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Outsourcing Opportunities and Woes

Outsourcing must have seemed like a good idea at the time. Here are two interesting examples that I've run into in just the past two days.

Outsourcing #1
Yesterday the analysts on the financial channel were speculating that the supply chain has gotten a tad too long. The West Coast ports are at capacity and some businesses are having problems getting in parts, etc. And... no one considered that "just in time" inventory could be a problem?

Outsourcing #2
This one made me compelled to pull up my portable soapbox. I heard it on CNN/Lou Dobbs today while I was starting dinner. It seems the Dallas school district is thinking about hiring illegal aliens to teach in the schools. They say they can't find enough Americans who are fluent in English and Spanish to fill the "low paying" jobs.

Outrageous? Yes... but could these both be opportunities?

Solution Preview

Outsourcing must have seemed like a good idea at the time. Here are two interesting examples that I've run into in just the past two days.

Outsourcing #1
Yesterday the analysts on the financial channel were speculating that the supply chain has gotten a tad too long. The West Coast ports are at capacity and some businesses are having problems getting in parts, etc. And... no one considered that "just in time" inventory could be a problem?

Outsourcing #2
This one made me compelled to pull up my portable soapbox. I heard it on CNN/Lou Dobbs today while I was starting dinner. It seems the Dallas school district is thinking about hiring illegal aliens to teach in the schools. They say they can't find enough Americans who are fluent in English and Spanish to fill the "low paying" jobs.

Outrage? Yes... but could these both be opportunities?

Solution:

Yes both these can be opportunities. Let's discuss one by one

Outsourcing # 1

Consider firms in West Coast who have their international strategy to expand to growing nations like India, China etc. While their current capacity is already full, in order to expand to other countries, they have three options:

1. Expand their ...

Solution Summary

Provides examples of Outsourcing Woes faced by organization planning to outsource. These examples highight the issues faced by decision makers and what they should consider in making a decision

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