Jerry Barnes <[email protected]> wrote: > > All I am saying it that the market cost of outsourcing, particularly in > regards to employees, is more profitable than staying at home. > > Can I assume you disagree? >
I'm not sure what you mean by "market cost" but yes, in general I disagree, depending on who, what, where, when, how. There's a whole business discipline around this called "strategic sourcing" wherein you attempt to find the best partners and the best arrangements with them. And then it depends on what you're outsourcing in terms of business process. Many times there is no cost advantage due to unexpected transaction costs. A great example is process automation. ERP implementations many times attempt to combine labor outsourcing with automation but even when they don't they are infamously huge failures. And all of this ignores what "profit" means based on incentives and missing costs (i.e., externalized). For example, if I can't dump chemicals into the ground water in the US but I can in Africa then even if the production cost is higher it might still be more profitable on a net revenue basis but that's only because my business has been able to externalize operating costs, i.e., dumping hazardous chemicals. Same would be true for worker safety, etc. To wrap it up, if your point is that "outsourcing" is simply a labor arbitrage play then you're missing 80% of the picture. That's why I'm asking you to define what you think the "market infrastructure" should be. Should we require worker safety? Product safety? Leave the place like you found it? All that stuff has a cost. Thus if you want a free, well-regulated market you have to first define what that is and who pays to set up the market in the first place. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:337902 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
