- Some of the data processing for a state funded LiDAR mapping project in Minnesota was reportedly done in India.
- The firm had recently laid off 10 employees who were reportedly capable of doing the work.
- Senior management needs to weigh the short term profits against the possible long term damage to the brand when considering offshoring.
In a recent article written by David Schaffer from the Star Tribune based in Minneapolis-St.Paul he reports that legislators are upset about the offshoring of work involved with a state funded LiDAR mapping project. The purpose of noting this is not to pass judgment or criticize, but to make readers aware of the potential consequences of making this kind of decision – especially where government funding is involved.
It turns out that the firm had recently laid off 10 employees that had been doing similar data processing work. The chairwoman of the environmental finance oversight committee wanted to see $5 million in additional funding conditioned on the work being done in Minnesota, but the sponsor of the legislation was told that putting a no-outsourcing clause in his bill would make it unconstitutional.
There are no easy answers to this kind of situation. This is a tough enough issue without the added stress of the economic climate that we find ourselves in, and it is not going to get any easier any time soon. The senior management of firms are under a lot of pressure, but they have to be sure that offshoring is a wise decision, especially under these circumstances. In the final analysis the reputation and brand image, often earned over many decades, can be at stake.
Thoughts?
