There's a saying among outsourcing proponents that cautions companies to "avoid outsourcing your mess for less." The caution being that it is dangerous business to expect that your outsourcing vendor can fix a mess you haven't been able to clean up in-house — and they may even make it worse.

But the disturbing recall of Thomas the Tank Engine toys because of lead paint could introduce another less snappy but perhaps more important saying:
"Outsourcing a process doesn't mean outsourcing accountability."

As David Leonhardt explains in Wednesday's New York Times, the owner of Thomas the Tank, HIT Entertainment Ltd., outsourced production of the toys to the Chinese firm RC2 Corp., whose factory has been using lead paint for the past two years. Neither company has stepped up in any significant way to take responsibility. In fact, HIT e-mailed Leonhardt to say the recall was "clearly RC2's responsibility."

Oversight of third-party vendors is a topic that's gotten plenty of lip service from both providers and consumers of outsourcing. But the tale of Thomas the Tank and his lead paint shows that some companies are a long way from grasping how critical that oversight can be. — Suzanne Stevens

Go to story from the New York Times

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