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Peter Drucker - Sell the Mailroom
The Wall Street Journal has twice published an article by business expert Peter F. Drucker entitled Sell the Mailroom (July 25, 1989 and November 15, 2005). The article includes compelling reasons why it makes economic sense for companies to outsource support services. We include excerpts from the article, below.
To read the entire 1-page article please click here.
Excerpts from Sell the Mailroom by Peter Drucker:
Support work is rapidly becoming capital intensive.
In-house service and support activities are monopolies. They have little incentive to improve productivity. In fact they have considerable disincentive to improve their productivity.
The productivity of support work is not likely to go up until it is possible to be promoted into senior management for doing a good job at it. And that will happen in support work only when such work is done by separate, free-standing enterprises. Until then, ambitious and able people will not go into support work, and if they find themselves in it, will soon get out of it.
However, if support work is done by an outside independent contractor it can offer opportunities, respect and visibility.
When in-house support staff are criticized, their managers are likely to respond by hiring more people. An outside contractor knows he will be tossed out and replaced by a better performing competitor unless he improves quality and cuts costs.
______________ The entire article can be found by clicking here.
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