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Outsourcing Dilemma: The Search for Competitiveness, The

Book Description

Outsourcing of some business functions pre-dates the technological revolution of the latter part of the 20th century. Nevertheless, 99 percent of outsourcing would not be logical or necessary if it were not for the constantly changing and improving technology.

Despite the circumstances, most organizations are left with no alternative but to keep trying to improve their systems. They then have two basic alternatives. They can either do it in-house by buying the necessary equipment, software, and external help, or they can externalize the function completely by taking one of the outsourcing routes.

Research undertaken into project failure rates at the beginning of 2000 has provided the author with a unique insight into the real level of success obtained from choosing either internal or external solutions to the competitive problem.

The Outsourcing Dilemma presents the arguments for and against outsourcing and suggests ways in which the enormous problems of maintaining competitiveness might be approached.

The book examines:

  • the changing times that have brought about the need to be competitive in all functions

  • the various internal solutions to the problem of maintaining competitiveness

  • the advantages and disadvantages of the external solution of outsourcing

  • the extent to which outsourcing is being practiced and the functions being outsourced

  • the growing range of alternatives to full outsourcing

  • a range of factors that potential clients should know about outsourcing providers

  • factors to consider when choosing an outsourcing service provider

  • alternative options toward achieving lasting competitiveness

The Outsourcing Dilemma includes controversial case studies highlighting the advantages and potential pitfalls of outsourcing, and a revolutionary long-term competitiveness option - "Business Satellites" - that does not require short-term dramatic change, expense, and disruption.

Competitive advantage is a choice. Who are you going to entrust it to?

Table of Contents

  1. Copyright
  2. Financial Times Prentice Hall
  3. About the Author
  4. Introduction
  5. Changing Times in Commerce
    1. Introduction
    2. What is so different about competitiveness now?
    3. Benchmarking
  6. How Can an Organization Become and Stay Competitive?
    1. Methods normally taken to improve performance
    2. Management techniques developed to improve performance
    3. The packaged software solution to performance problems
    4. Using management consultants
    5. How effective are performance improvement projects?
    6. Are you just tinkering with the systems?
    7. Becoming ’world class’
    8. The reason for concern
  7. The Outsourcing Alternative
    1. Outsourcing defined
    2. Outsourcing terms
    3. The development of outsourcing
    4. Getting good performance from a service provider
    5. Conclusion
  8. Reasons for Outsourcing the Various Business Functions
    1. IT outsourcing
    2. Business process outsourcing
    3. Facilities management
    4. Outsourcing from inside the industry
    5. Contract manufacturing
    6. Insourcing
    7. Software maintenance support
    8. Outsourcing marketing functions
  9. Variations on the Outsourcing Theme
    1. Value added partnership
    2. The service provider’s shared service centres
    3. The client’s own shared service centre
    4. Joint ventures
    5. Application service provider outsourcing
  10. Points to be Aware of When Choosing a Service Provider
    1. The tendency to take on unsuitable work
    2. Use of sub-contractors
    3. Size matters!
    4. Different clients, different quality of service
  11. The Process of Choosing a Service Provider
    1. What are your main reasons for outsourcing?
    2. How do you find the right outsourcing service provider?
    3. How many providers should you approach?
    4. Developing the partnership concept
    5. Staff issues
    6. Finding a suitable provider by sole sourcing
    7. Usual reasons why sole sourcing takes place
    8. Other reasons for taking the sole sourcing route
    9. Using more than one provider
    10. Managing more than one provider
    11. Pre-contract work
    12. Some things a provider needs to know
  12. Potential Drivers of Outsourcing
    1. Improved cash-flow
    2. The need to relocate
    3. Non-competitive systems
    4. Consolidate the latest improvements
    5. Release scarce resources for other areas of business
    6. Strategic reasons
    7. Risk reduction
  13. Risks and Concerns for Both Parties
    1. The client’s perceived risks
    2. The client’s concerns
    3. The service provider’s pre-contract risks and concerns
  14. What Does All This Mean?
    1. The competitiveness problem – conclusions
    2. The in-house solutions to competitiveness – conclusions
    3. The outsourcing solutions – conclusions
    4. Some other conclusions
  15. An Alternative Way of Approaching the Competitiveness Problem
    1. Business satellites
    2. How a local authority might develop a BS venture
    3. SDC’s second joint venture
    4. Further explanation of the business satellite examples
  16. Starting the Outsourcing Process
    1. Finding a suitable partner by creating a competition
    2. Creating an RFP and dealing with the providers
  17. Before Contemplating the Outsourcing Transition
    1. The need to plan
    2. Service level agreements
    3. Service performance measures
    4. Continuous improvement to the service
    5. Management of the contract
    6. Other factors worth considering prior to the transition
    7. The service provider finally assumes control
  18. The Essential Elements of the Contract
    1. The contract structure
    2. Key issues
    3. Details of the transition
    4. Termination of agreements
  19. The Rights of Transferred Staff
    1. TUPE requirements
    2. Difficulties which can arise
    3. Redundancy issues