Posted by: sfjohnwang | February 8, 2009

Is outsourcing the solution for layoff?

No matter how evil the company management may be seen by emplyees that are laied off, the fact is company does not like layoffs either, let alone at such a significant level. Layoff is a painful process for both the emplyees and the company.

Although many think that the current wave of layoff is unfortunated, the question is will the business go through the similar cycles of “hire and layoff” again in the future? The answers probably not.

The solution forthe company to smooth the fratuation of emplyeement between business cycles is to outsource most of “technical” and “processing” work while keeping a relatively stable “core” team.

If that trend grows, we will see a significant “outsourcing” sction in every industry including high tech and biotech industry. People who work as the “core” team member of a company will be less affected by the business fractuation, while those work in the “outsourcing” section will be able to have a relatively stable job by serving broader clients population.

Would that be a win-win stuation?


Responses

  1. I can’t help but agree. Outsourcing seems to be the best solution at this point. Think less risk.

  2. Here’s a never considered concept for an economic stimulus package that is centered not only on President Obama’s package, but also on the minimum wage, immigration, outsourcing and exporting Technology, which I feel would stimulate the economy faster than what’s been presented in both the House and Senate.

    http://ourcountryspresident.wordpress.com/2009/02/09/minimum-wage-the-key-to-an-economic-stimulus/


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