Outsourcing is as controversial as ever in today's globalized
world. But for all the noise about it in the media, whether
reflecting the perspectives of labor, business, consultants,
academics, employees, or protestors, there is far more emotion
surrounding the benefits and drawbacks of the trend than there is
common sense. Not only are these messages from different
constituents polarizing, they are also confusing because they muddy
the waters regarding corporate performance. Buffington clarifies
the role of outsourcing in business today so that Americans can
focus on something that really matters--real increases in
productivity and competitiveness in a global economy. In most
cases, he contends, neither outsourcing nor its close cousin,
offshoring, are effective as a means to their intended end.
Moreover, he points out, Americans focus a lot of negative energy
on offshoring, not realizing that domestic outsourcing might be
more harmful to our economy in the long run. Corporations lack
awareness of this distinction, according to Buffington, and
therefore they don't know which should be implemented in what
circumstances. That ignorance is not only an obstacle for any
company seeking to implement a successful outsourcing strategy, but
it is also a dire threat to the long-term growth of the American
economy. Buffington demonstrates that outsourcing often functions
as an "easy out" for corporations that are reluctant to look
instead at the root causes of their problems, whether low
productivity, lack of innovation, or an unwillingness to invest in
marketing, promotion, and sales. The reason that corporations
aren't focusing on these core issues has a historical element as
much as anevolutionary one within a global economy; the divisions
today between workers and management are as sharp as they were back
in the early 20th century, Buffington argues. But as much as we
have to learn from the past about the impact of worker/management
relations on worker productivity, we have even more to learn about
all aspects of the productivity puzzle. Corporate productivity, or
lack thereof, drives the success or failure of outsourcing or
offshoring more than the act itself, according to Buffington. This
book challenges business leaders to find their productivity and
only then to make outsourcing decisions. This approach will work
for corporations, consulting firms, outsourcers, and in the end,
customers themselves. A more productive, worker-manager friendly
business environment will lead to greater U.S. productivity, and
therefore, more effective outsourcing/offshoring decisions.
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