Outsourcing is good.

Well obviously I am going to say that. However, I am not the only one blowing the outsourcing trumpet. When Adidas recently revealed plans to outsource the manufacturing of NBA jerseys it was seen as a controversial move. Senator Chuck Schumer went as far as to claim that the company was sticking ‘America in the eye’ with its aim to outsource to Thailand. This claim was not well received by economy and business journalists alike.

I think the most poignant argument against Schumer’s outsourcing bashing was formed by Fox Business journalist John Stossel:

“What Schumer doesn’t get is that what really “sticks America in the eye” is his protectionism. Outsourcing is a good thing. When companies go abroad, they do it because the cost savings allow them to make better products for less. This means more profit for the company and lower prices for all American consumers and businesses. Shumer, like many of his colleagues, doesn’t understand economics”.

Here, here Stossel! I couldn’t have put it better myself. So in true ‘sticking’ it in Schumer’s eye style, I will proceed with the main sourcing news this week.

The London School of Economics made history this week when it claimed it has signed the first ever academic website management outsourcing contract. The contract was signed with iomart Hosting who will maintain the platform that supports the Universities website off site.

This week has also seen CBI, the employer’s lobby organisation, and private sector chief executives, urging the UK Government to look more seriously at public sector outsourcing. The public sector outsourcing debate is clearly intensifying as we draw closer to next year’s inevitable UK election.

Alistair Darling, the Chancellor of the Exchequer, was asked to balance his books two years earlier than he had first proposed, and to consider the option of more outsourcing for the sector. I wonder what Schumer would have to say about this. We’re pretty certain offshoring is also going to play a part. Perhaps we could offshore government expense claims Ed?

Finally, a report was released that showed more than one in five UK small and medium enterprises are considering offshoring next year. The research was carried out by ICM in November on behalf of SLASSCOM, the development body for Sri Lankan outsourcing.

I think I mentioned it last week but I am going to have to reiterate that 2010 looks like it is going to be a big year for the outsourcing and offshoring industry. Outsourcing is good.