Outsourcing in the automotive: does the abuse hurt?

Hugo Blanco

Hugo Blanco © Nearsoft

I’’ve already largely expressed my opinion about the growing precariousness management in the automotive field, which finds its highest expressions in the outsourcing.

It was a year ago….

We were convinced that some strategic position couldn’t be the subject of outsourcing and that others, even these strategic ones, during the start-up and re-engineering, could be optimized through the outsourcing.

Then, as for all the positive things, men and Italian ones find the way to ruin all.

So in 2012 there was, as consequence, a proliferation of outsourcing in used field, in the guarantees, after-sales, in training, in the IT one and even in the communities and social networks and in general.
The necessity of fixed costs and in easy way to cut, although very high, deletes every positive element in outsourcing.
The call for tenders were won to the downside and a few market leaders, through the VAT, the Cooperative and other stuffs, hire young graduates for a better future…. Rather they hired!

Yes because the puzzling thing is that now, to win races, the companies not only lower prices and defend themselves with various form of temporary work, but they say to the contracting company (OEM law):
If yesterday for 100 I gave you a young graduate to take advantage of him as you want, now for 90 I give you a 40/50-year-old, who cannot even think to react and you in exchange have quality and submission to knockdown price, isn’t it much more convenient?”

There are, although, implications at medium/long term which onòy few people seem to see:

  • In the case of young underpaid graduate, he will go away as soon as he can, and in any case his skill has yet to be tested;
  • In the case of trained professional, just because he knows to be tapped, and without a future possibility, he will find the best balance to use the situation to his advantage.

Most of these tenders are divided among different people and so , for instance, we find the collateral management supervised by more people with apparently similar policies but with different behaviors… with all the consequences of the case!

Another aspect that is close to me and perhaps represents the revenge of the weak… after year of uncertainty and illusions, the contract ends, all of a sudden, without any justification and after promises of employment.

Well you can imagine in that family as it will be considered that brand (rightly or wrongly)!
It may seem superfluous, but think about a brand, a family, sometimes among brothers and sisters there are more than 4/5 families, 2 cars for family and change it every four years, servicing and assistance .
In addiction think that every OEM could have hundreds of outsourced workers… well it is not so marginal, or not? But above all, is it convenient?

What’s the solution? Simply move from words to deeds!

STOP talking about “human value” when we outsource every work figure to have the control of the costs (and only those, perhaps), the actuality teaches us that the costs can be cut up to a certain point, farther there is the chasm.

So start to eliminate the outsourcing “Without the added value”, change it with fixed-term contracts, analyze the cost/benefit ratio of individual activity and, in the case, we default…. Otherwise we say “we joked ,the human factor is secondary” and leave it all to “ third parties”!

…and… while we’re at when we have to cut, let’s do it also to the Chief who authorized some bad contract!
Starting to those that improperly, during the meeting, deal with Corporate Social Responsibility or Ethics behaviors.

P.S.: for now we postpone the interns… but only for the moment

Translated by Federica Izzo

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