Re: What is Business Process Outsourcing?
I've got the feeling there are two types of outsourcing (at least) and I'm not so sure one of them is what I'd consider outsourcing.
The one I don't feel is outsourcing is where companies (like Coca Cola, Pepsi Cola, MacDonalds, KFC etc.) have opened up in almost evey country in the world and have their "goods" produced in each country.
Then there are companies like Nike, Adidas etc. who have their stuff produced in the countries with the lowest wages. I read recently that one of them is moving their production from China I believe, to a country where wages are even lower. So much for trying to help.
I don't think we should kid ourselves as I'm almost certain the main motivation for outsourcing is just to get things made as cheaply as possible. Fundamentally there is nothing wrong with this thought, but if it only is about profit then I can't get myself to think it's wonderful.
Africa as a whole is a poor continent, and probably the one that gets most money sent without conditions, but I can't help but feel the more money that's given, the poorer the people seem to get. How about building factories there and it'll at least ensure that those that need the money most get it?
Just so I'm not misunderstood - I think outsourcing is good, but I'd like the motivation and conditions examined carefully. For example, some countries (a small percentage unfortunately) have a strict policy against child labour. As I mentioned in another thread, slavery (child labour) and drug dealing give great profits, but that doesn't make them acceptable.
Outsourcing is here to stay - but should be monitored to avooid misuse.