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Hub You - Drivng Home the Point - An Outsourcing Story in China
We all know we can pay a magazine or a newspaper to run ads for us. Businesses do it all the time. In many cases, you're obliged to advertise to survive. But wouldn't you rather promote yourself and your company in a number of publications, and get paid for it?You can. Simply by writing magazine articles. When you write articles as a business person, you gain on three levels: 1. You demonstrate your knowle
The bottomline is companies should focus on what they are good at, and leverage on others’ strengths. But today, many companies still try to do everything themselves in-house.
For instance, IT departments within big corporations try to develop applications that are available in the market—yet non-core to their business.
Many companies also think that manpower cost is fixed, so it is better to work with existing resources than to incur additional costs in IT applications or
Proxy servers are, such as browsers, a way of connection between an internet user and internet resources that he is accessing. These proxy servers gather and in the same time they save files that are often requested by a great part of the internet users in a special database called cache. That is why, using a proxy server might lead to the increase of your internet connection speed because it is possible that the informa
The next time, I went to Suzhou from Beijing. My local friends advised me to take a plane to Shanghai airport and catch a taxi from there. They told me that the taxi fare from Shanghai airport to Suzhou should be around 400 yuan.
When I arrived at Shanghai airport, I saw a middle-aged man holding a placard, with “Suzhou, Wuxi” written on it. He wanted to charge 200 yuan for the ride.
That caught my attention! It was half the price I expected. I checked out the man—he looked pretty decent and it seemed like a good deal. And so I accepted the offer.
The journey
The man carried my luggage to his car, drove me to a nearby spot and asked me to wait. Five minutes later, he came back with another car and another driver. He explained to me that he did not have the licence to drive in Suzhou and had asked his friend to help.
Before parting, I paid him 200 yuan and confirmed with the new driver that he would take me to Suzhou. I transferred my luggage to the new car.
During the trip while chatting with the driver, I realised that he was on the way home to Wuxi, bypassing Suzhou. The man who had “contracted” him had paid him 50 yuan.
His car stopped outside the city of Suzhou. He told me that he was not familiar with the roads of Suzhou and would help me get a taxi.
Within a few minutes, he flagged down a taxi, told the taxi where I wanted to go, paid the taxi driver 10 yuan and transferred my luggage. The rest of the journey was uneventful and I arrived safely at my hotel, on time to meet my customers.
All benefit
There were three persons in this value chain. First, the man at the airport offered to meet my needs at half the normal price. He made his money by outsourcing the “production” to the Wuxi driver, who could do it at a cheaper cost. Second, the Wuxi driver “outsourced” to the Suzhou taxi driver for the same reason.
At the end, the man at the airport earned 150 yuan, while the Wuxi driver earned 40 yuan and the Suzhou taxi driver earned 10 yuan. I was the biggest winner because I saved 200 yuan!
The bottomline is companies should focus on what they are good at, and leverage on others’ strengths. But today, many companies still try to do everything themselves in-house.
For instance, IT departments within big corporations try to develop applications that are available in the market—yet non-core to their business.
Many companies also think that manpower cost is fixed, so it is better to work with existing resources than to incur additional costs in IT applications or
Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.There are other useful definitions in this field, for example, creativity can be defined as consisting of a number of ideas, a number of diverse ideas and a number of novel ideas.There are distinct processes that enhance problem identification and idea
That caught my attention! It was half the price I expected. I checked out the man—he looked pretty decent and it seemed like a good deal. And so I accepted the offer.
The journey
The man carried my luggage to his car, drove me to a nearby spot and asked me to wait. Five minutes later, he came back with another car and another driver. He explained to me that he did not have the licence to drive in Suzhou and had asked his friend to help.
Before parting, I paid him 200 yuan and confirmed with the new driver that he would take me to Suzhou. I transferred my luggage to the new car.
During the trip while chatting with the driver, I realised that he was on the way home to Wuxi, bypassing Suzhou. The man who had “contracted” him had paid him 50 yuan.
His car stopped outside the city of Suzhou. He told me that he was not familiar with the roads of Suzhou and would help me get a taxi.
Within a few minutes, he flagged down a taxi, told the taxi where I wanted to go, paid the taxi driver 10 yuan and transferred my luggage. The rest of the journey was uneventful and I arrived safely at my hotel, on time to meet my customers.
