Laborgistics^® — the new outsourcing solution.

Laborgistics is a proprietary management model developed by IOS in response to the inherent flaws and shortcomings of the now-dated, traditional model of cross-border outsourcing. Laborgistics provides a fully scalable, global pool of quality-certified, economical labor, supported by a highly developed global sourcing network, expert management and support for inventory management and cost controls. It evolves the outsourcing relationship from a tactical response to a long-term, strategic outsourcing solution that allows companies to transform their operations. This process allows a company to focus on its core competencies — research, development and marketing — while its outsourcing services provider handles other business components.

Laborgistics methodology realizes long-term productivity gains and cost reduction through consolidation of management, more effective organization of global labor, and more efficient supply chain structures.

This evolution from outsourcing to Laborgistics means:

	Efficiencies created from this system will allow companies to focus on research and development
	New alliances will be formed and workers needed to bridge companies and these relationships
	New jobs will be created to manage the Laborgistics process, from clerical to management
	Training will be focused on higher level, management and technical jobs, as other jobs are moved offshore

Outsourcing Overseas

So, the good news for U.S. businesses is that the Laborgistics model creates jobs while saving companies money. Laborgistics provides jobs for workers in other offshore and nearshore countries who might otherwise not find employment, while allowing for more specialized training and skill-specific employment onshore. The result is a need for more skilled employees in the U.S. to coordinate the offshore and nearshore activities and management roles emerging from the transition of fulfillment, assembly, packaging, kitting and similar jobs to other countries that can provide a more economical workforce. New alliances are being formed and workers needed to bridge companies and these relationships.

Most customers rely on IOS for its workforce and do not need to relocate staff to offshore operations because of the high-quality, economical labor already available at those sites. As with any startup, there is an initial learning curve to be navigated before full production capabilities are reached. Typically, key foreign workers are sent to onshore facilities for training and, occasionally domestic employees are sent on temporary or permanent assignment to the IOS nearshore/offshore production center.

Unique Laborgistics management technologies bridge a global sourcing network with worldwide production and distribution centers, all unified under the codes of international quality standards: ISO 9001, SAS 70 Level I and II, USFDA, HACCP, U.S. Department of Defense certifications, Homeland Security certifications, and the principles of Six Sigma. With this unique structure, IOS presents a singular channel for comprehensive management of labor and supply chain, unfettered by the weaknesses of the traditional outsourcing model.

Compare the characteristics of Laborgistics to the outdated model of traditional outsourcing:

Traditional Outsourcing	Laborgistics
Tactical short-term maneuver	Strategic long-term solution
Based almost exclusively on a desire for rapid cost reduction	Based on transforming operations—allows companies to concentrate on the intellectual aspects of operations: product research and improvements, marketing and management
Partial solutions for specialized aspects of operations	Comprehensive, start-to-finish solutions
Operations-centric	Operations supported with expert management
Disjointed worldwide operations	Global network unified by management
Reduces costs	Reduces costs and enhances revenue by opening new global markets