3 ms·
The tragedy I think it's the idea is in the negative. Imo it is not a recipe of what you should outsource but rather what you must not. Don't outsource your co
by thanksgiving 9y ago
The tragedy I think it's the idea is in the negative. Imo it is not a recipe of what you should outsource but rather what you must not.
Don't outsource your core competency somehow became outsource everything else.
Something I didn't quite understand was a former employer of mine sold their office building and rented all but two floors of the building from the new owner. I never quite understood this.
- vinceguidry 9y agoIt's very probable that the firm simply didn't have the management bandwidth to do proper property management, which is a business all on its own and unless you really care about it, you're not going to be able to do it as well or as cheaply as someone who does. I can easily see how a company would prefer paying another company to provide a nice, delineated set of deliverables as opposed to managing workers to provide them themselves.
- roel_v 9y agoOwning a building return a few percent on the capital. Many companies can do better yields, and are restricted by capital. It only makes sense to sell and lease back in such cases. Also, it lets you shift expenses from capital to operational on your balance sheet, which is sometimes profitable in itself.
- pjc50 9y ago> sold their office building Short-term realisable profit and improvement to their cash position, at the expense of future cashflow. It can sometimes make sense if the business's return on capital is much higher than that of real estate, or the business is at risk of having to downsize.