Business - Written by Patrick Harnett on Friday, October 10, 2008 14:11 - 5 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.
5 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 [...]
Leave a Reply
Browse Content
- Car 2.0 - How a community builds a car
- Self-destructing data: The return of Internet privacy
- The iPhone, growing up digital, and my daughter's education
- The dangers of GeoTweeting: PleaseRobMe.com
- Playbor: When work and fun coincide
- Lessons in collaboration from B.B. King’s
- A decade of frustration ahead?
- Games, user experience, and retroactive Continuity--All enabled by platforms
- Survey: How prepared is the enterprise to lead in the age of unbounded data?
- When you ask customers to dance, let them lead
- Real world examples for collaboration ROI
- Will You Use Target’s Mobile Coupons?
- Lessons in collaboration from B.B. King’s
- Games, user experience, and retroactive Continuity–All enabled by platforms
- Survey: How prepared is the enterprise to lead in the age of unbounded data?
- A decade of frustration ahead?
- The iPhone, growing up digital, and my daughter’s education
- Real world examples for collaboration ROI
- Playbor: When work and fun coincide
- Security, security, security…
- When you ask customers to dance, let them lead
- Car 2.0 – How a community builds a car
- Good post Naumi,
I like how you relate the jazz band performance to customer ...
- Hi Marilyn,
Thanks for the quote! I agree that some of the most interesting...
- Hi Friends H r u? I hope all is well...This is very true! Most gamers I know hav...
- Wonderful rich thought provoking analogies and a re quote of a favourite quote f...
- Whitney,
Thanks, I will. Check out this post from me http://www.wikinomics.com...
- Online business games is really a very difficult thing to understand... But ofco...
- I recommend reading Cass Sunstein's Republic.com 2.0. Although the book really ...
- If only people spent the amount of time they do playing games like Farmville on ...
Business - Mar 11, 2010 8:56 - 0 Comments
Will You Use Target’s Mobile Coupons?
More In Business
- Games, user experience, and retroactive Continuity–All enabled by platforms
- Survey: How prepared is the enterprise to lead in the age of unbounded data?
- Real world examples for collaboration ROI
- When you ask customers to dance, let them lead
- Car 2.0 – How a community builds a car
Entertainment - Mar 9, 2010 16:58 - 3 Comments
Lessons in collaboration from B.B. King’s
More In Entertainment
- 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
- The rise of computational photography and the birth of camera 2.0
Government, Society - Mar 5, 2010 6:01 - 2 Comments
A decade of frustration ahead?
More In Society
- The iPhone, growing up digital, and my daughter’s education
- Playbor: When work and fun coincide
- Security, security, security…
- The dangers of GeoTweeting: PleaseRobMe.com
- Self-destructing data: The return of Internet privacy


[...] 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 [...]