A friend of mine is an experienced credit analyst. He lost his job recently as a result of outsourcing. He learned that his employer initially hired four people in China to do his job and asked me how this could be cost-effective. I suggested the following: Assume that your salary and benefits total $50,000 a year. If your four replacements earn $12,500 a year or less and receive no benefits, your employer saved money by outsourcing your job.
While my friend wondered why he lost his job, I thought about how to prevent this from happening to others, and came to these conclusions:
- Nothing will prevent companies from exporting credit jobs meaning that nothing I suggest will guarantee your job will not be outsourced
- Many companies in America have been successful in outsourcing various credit related functions
- Corporations have an obligation to reduce costs when it is practical to do so. Therefore, it is essential that your work is done effectively and efficiently, and that you find ways to do your work faster and better
- One clear advantage you have over outsourcing is your ability to communicate easily, directly and quickly with your customers, with your sales department and senior management. Make sure you are doing exactly that
Knowing why companies decide to outsource is the first step in helping safeguard your job. The main reason companies outsource is to control costs by saving on salary and benefits. Performing your job in the most effective manner and communicating this effectiveness to management is one way to make them aware that potential cost savings associated with offshoring may not be attainable or ever preferable to the status quo.
Michael Dennis’ Covering Credit Commentary. Michael’s website is www.coveringcredit.com.
The opinions presented are those of the author. The opinions and recommendations do not necessarily reflect the views of CMA, or their Officers and Directors. Readers are encouraged to evaluate any suggestions or recommendations made, and accept and adopt only those concepts that make sense to them.