Home
>
Small Business
>
Drivng Home the Point - An Outsourcing Story in China

Drivng Home the Point - An Outsourcing Story in China

A few years ago, I visited Beijing for the first time. At Beijing airport, I got into a taxi and paid 450 yuan (about US$54) to get to the city. I was horrified to find out later that the normal taxi fare for the same distance was 60 yuan!

The next time, I went to Suzhou from Beijing. My local friends advised me to take a plane to Shanghai airport and catch a taxi from there. They told me that the taxi fare from Shanghai airport to Suzhou should be around 400 yuan.

When I arrived at Shanghai airport, I saw a middle-aged man holding a placard, with "Suzhou, Wuxi" written on it. He wanted to charge 200 yuan for the ride.

That caught my attention! It was half the price I expected. I checked out the man-he looked pretty decent and it seemed like a good deal. And so I accepted the offer.

The journey

The man carried my luggage to his car, drove me to a nearby spot and asked me to wait. Five minutes later, he came back with another car and another driver. He explained to me that he did not have the licence to drive in Suzhou and had asked his friend to help.

Before parting, I paid him 200 yuan and confirmed with the new driver that he would take me to Suzhou. I transferred my luggage to the new car.

During the trip while chatting with the driver, I realised that he was on the way home to Wuxi, bypassing Suzhou. The man who had "contracted" him had paid him 50 yuan.

His car stopped outside the city of Suzhou. He told me that he was not familiar with the roads of Suzhou and would help me get a taxi.

Within a few minutes, he flagged down a taxi, told the taxi where I wanted to go, paid the taxi driver 10 yuan and transferred my luggage. The rest of the journey was uneventful and I arrived safely at my hotel, on time to meet my customers.

All benefit

There were three persons in this value chain. First, the man at the airport offered to meet my needs at half the normal price. He made his money by outsourcing the "production" to the Wuxi driver, who could do it at a cheaper cost. Second, the Wuxi driver "outsourced" to the Suzhou taxi driver for the same reason.

At the end, the man at the airport earned 150 yuan, while the Wuxi driver earned 40 yuan and the Suzhou taxi driver earned 10 yuan. I was the biggest winner because I saved 200 yuan!

The bottomline is companies should focus on what they are good at, and leverage on others' strengths. But today, many companies still try to do everything themselves in-house.

For instance, IT departments within big corporations try to develop applications that are available in the market-yet non-core to their business.

Many companies also think that manpower cost is fixed, so it is better to work with existing resources than to incur additional costs in IT applications or services.

They think that manpower cost is just basic salary, and forget about the other costs such as bonus and employee benefits, as well as overheads such as recruitment and rental. They underestimate their manpower cost.

The fact is unless you understand the actual costs of a particular process or project, it is difficult to decide if outsourcing is a better alternative.

Besides costs, the question is: can you do a better job than someone who specialises in the field? Just think of the Wuxi and Suzhou taxi drivers.

Source: http://www.justlogin.com

tidy up service Glenview ..

In The News:

New Android malware BankBot YNRK silences phones, steals banking data and drains crypto wallets automatically. Learn how this advanced threat works.

FDA approves first human trial for Paradromics' brain-computer interface that could restore speech for paralyzed patients through neural technology.

New phishing platform QRR targets Microsoft 365 users across 1,000 domains in 90 countries. Learn how to spot fake login pages and protect your accounts.

OpenTable now uses AI to track your dining habits and share insights with restaurants. Learn what data they collect and how to protect your privacy.

Google's discontinued Nest thermostats still secretly upload home data to company servers despite losing smart features, raising serious privacy concerns.

New Android malware NGate steals NFC payment codes in real-time, allowing criminals to withdraw cash from ATMs without your card. Learn protection tips.

DoorDash confirms data breach exposing customer names, emails, addresses after social engineering attack. Learn how to protect yourself from scams.

Concerned about Google's AI scanning your Gmail? Learn how to disable Gemini features that access your emails, Drive files and Chat messages for privacy.

Google warns Android users about dangerous fake VPN apps hiding malware that steals passwords, banking details and personal data from phones and tablets.

Apple's digital passport feature lets iPhone users breeze through TSA checkpoints this holiday season using Digital ID technology at 250+ airports.

A new phishing scam targets family photos with fake "Cloud Storage Full" alerts. Criminals steal credit card information through fake sites. Learn protection tips.

South Korean scientists create ultra-thin fabric muscles that turn clothes into robotic assistants, lifting 33 pounds while weighing under half an ounce.

Archer Aviation has acquired Hawthorne Airport for $126M to launch an LA air taxi network ahead of the 2028 Olympics, featuring AI-powered eVTOL operations and next-gen aviation tech.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Fake AI apps disguised as "ChatGPT" and "DALL·E" are flooding app stores with dangerous malware that steals data and monitors users without detection.

Fake buyers demand specific vehicle reports from unknown sites to steal credit card information from car sellers, but warning signs can help identify these scams before paying.

Android users can now manage apps across multiple devices more easily with Google Play Store's updated remote uninstall button in the latest update.

NASA's Perseverance rover discovers shiny metallic rock on Mars that could be a meteorite from an ancient asteroid, containing high levels of iron and nickel.

Holiday scams spike during Black Friday and Cyber Monday as criminals exploit your leaked personal data. Learn how to protect yourself from fake stores and phishing.

Commerce Department proposes TP-Link router ban over Chinese security risks. Learn how this potential prohibition could affect your home network and devices.

Hyundai AutoEver America suffered a data breach affecting 2,000 current and former employees, exposing names, Social Security numbers and driver's license information.

Washington court rules automated license plate reader images are public records, even when stored by vendors like Flock Safety, setting precedent for transparency.

Fake airline texts claiming flight cancellations are targeting travelers with convincing scams. Learn how cybercriminals steal personal data and credit card info.

Discover how iOS 26's new Adaptive Power feature automatically extends iPhone battery life by learning your usage patterns and adjusting performance intelligently.

New TikTok malware campaign tricks users into running PowerShell commands that download Aura Stealer, which steals credentials and authentication tokens.

Drivng Home the Point - An Outsourcing Story in China

Small Business