The Wrong Way To Outsource

Chamath Palihapitiya Wades into Outsourcing

Cometh the hour, cometh the grifters

The problem with something so powerful as outsourcing is that sooner or later, the grifters will arrive.

Chamath Palihapitiya, the controversial tech billionaire, illustrated that perfectly this week with a tweet advertising a new incubator.

Simple premise; pick an existing software, and he’ll create an 80% functional version at a 90% cost saving.

So far, so good.

And how to achieve this? AI and outsourcing!

Right. Now, we have a problem. Well, two problems.

The perils of cutting corners

Let’s address the functionality issue first. An 80% feature version of ANYTHING is inferior by its nature.

There are looming questions such as ‘who will support this non-comprehensive feature set?’.

Heck, even a global behemoth such as Google can launch a bevy of products and abandon them on a whim, leaving users to twist in the wind.

This whole idea of churning out less-than-complete products for quick profits?

That’s not playing the long game.

The approach needs to be balanced; cost-efficiency and top-notch quality, hand in hand.

high quality and low cost
The perils of cutting corners

Not just cost saving

Now, the real bugbear; the insinuation that outsourcing is simply a cost-saving.

I’ve always espoused outsourcing as more than just a way to tighten the purse strings.

The true value of outsourcing comes from the people, not the bottom line.

It’s a goldmine for growth and innovation. Imagine connecting with brilliant minds from across the globe; that’s not just saving money, that’s striking intellectual gold.

I believe in paying for value, not just a lower price tag.

It’s about getting the best, not the cheapest.

Failure on both fronts

VCs like Chamath looking to move in this space can do better, must do better.

Turning the technological advancements of AI and the increased opportunities made available due to the global door-opening powers of outsourcing into a race to the bottom lowest common denominator is inexcusable.

But this is more than just a cynical cash grab – it’s unnecessary.

For enterprises of any size, the opportunity to recruit outsourced staff is unparalleled.

It should be seen as a means to tap into a wealth of affordable global knowledge, not simply a cost saving exercise.

The ethical approach

Outsourcing, AI, global teams – they’re not just tools for cost-saving.

They’re our allies in building businesses that don’t just survive, but thrive.

Let’s use these tools wisely, ethically, and see just how far we can go.

And saving money can be the cherry on top.

Woman chatting with virtual chatbot via mobile smart phone application, customer service
The ethical approach

 The question for your business

When you think of outsourcing, are you thinking cost savings, or getting a good job done?

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

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Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 450+ podcast episodes, and a comprehensive directory with 3,900+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.