Outsourcing V/S Global Resource Leverage

• How would you introduce a concept like Outsourcing into your company??
• “The Shock and Awe about Outsourcing is to an extent a knee jerk reaction by few by their own insecurites or limitations, with fear that cost being the primary criteria for "outsourcing" rather than doing what is best for the company.
  
• Mind you, I am not talking for or against it, but the decision should be looked at the long term strategic benefit for the company and not just look at "operational benefits" of the same.
  
• Can a educational institution outsource "teaching". May be not but should it be willing to welcome "Industry Professionals" as "Visiting Faculty" to give an Industrial richness to the curriculum. Definitely Yes
• The concept of outsourcing is a logical extension of the concept of "body Shopping" as what came in, is now going out.
  
• The concept which is much deeper is the concept of Global Resource leverage.
  
• The world is not bound by geographical boundaries any more, you produce where it is cheapest to do that, use resources where it can be leveraged and sell it where you can make the most margin.
  
• The quality has to be world class as your competition may not be not the pop and mom store next door or the Behemoth in the city centre but could a small pop and mom store in China or India who using the world class logistics of the global supply chain can sell services and products at a much cheaper rate than what can be produced locally.
  
• Highlighting the benefits of global economy, like reduced cost of goods consumed in local economy, ability of companies to profit from the new consumption centres in BRIC countries, could help employees to appreciate it as an beneficial trend rather than a disruptive one.
  
• Lot of Companies also do an "immersion" exercise where middle level managers are exposed to BRIC countries by field visits and ability to look at the possibilities in these states rather than look at the negatives.
  
• Such immersion exercises allow employees to understand the concept of Global Resource Leverage.”