Software & Outsourcing

Friedman describes workflow software using many examples…and words.  However, to simply understand it: it allows companies to operate more efficiently through way of the Internet.  For example, Jill, owner of an expanding bakery, was trying to discover a way in which she could link all of her sales to one software database, and to allow her stores around the state to clearly communicate their daily sales and other pertinent information.  Once she found helpful software that could allow more ‘workflow’, she not only could do these things, but also send out emails to hundreds of customers and have access to other helpful tools to run her business.  This is just a simple example of what is being done today all over the world.  Workflow software was once a standard model that was easy and accessible to many around the globe.  However, today it has become a business, a competition to say the least.  Millions of dollars are dumped into the business of creating specified software for multi-million dollar companies. 

Another fascinating type of software is open-source.  What a clever way to share ideas and develop the Internet!  People from all over the world have access to the software and each can poke and prod at it until it becomes something big, perfect, and universal.  Just like a puzzle sitting on a table in a home where children, parents, friends… anyone can go to contribute on their own time, in their own way.  And, as pieces are added, some may be crammed into the wrong spot.  Perhaps Cindy is the culprit of misplacing a piece, but there is always Mary Mom to come along and replace it-edit per se.  Open-source software operates in this same way.  It can be proofed and reproofed until the software becomes perfect. 

It takes many people to generate something as genius as the Internet, and it takes even more people to keep it up and running.  However, the Internet is not the only machine that needs help from multiple sources.  Any business that is seeking to expand knows that outsourcing is the only way to upsize and generate money.  Outsourcing is the method to which product is distributed around the globe, or even locally, to accomplish a job efficiently (both time and cost).  Early in the book, Friedman told of an experience he had in India.  Accountants in the United States ship(ped) their work to India, have the work done by accountants there, and then have it returned.  In the meantime US accountants would deal more directly with customers and their personal needs.  

On a personal note; my father, a business owner, often receives parts from machining companies.  With his lasers, he places a mark on the parts and then ships them directly back to the machining company.  This is an example of outsourcing.  Granted, the machining company (or the accountant in the example above) could do the labor themselves, however it would take more time, spend more money, and let’s face it-the job would not be completed nearly as professionally.  Because of globalization, jobs requiring shipping and returning (which seem like a lot of work) are truly more beneficial for all parties involved.  Especially when other factors are considered such as time zones.  If a job, such as an X-Ray, is needed by the next day in Atlanta it can be shipped to Australia, studied, and have a diagnosis presented by the next morning in the US. 

The Internet has simplified businesses and their overall logistics. It has also paved the way for the work field to generate more money, in less time, involving more people.