A practical and moral defense of outsourcing
from someone doing it day-to-day
       
 
Outsourcing is Delegation

Outsourcing is delegation--and, generally speaking, people don't like to delegate. David Master goes so far as to say, in Managing the Professional Services Firm:

Like all human beings, professional service firms could be a great deal healthier if they eliminated their bad habits. This chapter focuses on a single bad habit that reduces profitability, adversely affects motivation and morale, reduces a firm's competitive capabilities, and in addition prevents senior professionals from spending more time with clients and investing in the future of the firm.

This bad habit is called systemic underdelegation.

Imagine that a questionnaire was sent to each and every professional in your firm, top-to-bottom, asking the following single question:

What percentage of your professional work time is spent doing thigns that a more junior person could do, if we got organize and trained the junior to handle it with quality?

(Obviously, do not include in this calculation that work which the client insists you perform, since the client must get what he asks for.)

Imagine that each person answered honestly, and the responses were tabulated to calculate the firmwide average.

My research shows that, for the typical professional service firm, the firmwide averge is frequently as high as 40 to 50 percent, and sometimes more. This is equivalent to saying that, of the firm's entire productive capacity, 40 to 50 percent is consumed with a higher priced person performing a lower-value task. Obviously, this is not a wonderful situation. [p. 41-42]

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About this Blog

This blog is the ruminations of Morgan Friedman, founder of Diseño Porteño (DP) on his experiences & thoughts on outsourcing. DP, based in both Buenos Aires and New York, helps companies in the USA outsource their design & programming to Latin America. Morgan has experienced ups and downs and analyzes it based on intense, personal experience.

You can e-mail me at morgan@westegg.com

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