Risk Management

Companies like yours need to consider the ethical and moral issues of outsourcing and what impact it will have on the lives of the workers, share holders and community at large. When we start insourcing technical agencies from other countries who are totally unfamiliar with how business is run here, we need to reexamine our priorities and abilities to let companies come over here from India provide temporary help, by letting those here on H1 Visas and driving down the wages of American workers, due to the cost of living, and value of the dollar differential between the U.S. and India or China.

Risk management or risk mitigation are keys issues to the success of decisions being made on how to manage a project. The risk is only in the understanding of the complexity of the economy and where to get quality and reliable goods from suppliers that you can trust that have a good record of delivering on time and a low and consistent cost to the company. In project management, communications is key to understanding what is going on in the company and its individual organizations. The risk strategy is having an educated and "gut" feeling of how the prices of equipment, products, or services with fluctuate in prices over the quarter. Due to fluctuations in gas prices due to the greed of oil companies, and lack of governmental monitoring of price gouging, we are subject to higher costs of all food goods, and anything delivered on a truck with diesel. Diesel is actually cheaper to produce than gasoline, but due to its high demand in the trucking industry it is higher. These higher costs are added to higher delivery costs for all goods, thereby the costs of the goods have to go up as well. It is an inflation spiral in costs and inverse lower costs of wages to employees due to insourcing of employees that will take $10/hr versus $40/hr due to shared housing of Indians in the United States to share costs of 6 people in an apartment so they can afford to live here and make 75% less wages than their American counterparts.

Outsourcing Today

As i said in my response that the outsourcing has destroyed all unions and achievements in fair employment in this country by outsourcing to countries where the labor conditions and pay rate is that of slavery. We find outsourcing a method to bypass human rights, employee rights and all the Labor Acts and achievements made in the 1960's and 70's for labor groups. There may be a comprehensive and competitive process by outsourcing but we should only outsource if the employees rights and working conditions are the same as in the United States. There are a growing lack of environmental issues. Part of our $14 trillion deficit is due to outsourcing and borrowing money from India and China who we have outsourced our clothing, electronics, food, and too much of the things we treasure. Quality was made in Japan whom I respect as a quality outsource. But China, India, Philippines, Nova Scotia, and Middle East don't provide for the same human rights, work conditions, environmental consideration, Labor Laws, Labor Acts that we passed in the 1960's to protect workers rights. We need to impose tariffs and give tax incentives to companies to reverse ALL of their outsourcing. We need to reverse the trend, spend $50 billion on 100 desalination plants all around the United States to provide clean and low cost water to people and farmers. This would allow farmers in the United States to compete with foreign countries. If we have lower energy costs, which is a prime component in manufacturing costs we could actually compete with other countries. Instead of trying to compete with other countries, we give up, and give away trillion of dollars in potential revenue by having good manufactured in the United States. It effects our Gross National Product, quality of life.
I was assigned to outsource electronic components to China for a semi-conductor firm. The cost was $50,000 to have the parts machined locally, but only $15,000 to be made in China or South Korea. But, by the time the parts came here, the additional costs of shipping and reworking the parts made the cost almost null and the same as having them made here. Why should we continue to outsource goods to China when they have horrible human rights violations, environmental neglect, poor working conditions for their people, ignore protocols for handling of hazardous recycled goods, they ship toys with poisonous lead paint, plastics when ingested are psychedelic drugs, poisonous mothers milk, poisoned dog food, defective goods.
The other danger in outsourcing I have found is the increase in counterfeit goods coming from China and other countries we outsource. They would make the goods for a while, close their doors and open a new company, entirely Chinese, to manufacture the same product under a different names with all profits creating many billionaires in China. They spend trillions on new cities, new skyscrapers, $500 billion on high speed trains thorough out the continent, while we can't even get one high speed train built going 100 miles. Caps studies on outsourcing don't consider the global impact of giving away manufacturing of good overseas so that we create iceberg companies in the United States, 10% visible with high paid executives and 90% of the company overseas, for windfall profits for the United States company. When will it end, how will it end, only by electing congressmen and a president that believes in protectionism philosophy to safeguard the Gross National Product of the United States.