Example Of Friedman Chepter 1.2 Creative Writing

Out of all the ten flattening forces of the world, I have experienced outsourcing at my work place in the past.
My experience with outsourcing came at a time when I was working for Diageo Plc, as a procurement assistant. Outsourcing is a process or arrangement in which an organization provides services to another company that could also be provided internally. Due to the efficiency derived from outsourcing, it has become a common practice in modern business and regarded as an intrinsic feature in business management.
At Diageo being a manufacturer and distributor of premium drinks, certain services have been outsourced. Such outsourced services include: information technology services in the company usually provided by the IBM Company, Transport and hauling services provided by DHL international, mailing and security services provided by the G4S security group as well as catering services hired from different service providers in respective countries of operation.
The advent of outsourcing for the services in the company is founded on the company’s management stand on the cost effectiveness of the strategy both in the short and long run. Such costs could be taxes, energy costs, staff training and costs associated with retirement benefits defined by labor unions and governments. The costs of employee health and insurance are also vested on the contractor to the advantage of Diageo. The proof of outsourcing being a beneficial and efficient strategy for the company is tabled on the fact that 80% of all people serving in the company are actually contractors. This serves the company to cut on costs of employee management and benefits while maximizing on outputs.
Despite the efficiency occasioned by outsourcing in Diageo, it is also encompassed by several challenges especially when the contractors encounter some experiences which that do not serve the interest of Diageo. A good example is the case of G4S who were hit by a series of tragedies involving the loss of money in transit also poses a big challenge to the reliance on such contractors. This however does not put a question on the contractor’s loyalty to Diageo: these are unforeseen tragedies which can befall any organization.
The contractors are very loyal to the company because they would like to retain their contracts at all costs against other competing contractors. Their loyalty is business motivated. Loyalty of the contractors to the company is the key determinant of whether the contractor continues providing their services to Diageo. When signing the contract, the contractors are required to consent to unconditional loyalty to the company and avoid any event or act that could lead to conflict of interest between them and the company. So far, the current contractors are very loyal to Diageo as evidenced by their concerted efforts to offer the best services and retain the contracts to their entirety. Loyalty to Diageo is however outlined in the Diageo Code of Business Conduct and each contractor must abide by the provisions of this code if they are to be contracted by the company.
The process of outsourcing in the company follows a procedure where the company will advertise such tenders as may be available, interested service providers bid for the same and the management of the company vets such applications to select the best provider for the contract.