Outsourcing has emerged as a contentious issue in the past decade. When someone says "outsourcing" when referring to a job, almost everybody thinks of some type of technology job going to Asia, particularly India. But outsourcing is more than just technology, but it is just as controversial. This past week, Qantas Airways had an engine blow up on one of its planes in Singapore, fortunately the plane safely landed and everyone survived. But now a mechanics union is questioning the airline's decision to outsource maintenance.
I would venture to guess that this, just like any IT outsourcing, has its problems if not done correctly. First off, is this something that should be outsourced. I would argue that no company should outsource its core service, for Qantas that would be flying people. Is maintenance of its aircraft a part of that core competencey? Maybe. If planes are crashing people won't fly that airline. Is there a company that can do a better job maintaining aircraft letting Qantas focus on customer service? Possibly.
In the end, I think if outsourcing is handled properly and the correct business functions are outsourced, then it works for everyone involved. Even people who may loose their jobs can benefit if they look for the right opportunities. Also, look at competitors and learn lessons from their failures or successes. If Qantas continues to have troubles, then maybe a different airline takes another approach to cutting costs. If an IT company has problems outsourcing, another company may step in and claim to be able to do a better job. The people who can be most innovative in an outsourcing world will have the chance to be most successful.
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