On labour markets and side effects of outsourcing

Can we fairly say that outsourcing companies form the bricks of a new Iron curtain, but in the labour markets this time – not in geographical meaning? Is there going to be change in the lucrativity of being present at outsourcing markets when the economy picks up speed?

One of my theories is that outsourcing (HR) companies are pests, but ones that stick tight. They do not actually have value adding function, but they have managed to create a veil of importancy and acceptance in the top white collar population of companies.

I aim to bring into light some aspects of the outsourcing boom, which so clearly has attached securely and taken its ever-growing place in the markets.

What does outsourcing do, system-wise? Who pays for the salary and expenses of a middle man; tax payers, client companies, the outsourced, or someone else? Outsourcing is said to optimize the costs for client companies, but it may indeed work vice versa, adding overhead to the process – and, what to me is far, far worse, it may add a glass ceiling and segregatory fence within a comapany. Those who are organically part of the company have higher motivation, better benefits, and so on, while the outsourced slaves are picking what is left.

– offshore and outsourcing separated, offshore more to do with direct tax optimization and monetary issues. Outsourcing is the shift of a primary working function to some agent who is non-organic

– subcontracting is one form of “outsourcing”, though there is a fine difference to outsourcing. The similarities are in that in both cases the client company asks for a work effort, which is paid with money. Outsourcing however usually means a de facto longer, solid work utilization (called, “slavery” in this presentation) without the intention to make an individual part of the company

– where negative meaning is applied

– positive sides of outsourcing; instant, long term

– the European willing executioner of Master Plans: do we really need all auxiliary companies in the economy? How about streamlining, getting rid of the pests?

– the purely functional vs. flesh model (project vs. manpower outsourcing)

– research on effect of signal averaging, ie. getting medium talent

– how has interview times, efficiency, and green values been executed with new model?

– to-the-point quotes from people who have been clients at either side of a recruiting company


– outsourcing outlets are conveniently in major cities, at central locations. They resemble McDonald’s and other service industry outlets. Anyone can pop in from the street, and check out for a possible job. This is good for fluidity, and purging the psychological barrier to (re-)employment.

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