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by CydeWeys
2073 days ago
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This clearly doesn't actually work though; how many Fortune 500 companies can you point to that use a mostly outsourced employee base, even for their core functions? The closest you can get is likely an Uber or similar, but all they've outsourced is drivers and janitors; they still employ many thousands of engineers, salespeople, etc. Also, the management chain still exists, it's just at a different company. But from the worker's perspective that's irrelevant; just as many people still have bosses. |
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A hypothetical 'outsource everything' company would be perfectly agile because everything else is fungible replaced with whoever is doing the outsourcing regardless of what is going on everywhere else. The downsides are not only that they are the reverse ofvertically intergrated in that they give up margins to everyone else in the chain and that they have no differentiator other than what they can provide as 'middleware' and outsourcing everything to stay that agile means that it is shrank by design. They would have to provide real value margin as a middleman in order to exist long term vs the clients 'just putting all of the pieces themselves'.