With all the outsourcing, is anything made in the USA anymore?

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Enough with all this outsourcing talk!  This is the season where many of us are overtly shopping.  Economic circumstances may be forcing greater frugality but, as you are scanning shelves for stocking stuffers and gifts, take a moment to read the labels.  When I did this yesterday, none of the products on the shelf were made in the USA.

If you’re thinking globally about the events that led up to where things stand today in the USA economy, it cannot all be assigned to fiscal irresponsibility on the part of individuals and/or government.  Simply put, the root cause culprit is greed and any business who is outsourcing to overseas resources is contributing to the problem.

During my adult lifetime, from automobiles to toothpaste production, I’ve witnessed the discontent caused when corporate financial decisions were made to improve shareholder earnings.  Opposing forces clashed at annual meetings as the affluent passed through the picket lines of the affected employees.  But it didn’t stop or slow down the processes that have embraced offshore outsourcing and speeding the erosion of the financial foundation of the USA.  Since the early 70’s when this began, more and more US citizens have been put out of work and entire communities have been hobbled by the closing of manufacturing plants and businesses that once enabled them to thrive.

A trending online business is training that teaches internet entrepreneurs how to use offshore outsourcing for parts of their business.  While this may enhance one’s bottom line, these business owners seem to have lost sight of the larger picture.  By sending their business offshore, they are contributing to the problem that their training seeks to solve, in my humble opinion.

I’m not just ranting.  Over the years that I’ve been in the Online Marketing & Branding business, I’ve acquired new contracts with many USA business owners who have been burned by using offshore outsourcing tactics.  When those people seem to expect me to lower my rates based on their bad experience, I’ve had to remind them that whatever happened before they began working with me does not create an obligation on my part to make it better for them.

My rates are my rates, and I’m worth every penny! 

For new entrepreneurial technical talent who are just starting out, using freelance sites to acquire new clients without incurring advertising expenses is a valid but temporary tactic.  I only could do it for about 3 months because devaluing my services was not good for my business … or my self-esteem.  When buyers who had invited me to bid pursued me and begged me to reconsider, I would sometimes calculate out their proposed hourly rate in an effort to inform them that what they were willing to pay was below minimum hourly wages in the USA.

Pretty simple project. Please bid reasonably.

These are words that you might find in a post on a freelancer site.  What are the parameters of a “reasonable” bid?

Budgets for gigs with statements like these normally range from $5 – $200 USD, and they assume they will win by outsourcing to an offshore developer.  When the low end of the proposed budget is $5 USD, the definition of “reasonable” is guaranteed to unreasonable for anyone who is trying to sustain a lifestyle in the USA.  Scanning through the requested deliverables, qualified AND experienced wordpress website design talent can see that the level of effort involved in meeting their expectations will consume no less than 20 hours of development and iteration time, including the iteration time that is part and parcel of the client not having a clear idea about what they want until they become aware of what they can have.

Much to my amusement, many such postings state they will only consider USA resources.  Either these buyers are lacking an understanding of what their outsourcing request entails or they don’t care to pay fairly.  I applaud wanting to control business operating costs but I can’t help wondering if they would ever consider a position that paid a maximum of $2 an hour?  And, with all due respect to anyone who has put something like this on a freelance posting, if someone is incapable of doing the work themselves in a few minutes time, how can they possibly characterize it as being simple?

More importantly and back to the point of my post:

When will those racing for wealth by using offshore outsourcing understand they are undermining themselves too?

Freelance outsourcing service values are only the latest in a long chain of progress that has cascading peripheral effects for us all.  As our country’s dependency on petroleum products shows no signs of lessening and the cost of a loaf of bread spirals upward, we all are feeling the pinch in our pocket books.  When manufacturing began moving offshore during the late 70’s, the source of our country’s expertise was described as being the service industry.  The train has left the station but which way is it heading?  After we’ve outsourced our services industry,  what will be left?

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Creativity in Business

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Normally, we associate creativity with artists who apply their craft in written communications, visual arts, or music.  But, if we strictly define creativity as artistic talent, we fail to appreciate how it is involved in the apparently mundane aspects of our lives.  That is really a shame, for nothing of life is truly mundane.

An acceptable definition for creativity is having the ability to find solutions where none are apparent.  This is often seen with children who are learning something new.  Less obvious are the toiling movers who manage to fit your heirloom dining room table through a narrow hallway without destroying the furniture or the walls, which is certainly admirable. 

In business, creativity is characterized as thinking outside the box, creative problem solving, and maybe even critical thinking.  Has your business creativity ever been stifled by colleagues or clients?  Have you ever inadvertently stifled them?  There are so many ways this can happen, and this article exposes a few of them.

You Want it When?

During my corporate days, I had an image of a person beneath a thumbscrew with a caption that read:

Turn it again you SOB!  I work well under pressure!

The poster was irreverent and got many laughs but there really was no truth in it.  The fact of the matter is, people don’t perform as creatively when severe deadlines are imposed.  While the tasks may be completed on time and satisfactorily, there is kind of a hangover after the fact for those involved that can literally immobilize them for days after the effort is over.

Time pressure disrupts one’s ability to fully engage themselves in the solution.  True creativity requires an incubation period.  In my business, premium rates are applied to “rush” projects for good reason.  When we come to terms on delivery dates and pricing, another dark side can be introduced by anxious people.  Folks who are in a panic with a high need to feel in control can upset the creative flow with interruptions.  To avoid this possible problem, I’ve learned to suggest a date in advance for status updates.

