Outsourcing motovation.

I was thinking about outsourcing again, and the subject of what benefit to the business results from outsourcing. As there are no costs saving for outsourcing the actual work, another reason had to be found, Pensions! News articles like; Are Pensions the Next Fiscal Crisis? and Whoops! There Goes Another Pension Plan have illuminated the chief benefit of outsourcing, the elimination of pensions. Many companies are more and more eliminating pensions in the form of contributions to 401K plans which do not need long term funding, many companies have been underfunding their pensions so long now that anyone approaching pension age should be leery of ever cashing in on one, at least without legal council. This has become the new cheat in hiring practice, promise a pension, then don’t deliver it. Or better, use the pension scheme as a tax free slush fund, then don’t deliver.

As a cautionary warning, if a big company offers you a pension, ask for cash, or have the money placed into a personal 401K or private pension fund. there is no sense trusting a company to look after their employees, that’s history.