Tuesday, February 15, 2005

Companies Must Train their Suppliers

Remember how the news stories focus on techies training their replacements? Training is at the heart of manufacturing and service outsourcing. If you aren’t willing to train your supplier – you can’t successfully outsource .

Successful outsourcing means that a company must pick an internal process, then extract it from others, put this process out to bid, and then have the current employees train their foreign replacements.

Take the human body as a business example of outsourcing. You would pick a process say, the circulatory system. You would then segregate it from the human body and convert it to stand-alone so that a supplier could bid on maintaining the circulatory system. Part of the bid would specify that you would train the overseas supplier to maintain your circulatory system.

The most devastating part of off shoring for the nation is not the loss of jobs, but the loss of knowledge! This is true for both manufacturing and service.

The only real problem with off shoring is that, even in the short run, we are committing technical suicide. Government agencies will want to maintain this technical knowledge, especially when making decisions on economic development.


Blogger char said...

What outsourcing does is remove the brains from the American Technology Professional and transplant it into a foreign body. The American is then free to persue a less taxing career. The BLS shows that of the top 10 most needed careers in the near future, 6 of them do not require a college education. Since we will not need college educations to fill these HOT jobs, our poor and broken educational system will no longer be such a burden. We will be free to invest in other interests. But without a brain, what interests will we have?

February 15, 2005 at 9:24 PM  
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