So probably 15 years or so ago, there was a campaign on television where one of the nation’s largest insurers spent A LOT OF MILLIONS to tell the story of how a few of their employees went to the SPCA to give their time for a day or two to groom some horses.
In modern times, most service-based industries base their pricing system on hourly rates. As with every pricing strategy, there are pros and cons, but as the product provided by service companies isn’t tangible, it makes it difficult to provide these at an amount that is fair, but still yields a decent margin to be worth the resources spent.
Businesses have been outsourcing for decades, contracting out work to a third-party for financial savings, or for capacity/capability reasons. The term “outsourcing” became popular in the United States near the turn of the 21st century, but the concept has been around for decades, dating back to the early ages even before slavery.
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