Microsoft goes on a 'myth-busting tour'

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What is the problem with outsourcing?

Are you sure that you don't know already?

The reason for the cost savings from outsourcing is the reduction in expenses.
The expenses in question are often primarily employee expenses.
If you are an employee in a section of a company that is out-sourced, you have a good chance to lose your job.
If you are hired by the company to which your job is outsourced, you will cease to accumulate benfits, in fact may even lose the benefits you had accumulated. You are also not guaranteed a comparable salary, and job security is probably not enhanced. (Ironic as that may sound.)

Celebrations among executives are often not joined by those affected.

The following link is to a site maintained by a law firm. It concerns the attempt by an employee to regain pension benefits after losing his job from an outsourcing. He lost.
The university that outsourced made what appears to be a real effort to limit the damage to people. Other outsourcers are probably not as interested.

http://www.cooley.com/news/alerts.aspx?ID=000038524720

Let us say that you are still some years from being able to collect your pension, though you are vested.
Your company outsources your section, and you fired by the company for which you had worked. As an older, higher salaried employee, let us say that you are not hired by the company providing outsourced services.
You have some years to get through before your pension begins. You now have the need to get through those years. If you're like some people, you will have little difficulty. If you're like others, those years will be a very long time.

I'm trying to give you an idea of the upheaval that can happen to individuals when companies outcource, in order to obtain your sympathy for those affected.
I hope I succeeded.

Posted by: Anton Philidor   Posted on: 06/11/04 You are currently: a Guest | Members login | Terms of Use

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