Why Outsourcing Will Be Hard To Reverse

Some people believe believe that outsourcing will reverse itself once wages in other countries rise, projects fail or fuel costs go up. Others believe that outsourcing will reverse itself due to emergent nationalism or protectionism. I think they are naive.

Outsourcing, was never really about lower wage costs, efficiency or overcoming regulatory hurdles.

Those were just fortuitous side effects in some industries and were used as logical sounding justifications. The real purpose of outsourcing is to extract equity out of corporate assets during the various steps of that process- from layoffs, asset auctions to setting up new companies, changes in prices and amounts of stock options etc. Those who benefit from this sequence of events do not care about the end results because they, like parasites, will have found another naive host company before the current one is dead.

Higher management (and their friends) like outsourcing because it makes them a lot more money than they would have otherwise make. Middle management-types support it because of peer pressure and greed. Of course, they do ultimately suffer the same fate as productive ex-workers. Some stupid workers even believe that outsourcing is about efficiency, capitalism, the free market and all that bullshit. Those who don’t see it as an unavoidable trend and sign of the times.

You cannot combat outsourcing unless you understand the core motivation driving the process.

It is far easier to make money by destroying and cannibalizing a business built with other people’s money and efforts than running it as a modestly profitable enterprise.

Most morons find the above mentioned explanation hard to accept because it flies in the face of one of their most cherished belief- that the ‘world’ is somehow ‘just’. They actually believe that rich people are deserving of their money because they are better than others. Once you accept that somebody is better than you it is not that hard to uncritically accept any explanation or idea popularized by your ‘superiors’.

So there you have it.. Now you know what really drives outsourcing, mergers and a host of other policies that destroy functional enterprises to enrich the very few.

Comments?

  1. July 4, 2011 at 6:21 pm

    so advocatus,

    does that mean you buy american w/women?

    Is it outsourcing when you get your escorts in Canada instead of the US?

    Is it outsourcing when you get your bride in Thailand?

    hahahaha, you call business men sociopathic, then you use the same strategies to get laid.

    I guess the business men claim they are “forced” to outsource due to crappy american workers and you are “forced” to outsource due to crappy american women.

    Just sayin’.

  2. Rum
    July 4, 2011 at 6:56 pm

    The only way that looting a going enterprise brings one out ahead of continuing to run it is when and where the enterprise can be bought at too low a price. Paying a fair market price for a profitable firm includes paying for expected future profitably.
    So, in your mind, the smart (but ruthless) folks buy profitable companies and then wreck them – turning them along the way into something with less or no market value? The stock holders are OK with this? Maybe they do not pay attention to profitablity and share value.

  3. Mr. Stricter
    July 4, 2011 at 8:48 pm

    I don’t disagree with a thing in your article.

    The only way to reverse this trend is to take control of the system from the psychopaths than run it without becoming them and while having the requisite business skills (to avoid going Zimbabwe) Its not easy buts its theoretically doable.

  4. Commander Shepard
    July 4, 2011 at 10:30 pm

    Excellent insights AD, some of which I hadn’t considered before.

    I agree Mr. Stricter. We have to seize power without becoming the evil we’re fighting against but still manage the system harmoniously. A tall order for sure.

  5. John
    July 5, 2011 at 8:14 am

    For a bit of an insight into corporate and government psychopathy, read “Snakes in Suits” by Dr.s Robert Hare and Paul Babiak. There isn’t one argument made in the article that be disputed as there exists no evidence contrary to its truths, and rather, there is voluminous evidence as foundational for its support.

    V for Vendetta.

  6. randall
    July 6, 2011 at 4:06 am

    bravo Advocatus! bravo!

  7. White History
    July 6, 2011 at 9:22 am

    Not all labor is created equal.

    I’d rather have a factory full of Germans than a factory full of Indians or Nigerians.

  8. WhiteHistory
    July 6, 2011 at 9:24 am

    Not all labor is created equal.

    I’d rather have a factory full of Germans than a factory full of Indians or Nigerians.

  9. July 6, 2011 at 11:14 pm

    This has been obvious for decades to those unwilling to buy into the propaganda and agitprop. Nationalism? Horseshit for suckers. Racial solidarity? Whatever. Humanitarianism? Yeah, right.

    I think it’s wonderful.

    Now we non-elites have no reason to “follow the rules” other than fear of enforcement, and that’s an odds game that can be mitigated to one degree or another depending on one’s desires and appetite for risk. Just forget trying to convince most people of that in the east or west: just use them and their weakness. It’s much easier and profitable.

    The social contract, if it ever really existed as anything other than yak yak happy talk marketing is dead. Not having to give a fuck is liberating and full of opportunities. If you haven’t been exploiting this it’s high time to start.

  10. Commander Shepard
    July 7, 2011 at 5:09 pm

    Well said vanity. The elites have always had a self serving amoral outlook on the world. Now we little can emulate our “social betters” and maybe give them a taste of their own medicine.

  11. Commander Shepard
    July 7, 2011 at 5:15 pm

    I meant to say little people.

    Yes we the little people should take a page out of the elite playbook.

  1. July 9, 2011 at 2:48 pm
  2. July 10, 2011 at 1:02 am

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