When Outsourcing Fails

by Dan Robles on 10/10/2010

At the end of September the US Senate blocked a measure designed to reduce the outsourcing of US jobs that many corporations pursue in the relentless drive to reduce costs.

Modern Globalization is a system – it must be analyzed like a system. Data, Information, knowledge, Innovation, and wisdom are profoundly related in a system. If you take away one of the components, the others become worthless. If you destroy one component, the entire structure could fail.

Everyone knows that data, information, knowledge, innovation, and wisdom are related. If I corrupt the data, then the associated information, knowledge, innovation, and wisdom are also corrupted. Likewise, if I eliminate any of these elements, the system fails.

The standard argument for outsourcing is that knowledge workers are better allocated in innovation jobs so “we can better focus on our core – and heck, we can all save a little dough in the process”. But when we outsource our knowledge economy, the innovation economy is choked off. The knowledge economy is the source of the Innovation Economy. The Knowledge economy is also the recipient of the information economy which transforms data and information into useful tools, ideas, and products.

The rate of change of the innovation economy is directly proportional to the INCREASE not the OUTSOURCING of the knowledge economy. This is the calculus of outsourcing. If, on the other hand, it is in you best interest to keep a population poor, weak, and unable to organize into powerful collectives, then yes, outsourcing is an effective method.

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halestorminc (Halestorm Inc) October 11, 2010 at 1:30 am

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JCastolm (Juan Castaneda) October 10, 2010 at 6:04 pm

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RT @vladnet: When Outsourcing Fails [link to post] RT @JDeragon

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AllenatCFM (Allen Howell) October 10, 2010 at 3:02 pm

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ingenesist (ingenesist) October 10, 2010 at 3:01 pm

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AronStevenson (Aron Stevenson) October 10, 2010 at 6:01 am

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