Niyamath Parveez

Percentages can sound quite large but everything has to be considered in relative terms and viewed in concept. A small firm may outsource 75% of their workload, which is obviously a huge factor for them but if a massive firm outsources 5% of their workload, it may still be a larger amount of workers or money involved. This should reinforce the fact that statistics and percentages, by themselves, prove nothing and there has to be an element of context attached to all figures and findings. Therefore, the news that Airbus is aiming to outsource 20% of its work by 2020, is eye-catching but is it really going to be a changing aspect for the firm?

The first step of putting some realistic figures on the findings is to look at the number of people the firm hope to add to their employment circle. The first step of this move will occur in 2012 where the first is hoping to dramatically increase its current production facility in Bangalore. The whole world seems to have moved to India in the hope of gaining benefits and lowering their labor costs and Airbus are no different. At this moment in time, there are currently 120 employees employed by Airbus but this is going to change dramatically. Within the next three years, the figure of employees based in Bangalore is expected to rise to 400. An increase in this size would be noticeable in any firm, so it is fair to say that sizable changes will be happening for Airbus and how they undertake their business.

Of course, for every positive action, there can be an equal and opposite reaction and it would be natural for people to think there may be other job losses before these new jobs appear in Bangalore. Again, this would not be a surprise because so many firms around the world are doing the exact same thing, which means that to not outsource means to risk being left behind. There are obviously a number of emotive issues when considering outsourcing and job losses is always going to be a tricky situation but if this what is required to keep a firm at the top of their game, then this what needs to be done. To stand still and let your opposition and rivals reap the benefits will lead you to falling behind and this is something that Airbus cannot risk.

Critics of the move towards outsourcing, particularly in the airplane industry point to some notable failings for other major firms who have taken this route. Boeing found that there were some issues regarding the quality of some of their production features and when dealing with airplane manufacturing, safety cannot be compromised. Saving money is an important issue for all firms to strive for but the pursuit of profit cannot come in place of safety and high quality. The eternal trade-off between the different elements involved with outsourcing will ensure that firms need to consider a lot of aspects before choosing which outsourcing partner to work with.