Please Put Your Weapons Away

With morbid fascination, I’ve observed threats that some people have  imposed in an effort to inspire.  This was more or less a daily fact of life on the job in the information technology industry.  As a Realtor®, a client’s posturing that they would withdraw their listings didn’t motivate me to change anything about the marketing plan we had agreed to at the time we wrote our contract and the listing still sold within the pricing and terms we had set forth at that time.

These days, as an internet entrepreneur, oppressive behavior serves as a signal that it might be time to fire the client. Proceeding with people whose projects are fraught with self-serving drama is rarely worth the effort involved in their high maintenance, although some empathy and discussion can sometimes alleviate the  problem.  Yet, if someone wants to be a unhappy, they want to be unhappy and it is never worth entering into a battle of wills.  Let them be right and move on.

If we enjoy what we’re doing, getting out of bed in the morning is never a chore.  Happy liaisons are not only much more fun.  Working with joyful people induces higher creativity for everyone involved.

Roles and Responsibilities

Casting a stereotype, based a limited perception about the skills involved in that role, can be limiting for the individual contributor and dangerous for the type-caster.  Consider your bookkeeper, for example.  The joke associated with creative financing is well known to us all but, when your accountant suggests a financing solution that you’ve never heard of before and it helps you to forward a business goal, their creativity is a huge asset to your business.

Financial Incentives May Not Be The Answer

A study on business creativity suggested that tying compensation to overall team results isn’t necessarily the ticket for inducing higher creativity OR better solutions.  In fact, the study’s results demonstrated that people who were focused on bonuses were less productive than those who worked for the love of the effort.

Although there is a somewhat common belief that people will work harder if they are rewarded through performance incentives, concerns about negative compensation effects lead people to risk aversion, which ultimately affects creativity.  Ranging outside the norms of what is imagined is an outcome of being truly interested in the effort at hand, knowing that it’s OK to try anything that has potential to work, and believing that one’s suggestions are taken seriously and that their contributions are valued.

How this Relates to VirtuallyMarj.com

As a WordPress website designer,  the truth in the tagline at Codex is not lost on me.  Even though most people will never truly appreciate the elegance of some of the code they use, which the tagline describes as poetry, one’s ability to envision and develop it certainly requires a special sort of creativity.

Personally, I get much more satisfaction out of consulting with clients, who have come to me for help with their marketing and branding strategies, and seeing the light bulb illuminate.  This happens when our discussions unearth something about their pursuits that is not obvious to them because they are too close to the proverbial forest to see the trees.  That is fun!

Right Brained or Left Brained … Does It Matter to Creativity?

Our right brains influence our creativity, so science says.  Here’s a place for you to take a test, if knowing your brain’s preference is important to you.

I’ve known remarkably creative people whose claim to fame was clearly left brained.  The most renowned example is a former real estate client and friend of mine, Leo Hurwicz, who achieved Nobel Laureate status for his Economics Theory at the age of 90.  It was a privilege to know him and and memories of our talks are truly treasures for me.

His special skill was mathematics, which is clearly left-brained and analytical.  Yet, his creativity allowed him to see beyond the equations and develop a theory that explained financial markets and ultimately garnered world-wide recognition.

So, the moral of the story is to not hold yourself back if you are left-brained by nature.  Creativity is the product of what you believe is possible for you to do and it is nurtured by an environment where your ideas can expand to reality … regardless of your brain’s bias or your assigned role.

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Human Capital and Local Economic Constraints

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In my work as a freelancer and service provider, I frequently find myself in competition with overseas talent whose rates don’t even meet minimum wage requirements in the United States.  While I am all for supporting the global economy, it is impossible for me to meet their prices.  Sometimes my clients decide to go for the lowest cost bid, even though they would prefer to work with me … or so they say.  And sometimes my clients return to me with a partially completed project and a story to tell.

What is funny about this is that there are also overseas buyers who know they could acquire talent for a lower rate who grasp the importance of working with someone who is readily available and also has skills that meet the needs of their projects.  I’ve delivered projects to business owners in third world countries who admitted this was true.

In the early 1990s, when corporations began to shut down divisions of their companies and eliminate jobs, to subsequently open them up again on foreign soil where labor was cheaper, there was a public outcry.  Corporations were accountable only to their shareholders, however, so the devaluation of human capital became a common method of meeting those demands.  And what has been the effect on the global economy?  It is my opinion that liberal credit policies are not the only contributors to the current crisis.

Wikipedia defines Human Capital as being the stock of skills and knowledge embodied in the ability to perform labor so as to produce economic value.  The wiki goes on to say that it is the skills and knowledge of a worker acquired through education and experience.  I acknowledge that some overseas service providers have equivalent skills, education and experience to a US based service provider.  I also acknowledge that some overseas talent fall far short of the line drawn in the sand.

Until the effect of offshore outsourcing begins to affect your income, it is easy to explain away choices that keep a local service provider from working with you or declare that US labor prices need to be lowered so offshore competition is healthy.  I value your insightfulness and honor your decisions.  After all, you are in business and the economics of your projects balanced with your sales will define the return on your investment.

I would like to present another side of the coin for your consideration.  If your project is intended to target the market whose labor rates you feel are inflated, your sales may be affected because your target market has to make difficult choices about how to allocate the income they are able to attract.

In the end, there always is a balance to things.