Business - Written by Patrick Harnett on Friday, October 10, 2008 14:11 - 7 Comments
Out-Sorcery: How is Outsourcing Faring in a Recession?
Media outlets are rolling in clichés about the current economic nastiness (“The U.S. Sneezes, The World Catches Cold”). Warren Buffett couldn’t help himself with his “toxic Kool-Aid” references and a most recent Charlie Rose interview likening the U.S. economy to a “patient lying on the floor”.
The shockwave is moving quickly: venture capital stalwarts Sequoia Capital have been instructing their portfolio companies to prepare for a “doomsday scenario”. Cutting fat, eliminating redundancy, and finding the cheapest darn way to do business is now the imperative of all those wide-eyed, once-well-funded start-ups.
My dad once gave me good advice which I didn’t take. “Son, doctors, dentists, lawyers and teachers are recession-proof. Work smart.” For the most part, it holds true (it seems some lawyers are having a hard time). But it seems like you don’t need to be bricks-and-mortar or an M.D. to stay “recession-resistant”. Like magic, outsourcing marketplaces have been going like gangbusters despite economic woes.
The more people who take pages from Sequoia’s warning to slim down to essential personnel and services find that outsourcing fits the bill nicely. It’s like having talent attached to a spigot—you can match the resource-flow to your cash-flow (and work-flow) on-demand. A Reuters article boasts that Elance (a popular outsourcing marketplace) has increased billings by 65% this year—driven by the need for smaller firms to have a flexible, highly-trained workforce.
If this downturn finds you sitting on the couch, reluctantly watching daytime TV, outsourcing marketplaces could be just ticket to get you off The Young and The Restless and back to the ranks of the gainfully employed.
7 Comments
Wikinomics » Blog Archive » Super Mario and the Socratic Method
Wikinomics » Blog Archive » Remember Photosynth? Well, it’s old-hat now.
[...] 14th, 2008, 03:39pm Photosynth (ted talk, demo page, our coverage), a project acquired by Microsoft, made for one of the coolest tech demos to grace the internet in [...]
Mass collaboration should have a nice run with this market environment. Companies will be laying off lots of payroll and will be looking for consultants and free agents to do all their non-core functions.
Wikinomics » Blog Archive » Coworking – Making Lonely Freelancers Yesterday’s News
[...] been a boon for business, especially in tricky economic times. I’ve talked about it in the past, and Naumi has discussed collaboration as a must-have. But the focus with telecommuting and [...]
Riding Social Media’s Trojan Horse | Refinancing
[...] were never realized. Instead, initial positive media mentions of the initiative gave way to coverage of the criticism. And while Wal-Mart at least responded with reasonable grace, the group quietly shut down a few [...]
Due to global financial crisis companies and individuals are affected. Many workers are being separated from their jobs. However, with outsourcing businesses they experienced a massive increase and still expanding globally. Companies from small to medium level or even the larger ones have been outsourcing jobs simply to save money and it also helps the companies focus doing other more important tasks.
Phil
Note: have to re-post because it didn’t appear the first time the comment was submitted.
Enterprise 2.0, A Legal Risk? | Brooklyn & Enterprise 2.0
[...] [...]
Business - Oct 5, 2010 12:00 - 0 Comments
DRM and us
More In Business
- Facebook, Facebook, Facebook
- Survey: How are you using Facebook, Twitter, smart phones, and other technology platforms?
- Will Facebook be your CRM provider?
- Wiki Banking
- The importance of being competent
Entertainment - Aug 3, 2010 13:14 - 2 Comments
Want to see the future? Look to the games
More In Entertainment
- Lessons in collaboration from B.B. King’s
- CL!CK – LEGO’s fun social product development platform
- Peer Pressure 2.0: Farmville
- Online gaming more than just fun
- The NFL – The most protective league, attempting to control the uncontrollable
Society - Aug 6, 2010 8:19 - 4 Comments
The Empire strikes a light
More In Society
- Balance: customer receptivity vs. customer revulsion
- The Net Gen: Too plugged-in for parenting?
- Are you addicted to social media?
- The privacy discussion we need to have
- “The Data-Driven Life”: Who’s not interested in discovery?

Now available in paperback!
[...] St. Journal reports that surgeons are using Nintendo Wii as a training tool (see Dan Herman’s post on the subject) and this article talks about how songs that appear on Guitar Hero and Rock Band [...]