Vol. 11, Issue 32
Week of September 8, 2008
In This Issue
Feature: The Outsourcing Of America: A Case History in How Not to Do Globalization
- About Jonathan Wilkie
Publisher’s Note: Every bright idea has its dark side, and this is clearly true for outsourcing and economic globalization. Specifically, no company wants to bring about its own demise by managing these processes naively or ineptly – yet the truth is that many do, and perhaps this happens more often than boosters of these processes would like to admit. Because extremely negative outcomes are common, it is not difficult to suggest that the successful future of globalization requires that those practicing it become more adept at understanding, and then implementing, informed procedures which protect company assets and ensure longer-term success.
Failure to see the dangers inherent to outsourcing, foreign direct investment, and trade alliances will ultimately doom business global activities to the same fate as that of the current, unendingly unsuccessful “Doha”round of global trade talks. Specifically, the idea that there are no winners and losers in these arrangements needs to be re-analyzed, so that true winners and losers (or, more diplomatically, gains and losses) are recognized early and properly compensated for, so that all parties really benefit from the exchange.
Managers of all companies involved in, or planning to do, outsourced programs should read Jonathan’s piece, and take any appropriate lessons. Wouldn’t you think being the leader in Blu-ray, the most advanced new standardized optical-storage medium, would be a perfect long-term profit platform? Read on. — mra.