A ‘free trade’ model – or protectionism?
This philosophy is akin to the notion of free trade – which aims to be fair to everybody – as opposed to a protectionist approach under which one side seeks to extract the lion’s share of the value on offer. And, as in the international trade arena, while protectionism may appear to deliver short-term benefits there is invariably a price to be paid.
This price is all the higher, in both outsourcing and trade, when you look beyond the one-off deal to consider a longer-term relationship. If a company’s approach to outsourcing is to systematically auction off pieces of its business to the highest bidder or the lowest-cost provider, the market will fairly quickly recognize this behaviour and act in the same ...
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