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Re: O/T outsourceing jobs good for economy??!
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Posted by Jerry/MT on March 31, 2004 at 21:41:04 from (206.231.182.242):
In Reply to: O/T outsourceing jobs good for economy??! posted by Jonathan on March 31, 2004 at 06:03:01:
It would be great for the ecomomy if they out sourced the CEO positions! Those guys get paid all out of proportion to what value they add to a company. It is my understanding that the Japanese pay there top exec's around a million $'s (US equivalent) total (salary plus all perks). And I think that is a fair salary for tha good CEO. I can't believe how stupid the stock holders of theese big corporations are allowing compensation packages for CEO's who run companies in the ground! But I digress. I don't think in the long run, outsourcing is good for any economy. Competitive advantage and long range thinking diappear when you outsource based on nothing but unit cost. If you aren't competing with your competitors, and continually doing R&D to improve your competitive advantage, the people you outsource to will eat your lunch in the long term and you will be powerless to stop them. Cuz you see when you outsource, your trying to "save money" so you don't do R&D and you lose your skilled people, or they grow stale and get behind in the technology.
But the MBA's run US businesses don't look beyond this quarter's balance sheet so they'll say that outsourcing is best. Some thoughts from an ex-R&D guy from what once was the premier commercial airplane producer in the world.
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