The eternal search for cost advantage
July 7th, 2011 by Jim Cotterman
Much has been written pro and con regarding cost reduction strategies. One of the more contested approaches is outsourcing, particularly the more aggressive off-shoring. This is the movement of tasks and often jobs from internal positions to somewhere else. That somewhere else can be a lower cost rural area or another country. Successful strategies have been built around both, understanding that there is no single correct answer to these challenges.
This article, Outsourcing Pioneer Brings Work Back To The U.S., in Law Technology News reminds us that not only is there no single correct answer, but that yesterday’s best approach may be replaced by a new, or even old, alternative tomorrow. Some say first movers capture the bulk of any temporary advantage while late entrants capture very little. This identifies an important trait of leadership — the ability to move quickly enough to seize on opportunity (even to change direction), yet simultaneously slow enough to be thoughtful and build consensus.
This entry was posted on Thursday, July 7th, 2011 at 9:58 am and is filed under Economics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.