Job outsourced, employee fired

The perils of rational profit maximization

A guy outsourced his job to a Chinese company.

“The software developer, in his 40s, is thought to have spent his workdays surfing the web, watching cat videos on YouTube and browsing Reddit and eBay.

“He reportedly paid just a fifth of his six-figure salary to a company based in Shenyang to do his job.

“Operator Verizon says the scam came to light after the US firm asked it for an audit, suspecting a security breach.”

And he got fired. Well, that’s what happens when your job is outsourced.


4 Replies to “Job outsourced, employee fired”

  1. It seems like his managers have some questions to answer, like “Why were you paying an American $100,000 for work that could have been done in China (was done in China…) for $20,000?” If the answer is “information security,” fine, let’s talk about information security.

    1. There are various problems and risks with outsourcing. You can’t just compare salaries to decide if it’s a good deal or not.

      First, you have to get your legal and human resources departments to learn all about taxes, fees, and labor law in the foreign country.

      Next, you have to find some way to hire qualified people in a foreign country where none of the people who usually do your hiring know the language, recruiting customs, or other cultural oddities that influence how you evaluate a job applicant, not to mention how do you know if a given college or company on the resume is good or not, and how you confirm the facts on the resume.

      Next, you have to have some way to effectively manage people in another country, which can’t really be done effectively at a distance, so you have to hire local managers (see hiring problems above) or get someone you know to move to the foreign country.

      And then there is a risk that you will take an American team that is known to be able to do the job and replace it with an offshore team that just can’t seem to get it done.

      There is also the risk that laws or situations may change in the foreign country or the US that causes you extra expenses or forces you to drop the foreign office.

      1. Leaving aside problems with security, they could have promoted him – he knew how to get the job done. I wonder if someone will hire him on that basis, or if he could start his own business.

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