The Outsourcing Institute

Published by The Outsourcing Institute, this site provides information and advice on outsourcing and related sourcing strategies. In addition it provides contacts and opportunities to network within the industry. Free knowledge resources such as case studies, surveys, reports and interviews cover the outsourcing of business processes, IT, sales and strategy. Membership to the site, which is free and merely requires registration, entitles you to even … [ Read more ]

CFO Magazine – Human Capital Special Issue

With the problem of human-capital cost hikes reaching critical proportions, CFO devotes an entire issue to health care, retirement plans, IT/outsourcing, and perks.

Editor’s Note: topical and US-centric, but of value to those who care about these things…

When Offshoring Isn’t a Sure Thing

Gung ho for going global? Make sure to look beyond labor costs. Specifically, three major variables should be considered:
1. Transportation Cost
2. Capital Intensity
3. Lead Time

The Secrets of Successful Low-Cost-Country Sourcing

For many industries, the proportion of overall procurement needs sourced from low-cost countries will double within five years. But it’s a complex technique, demanding great flexibility and a careful balancing of often competing interests within a company. Here are some successful strategies.

Outsourced, But Not Out of Mind: Turning contractors into strategic partners

Outsourcing services to a third party is typically done to reduce costs. But it also holds many hidden risks. Our best-practice research shows how managers can address these risks and move beyond a cost focus to create value that delights customers.

Special Report: Outsourcers Lose Luster

Though outsourcing is booming, many users say they’re less satisfied than they used to be.

Table Of Contents:
* Special Report: Outsourcers Lose Luster
* Indian Outsourcers Grow Fast, Gain Prominence
* The Rise of Business Process Outsourcing
* Outsourcing Outlook: Exclusive data on the cost of outsourcing
* Try our interactive tool and find out how 12 major outsourcers fared in customer rankings
* … [ Read more ]

Making the move to low-cost countries

Migrating costs to low-cost countries (LCCs) has moved from being an “interesting idea” to an imperative for most industrial companies, but it’s a “must do” that too often is managed with ambivalence. On the one hand, companies see it as a critical piece of their cost strategy; on the other, too many firms seem to attempt it only half-heartedly. They aren’t sure which costs to … [ Read more ]

Buyer Beware

More companies than ever have experience with outsourcing. So why are deals still failing?

Exploding the myths of offshoring

Far from damaging the economy of the United States, offshoring should enable its companies to direct resources to next-generation technologies and ideas-if public policy doesn’t get in the way.

Editor’s Note: I admit I am not smart enough to fully get my arms around all the issues involved in the debate over offshoring; this article presents one of the strongest and most detailed pro-offshoring (outsourcing) … [ Read more ]

Finding the Right Partner: How An HR Sourcing Strategy Can Add Value To Organizational Performance

Outsourcing isn’t new, but the business theory behind outsourcing has never been more relevant to HR functions than today. Leadership is increasingly looking to HR for human capital strategies to help accomplish business goals. It is not enough that HR programs are efficient, effective, and competitively priced; management wants to see a return on these investments — through increased productivity, decreased turnover, and bottom-line improvements. … [ Read more ]

The Changing Face of China: China as an Offshore Destination For IT and Business Process Outsourcing

Long the world’s factory, China is now becoming an attractive offshore location for IT offshoring (ITO) and business process offshoring (BPO). These markets are expected to grow as the Chinese government continues to entice foreign multinationals. Similarly, Chinese-based ITO and BPO providers are working to improve their capabilities to capture business from multinationals in the United States and Europe.

This paper highlights findings in
A.T. Kearney’s … [ Read more ]

Offshore Outsourcing: What’s Working, What’s Not

The globalization of services, as represented by the sustained growth of business process outsourcing (BPO), continues to thrive. In this special report prepared in collaboration with consulting firm A.T. Kearney, Knowledge@Wharton explores several emerging trends in the BPO landscape. Among them: new competitive models that BPO providers are using to drive growth; the shifting geography of BPO locations; and the challenges and risks that constitute … [ Read more ]

Selecting an Outsourcing Provider—Art or Science?

Today, there are literally thousands of outsourcing providers scattered around the globe looking to serve companies everywhere, with a primary focus on the US and European markets. The multitude of different outsourcing providers, each with their own message or business proposition makes the selection process very confusing and somewhat overwhelming. Many companies, especially small to midsize companies, do not have any experience with outsourcing. They … [ Read more ]

Mark Goulston

Regarding outsourcing:

I wouldn’t tell employees what’s going on until you’ve come up with an idea or solution for what you’re going to be able to do for them so they can land relatively safety. A person’s first question is never Why is this happening? but What is going to happen to me?

Leveraging ITSM in a Multi-Vendor Outsourced Enterprise

This article discusses the challenges facing many organizations that are considering or have migrated into a multi-vendor outsourced enterprise. It will detail the employing and leveraging of IT Service Management best practices to address these issues and the impact of operating in such an environment. Lastly, it will detail a proactive approach to facilitate this outsourcing enviornment.

Paul Craig Roberts

Economists are blind to the loss of US industries and occupations, because they believe these results reflect the beneficial workings of free trade. Whatever is being lost, they think, is being replaced by something as good or better. They are unable to identify what the replacement industries and occupations are, but they are certain they are out there somewhere. It does not occur to them … [ Read more ]

Business Process Outsourcing: A Costs Perspective

As offshoring of business processes becomes more widespread, companies need to make strategic choices on how best to offshore their business processes. This article suggests that transaction cost theory, which has been a powerful tool for analysing and understanding governance structure, can provide a useful framework to make these decisions.

C.K. Prahalad and M.S. Krishnan

The perspective on outsourcing must shift from a focus on cost arbitrage to one encompassing a global search for resources and methodologies for leveraging resources. That’s the new basis for innovation. We’ve just started scratching the surface of the business benefits of managing global resources; companies that focus on building a core competence in managing remote delivery-that is, managing for innovation, influencing without ownership, and … [ Read more ]