ACHIEVING A MAXIMUM FOR
A MINIMUM
BUT AT WHAT COST?
The
trend continues to be around the use of "off-shoring"
to help reduce associated operating cost in U.S. based
companies. It's a simple equation of-
a business
will always need to reduce operating costs
+ some jobs can be performed for lower cost by off-shoring
+ this fact is not lost on anyone in corporate
America
= THIS TREND WILL CONTINUE
Business leaders must
continually find ways to move their organization forward
while addressing the question of how do we as a company
"achieve a maximum for a minimum?" With
increasing pressure to accomplish more while spending
less, many top executives are swayed by the "off-shoring"
argument as a way to reduce budgets and cost.
Although off-shoring provides the ability to significantly
reduce costs, there are other options (internal/external)
that can be exercised first to increase efficiencies
and reduce costs, rather than just moving the work
off-shore.
Understand the "trade-offs"
and what you're getting in return. Company executives
focused solely on "cost savings" will see
"off-shoring" as the most effective way
to lower cost. However, this view may not take in
the total cost of ownership when factoring the risk
and hidden cost involved. At a minimum, this may mean
that other critical matters are being given less weight
or consideration.
Despite assurances to the contrary,
if anything sounds too good to be true then it probably
isn't. Remember, "caveat emptor,"
or-buyer beware.
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