OUTSOURCING VS REAL COMPETITIVITY

In the last few months I have read and listen so many analysis about the impacts from the outsourcing cancellation for business. In all of them I have read “… this means a decrease in business competitivity”. But let´s see it carefully. The new law stablished that it is not alowed outsourced employees with related activities with the business objectives. This means that the base payroll must be under the business administration. Probably cleaning, food, specialized consultancy might be from oursourcing companies (as long as it is not one of the business objectives).

I have a doubt in here…if due to outsourcing cancellation business will downturn its competitivity…then we should close the business and do something else? Definitely NO.

Business competitivity does not depend on the payroll. It has a greater meaning.

We can focus on the development of our core competences when non-esential activities are under some other company, such as cleaning for example.  So the big questions are: Why should I have my strategic employees, the ones that support my core competence  out of my business control? Isn´t it contradictory ? Isn´t there any risk concerning industial secrecy?

In XXI century we can´t think of sacrificing employees and wages to get competitivity. Teconology, knowledge development, innovation, mew methodologies to increase quality and so on make it possible nowadays highly competitive business. HONDA is just an example.

Also, we are not seeing the big picture…our own employees are potential buyers. We are all linked in the production chain and consumption. How to sell a product or service if there is no maket capability to buy them.

Therefore, I am going to say it this way: OUTSOURCING WILL NOT DOWNTURN BUSINESS COMPETITIVITY.

“One of the best measures to reduce costs is increasing my employees´wages…My employees must have high wages… otherwise, who will buy my cars” . Did Henry Ford pay efficiency wages? Daniel M.G, Raff & Laurence H. Summers. 1987