Some students in business and economic classes at major Colleges and Universities are doing research on outsourcing. Very smart thing to study indeed. Outsourcing is not a bad thing as many Unions believe. It means efficiency and is good to bring the world closer together in this way. One very interesting case study is Sara Lee, which sold all its factories and then contracted others to make their product. If you look at companies like HP and the way they have their products made all over the world you can see the same thing. Also now Boeing does the same thing too. You see it also makes sense from a sales perspective, as if you outsource all these things to other places then they will want to buy your aircraft over another company which does not provide jobs or have factories in that country you see? Many people who are union employees complain about these things, yet do not see the World Wide sales benefits or the fact that in making the products for less money give the company an advantage and the company is more efficient, as things can be made closer to where raw materials are and you save supply chain transportation monies too. If a company like Boeing can outsource to companies in nations with cheaper labor, nations which may buy their aircraft and nations with near by natural resources to build those parts everyone wins and the economies of scale are fully realized and the bonus? Well Boeing sells more aircraft over Airbus. If they do not outsource, the costs of aircraft go up, they sell fewer aircraft and eventually will fall to the competition. I hope you consider this in 2006. |
