Umair Haque / Bubblegeneration
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Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.


 
Monday, June 14, 2004


Aarrrrgh. Here's yet another article about outsourcing - this time, a roundtable of (rather respectable) b-school profs including D'Aveni and Rajan.

Look, by now, we've had a very, VERY nice example of the problems with 'outsourcing': Iraq (and Abu Ghraib). It should be patently obvious that outsourcing, far from being a radical cost reducer, can absolutely demolish an organization's social capital - and thus create (all sorts of) massive hidden costs: via reputational effects, unintended consequences to organization structures, lines of power, erosion of control, etc.

So what these guys are discussing, unfortunately, has little to do with reality.

-- umair // 12:44 PM // 0 comments


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