“Funny” story - at my prior employer, my department would outsource a bit more labor overseas each year to reduce costs. Year after year we were able to deliver 5-10% cost reductions, mostly through outsourcing. When I started with the company, we were about 40% outsourced, when I left we were over 80%, but it took many years to get there.
Over the years, we could have returned vastly more money to shareholders if we had outsourced more quickly, but our department leadership understood that they have to show improvement every year, so its bad business to save all the money at once (even though the savings would increase profitability permanently).
In the last 2 years, many of those leaders have moved on to other roles, in part because they understood we were nearing the end of the road for that strategy. I would be very curious to see how the next 2-3 years goes for the new leaders, but I also had a good opportunity to leave before things get ugly.
In the last 2 years, many of those leaders have moved on to other roles, in part because they understood we were nearing the end of the road for that strategy.
The next strategy is to save money by consolidating operations under one roof. Duh.
“Funny” story - at my prior employer, my department would outsource a bit more labor overseas each year to reduce costs. Year after year we were able to deliver 5-10% cost reductions, mostly through outsourcing. When I started with the company, we were about 40% outsourced, when I left we were over 80%, but it took many years to get there.
Over the years, we could have returned vastly more money to shareholders if we had outsourced more quickly, but our department leadership understood that they have to show improvement every year, so its bad business to save all the money at once (even though the savings would increase profitability permanently).
In the last 2 years, many of those leaders have moved on to other roles, in part because they understood we were nearing the end of the road for that strategy. I would be very curious to see how the next 2-3 years goes for the new leaders, but I also had a good opportunity to leave before things get ugly.
The next strategy is to save money by consolidating operations under one roof. Duh.
The next step when the company is unable to produce any value anymore, it’s to become a patent troll.