Summary of the Key Points
This article starts with the recent rumor that major companies are massively terminating their outsourcing contracts on September 30th, and it clarifies the phenomenon that many people have vaguely perceived: major companies are using fewer outsourcing services. This is not due to discrimination against outsourced workers, nor does it mean that the outsourcing model is going to disappear completely. The essence of the change is that the traditional approach of relying on a large number of employees to perform standardized, repetitive tasks is on the decline. Behind this shift are two factors: the internet industry's shift from spending heavily to expand scale to focusing on cost reduction and efficiency improvement, as well as the rapid adoption of AI and automation tools. This development serves as a reminder to all professionals that the old strategy of relying on the prestige of a major company to secure a stable job is no longer effective. What truly provides job security is your ability to solve unique problems and how close you are to the company's core business.
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Detailed Explanation
1. The nature of outsourcing in major companies was essentially a "short-term staffing service"
Many people thought of outsourcing as a backdoor for major companies to hire workers, but in reality, it was always the most cost-effective option for businesses. In the early days of the internet industry, when companies were rapidly expanding, they needed to recruit hundreds of employees within two months to meet project deadlines. The formal recruitment process, including interviews, offer offers, and social security contributions, would take at least half a year. Moreover, the company had to continue to pay for these employees even after the project was completed, and in case of layoffs, they would have to pay additional compensation. Outsourcing, on the other hand, allowed companies to "hire" from third-party companies, paying by the number of employees or by the amount of work done. Once the project was finished, the employees could be dismissed without any additional costs. For young people who didn't get a formal job offer from a major company, this was a way to gain experience and potentially get a formal position later on. Even though the pay and benefits were lower, many were still eager to participate.
2. Outsourcing was first targeted for optimization because the tasks it performed could be easily automated by AI
Nowadays, companies are no longer just looking for cheap labor; they want to use their money wisely. The focus has shifted from expanding quickly to improving efficiency. Tasks that are repetitive and don't require much thinking, such as content review, basic customer service, data analysis, and preliminary testing, are the first to be automated. For example, video platforms used to hire hundreds of outsourced staff to review millions of videos daily, but now AI can handle 99% of the violations automatically, with only a small portion needing manual review. This means that the number of employees needed for such tasks has significantly decreased.
3. Outsourcing hasn't disappeared; companies are no longer buying "heads" but "expertise"
The idea that companies will stop using outsourcing altogether is a misconception. There will always be a need for short-term and flexible labor. What has changed is the type of outsourcing required. Major companies now look for teams with specialized skills that can provide immediate results, such as AI training or compliance services for overseas operations. These types of outsourcing are not only continuing to be used but are also in high demand. Traditional outsourcing companies that rely on unskilled graduates and low-cost projects are facing challenges, while those with specialized expertise are gaining opportunities.
4. The old strategy of using outsourcing to get a formal job from a major company is no longer viable
In the past, people planned to work as outsourced employees for a year or two and then hope for a permanent position. This strategy is now risky because major companies are reducing their permanent staff positions and are more selective about the skills they need. If you can't gain access to the company's core business or demonstrate quantifiable results, your job is at risk, regardless of whether you are an outsourced employee or a regular employee.
5. What really matters is your proximity to the company's core business
The recent outsourcing changes are relevant to all professionals. The safety of a job no longer depends on whether you have a formal position; it depends on how close you are to the company's core business. If your work contributes directly to the company's profits, manages key products, or involves dealing with crucial clients, you are less likely to be affected by cost cuts. The September 30th adjustment is just a reminder that the old ways of securing a job are no longer effective.
In conclusion, the key message is that your ability to solve unique problems and your involvement in the company's core business are the true determinants of job stability. This discussion about outsourcing is not just about outsourced employees but about all workers. The criteria for a secure job have changed, and what matters most is your contribution to the company's success.