Yes, but it also means someone else’s responsibility to maintain the infrastructure (lower cost often times) and someone else is accountable for down time.
That’s the beauty of modern corporate capitalism. The upper tiers of management are shielded from any responsibility by their subordinates. Their subordinates then have a strong incentive to shift the responsibility elsewhere so it doesn’t fall on them. Paying someone else to take the responsibility does not actually benefit the company, except may be in the short-term, but it does benefit the people who get to make the decisions about it.
And if the service provider really screws up, and loses too many contracts, they either sell out to another company just like themselves, make further profit, and go back to doing what they were doing, or they shut down, form a new company, and go back to what they were doing.
The only people who can be hurt by all of this are the regular employees, who lose their jobs as part of the cycle, and, occasionally, the shareholders, who are never adequately represented by the board. It’s a prefect system where bad decisions only affect those who have no part in them.
Yes, but it also means someone else’s responsibility to maintain the infrastructure (lower cost often times) and someone else is accountable for down time.
That’s the beauty of modern corporate capitalism. The upper tiers of management are shielded from any responsibility by their subordinates. Their subordinates then have a strong incentive to shift the responsibility elsewhere so it doesn’t fall on them. Paying someone else to take the responsibility does not actually benefit the company, except may be in the short-term, but it does benefit the people who get to make the decisions about it.
And if the service provider really screws up, and loses too many contracts, they either sell out to another company just like themselves, make further profit, and go back to doing what they were doing, or they shut down, form a new company, and go back to what they were doing.
The only people who can be hurt by all of this are the regular employees, who lose their jobs as part of the cycle, and, occasionally, the shareholders, who are never adequately represented by the board. It’s a prefect system where bad decisions only affect those who have no part in them.