(Forbes) International When Not To Outsource Penelope Patsuris, 01.05.05, 6:00 AM ET Outsourcing is often viewed in black and white terms--a boon for corporate America and a bust for U.S. workers. Every job and every business strategy is seen as potential fodder for the outsourcing mill, with the assumption that the cost savings reaped from the practice will simply pour back into the company coffers. Not so fast. Companies are beginning to realize that there are plenty of cases in which outsourcing is not the best business strategy--even when it comes to manufacturing, a realm that's generally considered well suited to the practice. TPI, a consulting firm based in the Woodlands, Tex., often tells clients to steer clear of outsourcing. "When people come to me with their outsourcing ideas, I usually advise them against 30% or 40% of the initiatives that they had in mind," says TPI project director Paul Schmidt, "even though that doesn't maximize my sales." Some deals will continue to make sense. Companies as diverse as Best Buy (nyse: BBY - news - people ), Procter & Gamble (nyse: PG - news - people ), Verizon Communications (nyse: VZ - news - people ) and Ford Motor (nyse: F - news - people ) are reaping tremendous strategic advantages thanks to the practice. "The issue isn't that less will be outsourced," says Harvard Business School professor Rajiv Lal. "It's just going to be a matter of what is outsourced." It takes a complex calculus to determine whether outsourcing makes sense, so there are few hard and fast rules. But the general theme that underlies our guidelines is simple: The option that offers the biggest cost savings isn't always the best one. ------------------------ Yahoo! Groups Sponsor --------------------~--> Give underprivileged students the materials they need to learn. Bring education to life by funding a specific classroom project. http://us.click.yahoo.com/4F6XtA/_WnJAA/E2hLAA/BRUplB/TM --------------------------------------------------------------------~-> *************************************************************************** Berdikusi dg Santun & Elegan, dg Semangat Persahabatan. Menuju Indonesia yg Lebih Baik, in Commonality & Shared Destiny. www.ppi-india.uni.cc *************************************************************************** __________________________________________________________________________ Mohon Perhatian: 1. Harap tdk. memposting/reply yg menyinggung SARA (kecuali sbg otokritik) 2. Pesan yg akan direply harap dihapus, kecuali yg akan dikomentari. 3. Lihat arsip sebelumnya, www.ppi-india.da.ru; 4. Forum IT PPI-India: http://www.ppiindia.shyper.com/itforum/ 5. Satu email perhari: [EMAIL PROTECTED] 6. No-email/web only: [EMAIL PROTECTED] 7. kembali menerima email: [EMAIL PROTECTED] Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/ppiindia/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
