"People should make sure they are getting the right service for the size of company they are. They should not have to shell out for blanket coverage. It's about striking a balance," said a [Federation of Small Businesses] spokesman.

I once worked at a place with only four employees that outsourced its ablution services. In other words, we had somebody come and collect the used hand towels and replace them with fresh ones. It would've been infinitely cheaper to buy new every week.

The company I'm currently associated with is often on the receiving end of much outsourcing. Yes, it's cheaper for the firms wishing to outsource as they don't have a dedicated workforce to pay on an ongoing basis. But, this is still an example of outsourcing of expertise. Subcontracting is also as old as the hills in the world of manufacturing.

It doesn't matter whether you outsource to your next building, next town, city, country or half way across the world - we all outsource if we don't have the in-house capabilty to deal with certain aspects of our business - whether it be a temporary peak in work we can't handle or certain things we don't have the expertise or inclination to do ourselves.