All benefit
There were three persons in this value chain. First, the man at the airport offered to meet my needs at half the normal price. He made his money by outsourcing the “production” to the Wuxi driver, who could do it at a cheaper cost. Second, the Wuxi driver “outsourced” to the Suzhou taxi driver for the same reason.
At the end, the man at the airport earned 150 yuan, while the Wuxi driver earned 40 yuan and the Suzhou taxi driver earned 10 yuan. I was the biggest winner because I saved 200 yuan!
The bottomline is companies should focus on what they are good at, and leverage on others’ strengths. But today, many companies still try to do everything themselves in-house.
For instance, IT departments within big corporations try to develop applications that are available in the market—yet non-core to their business.
Many companies also think that manpower cost is fixed, so it is better to work with existing resources than to incur additional costs in IT applications or
We live in an age when many providers of professional services are pressured both by prospective and existing clients to lower their fees. How can you better deal with this challenge?I think pressure from clients is not a problem because if they fail to recognise the value of your contribution after creating some results together, you should get rid of those clients anyway.Prospective clients, however, cann
During the trip while chatting with the driver, I realised that he was on the way home to Wuxi, bypassing Suzhou. The man who had “contracted” him had paid him 50 yuan.
His car stopped outside the city of Suzhou. He told me that he was not familiar with the roads of Suzhou and would help me get a taxi.
Within a few minutes, he flagged down a taxi, told the taxi where I wanted to go, paid the taxi driver 10 yuan and transferred my luggage. The rest of the journey was uneventful and I arrived safely at my hotel, on time to meet my customers.
All benefit
There were three persons in this value chain. First, the man at the airport offered to meet my needs at half the normal price. He made his money by outsourcing the “production” to the Wuxi driver, who could do it at a cheaper cost. Second, the Wuxi driver “outsourced” to the Suzhou taxi driver for the same reason.
At the end, the man at the airport earned 150 yuan, while the Wuxi driver earned 40 yuan and the Suzhou taxi driver earned 10 yuan. I was the biggest winner because I saved 200 yuan!
The bottomline is companies should focus on what they are good at, and leverage on others’ strengths. But today, many companies still try to do everything themselves in-house.
For instance, IT departments within big corporations try to develop applications that are available in the market—yet non-core to their business.
Many companies also think that manpower cost is fixed, so it is better to work with existing resources than to incur additional costs in IT applications or
So now you are convinced, you want to quit your job and work from home in your own home business.Smart move. As J. Paul Getty observed, "You must be in business for yourself, you'll never get rich working for someone else." And he would know. His father, George F. Getty thrust Paul into running George F. Getty, Inc. before he was even 20.Paul was very close to his elderly father and got very good at managin
All benefit
There were three persons in this value chain. First, the man at the airport offered to meet my needs at half the normal price. He made his money by outsourcing the “production” to the Wuxi driver, who could do it at a cheaper cost. Second, the Wuxi driver “outsourced” to the Suzhou taxi driver for the same reason.
At the end, the man at the airport earned 150 yuan, while the Wuxi driver earned 40 yuan and the Suzhou taxi driver earned 10 yuan. I was the biggest winner because I saved 200 yuan!
The bottomline is companies should focus on what they are good at, and leverage on others’ strengths. But today, many companies still try to do everything themselves in-house.
For instance, IT departments within big corporations try to develop applications that are available in the market—yet non-core to their business.
Many companies also think that manpower cost is fixed, so it is better to work with existing resources than to incur additional costs in IT applications or
It goes by many names -- conflict prevention, conflict resolution, conflict management, the names go on. These terms were all created to combat a similar problem. For the most part, people who deal with these issues all agree with the same principle:Conflict resolution at an early stage is less costly and more manageable than trying to deal with its repercussions later.First, let’s discuss the types of conf
The bottomline is companies should focus on what they are good at, and leverage on others’ strengths. But today, many companies still try to do everything themselves in-house.
For instance, IT departments within big corporations try to develop applications that are available in the market—yet non-core to their business.
Many companies also think that manpower cost is fixed, so it is better to work with existing resources than to incur additional costs in IT applications or services.
They think that manpower cost is just basic salary, and forget about the other costs such as bonus and employee benefits, as well as overheads such as recruitment and rental. They underestimate their manpower cost.
The fact is unless you understand the actual costs of a particular process or project, it is difficult to decide if outsourcing is a better alternative.
Besides costs, the question is: can you do a better job than someone who specialises in the field? Just think of the Wuxi and Suzhou taxi drivers.
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