Saturday, March 01, 2008

A business dynamic

Outsourcing is talked about as a way to cut costs. The trouble with this approach is that the bigger the operation the more business it must attract. Bigger operations may be less agile, and if they fail to adapt they may fall. Therefor big operations may pose a greater risk to customers over the long term.

I think the trick is for customers to get the most from big operators when the time is right, then have good exit strategies for when change is needed.

The bigger they are the harder they fall.

Of course well planned big operations can offer economies of scale.

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