Double Outsourcing - A Double-Edged Sword?
June 13th, 2010Disruptive Business Models and Negative Incentives
Outsourcing has become a growing trend in a variety of industries. As firms become more specialized in the products and services they offer, the need to outsource certain tasks has become apparent. A small business will probably find it more cost effective to hire a tax accountant than do it themselves. They also will probably want to hire an artist to create their logo design and brand identity. This has all become intuitive to companies that need to focus more and more on their core business. But what happens when the service company out-sources its own contracts?
This model of 'double outsourcing' is relatively new in the business world. It leaves the service company with virtually no overhead, only control over marketing, advertising and administration. In the logo design realm, this means that designers from all over the world will be contracted to work on any given project at any given time, working through a centralized network to submit their work. This free-market mechanism allows designers to bid freely on jobs, set their own hours and work as they please.
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