StepBeyond.com Electronics Manufacturing Job Board and Outsourced Recruiting

This is my thoughts on a post by Charlie Barnhart titled "Risk Factor #2: Fewer resources at OEMs worldwide" http://bit.ly/tuKpD4


The New Trend: Outsourcing Outsourcing
Thanks for sounding the trumpet, but I wonder who cares? Hired gun executives are building a track record and a resume while looking for the next opportunity, (I have headhunted 20 years in this industry!). Certainly not Wall Street. They are seeking sound bites to justify stock trades by driving on emotion. 

In my view, as an Entrepreneur with Farm roots, Capitalism worked best for everyone when the Founder/Owner delivered better products and services. The Owner cares about the legacy of his company and his people. The hired guns are motivated to increase their compensation and stock value, irregardless of the long term consequences. 

There is rising a wave of Outsourcing Consultants. They manage the OEM's outsourcing on the ground in "low cost regions". This saves the OEM a fortune in travel costs and mistakes. Thus what you say is true Charlie, the OEM outsourcing staff can be almost eliminated. 

Perhaps the real question comes down to: What is the real value of an company? Does it boil down to "intellectual property"? 
The Stock Market is NOT rational. It is emotional, and not an accurate representation of risk, profits, or the future. 
Remember the Dot.Com days when IPOs raised billions for companies that were no more than a small office in a San Jose business park.

You raise an interesting point. When will the first Board of Directors decide to outsource executive management?   
10 years ago I envisioned the day when someone would appear on the cover of a magazine, sitting on his/her bed, having conceptualized then next big thing. Then outsourcing design, manufacturing, marketing, distribution, logistics, repair...