Francisco, CA
24
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Is outsourcing justifiable in this economy?

David Breitzmann
  • San Francisco, CA
Posted

Hello digi-neighbors,

In this economy the top priority of the electorate is job creation. With my previous marketing consultation I found it interesting that when we are the entreprenuers at first opportunity, we outsource to reduce costs. This is certainly a stategic, cost-driven decision. Is it an affront when the marketing is pursued with such methods while simultaneously chiding the larger players in this downturn? Are not the two irrevocably linked?

When one has the opportunity to spur growth and money in the hands of domestic consume how is this opportunity negotiated? Marketing opportunities can be absorbed by those willing to work for an often reduced price.

Contextual example per my previous client:

You require thousands of entries in Excel and outsource to India for $50 per 40 hour week versus the domestic cost of $280
(@ $7 per hour)

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Timothy W.#3 Off Topic Contributor
  • Attorney
  • Viera, FL
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Timothy W.#3 Off Topic Contributor
  • Attorney
  • Viera, FL
Replied

Honestly David,
Outsourcing is justifiable in any economy IF the business function justifies it and there's a lot more to it than mere cost. One thing you will have to consider is if your clients attempt to contact you and get India - what impact will it have on your business? Businesses spend billions on brand marketing for basically an image. You have to determine if the cost savings will positively or negatively impact your brand marketing and decide which functions you will outsource.

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