Thursday, 10 August 2017

Private War

The Z Blog:



When I began my work life, the outsourcing trend was picking up steam in the United States. I no longer recall who it was, but some guy allegedly came up with the idea of using the phone book to break up his company. If he could find a company that did a task currently done in-house, he outsourced that task to a vendor. That was probably apocryphal, but it was a useful story. Why do something in-house when there was a local specialist, who could do it better and probably cheaper than you?
To a point, it made a lot of sense. Why would a baker own a fleet of trucks when he can lease them from a company that is expert at maintaining delivery trucks? The baker can focus on his specialty and the truck repair people can more efficiently maintain the bread trucks. Even in cases where there is no direct savings, outsourcing allows for a greater focus on core competencies. Whether or not this is true is debatable, but it is something you heard a lot in the 90’s as companies unbundled themselves.

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