It is interesting. At first glance, it appears that the outsourcing model is the reason for the lower costs, but I think it is really the approach, attitude and dilligence of the leaders that brought about the lower cost, not necessarily the payment model.
I tend to like this outsourcing model, but I’m not convinced that the oursource model couldn’t become just as bad if the leadership changes to one that may not have the integrity and focus of the founders.