The context for make-or-buy decisions has become more dynamic, as manufacturers face dramatic swings in demand and the relative costs of sourcing locations. To maximize their resilience and value creation, leading manufacturers use a scenario-based approach to assess the implications of a broad array of sourcing decisions simultaneously.
Content: Article | Authors: Claudio Knizek, Daniel Küpper, Daniel Spindelndreier, Michael Zinser | Source: Boston Consulting Group (BCG) | Subjects: Management, Operations, Outsourcing / BPO, Strategy
You have a product idea and you want a manufacturer to produce it for you. But you’re on a limited budget so sourcing in China seems like a good idea. You know that China has many low-cost manufacturers. But how do you find the right one?
Content: Article | Author: Rieva Lesonsky | Source: OPEN Forum (American Express) | Subjects: International – China, Operations, Outsourcing / BPO
While outsourcing is a powerful tool to cut costs, improve performance, and refocus on the core business, outsourcing initiatives often fall short of management’s expectations. Through a survey of nearly a hundred outsourcing efforts in Europe and the United States, I found that one or more of seven “deadly sins” underlie most failed outsourcing efforts:
1. Outsourcing activities that should not be outsourced
2. Selecting … [ Read more ]
Content: Article | Author: Jérôme Barthélemy | Source: Academy of Management | Subject: Outsourcing / BPO
When you decided to start a business, it probably wasn’t the fun of keeping up with the latest employment regulations, tax issues, and OSHA requirements that lit your fire. Nevertheless, if you have even a single employee, you’re stuck with all that and more. You’re not alone and fortunately, where there is opportunity there are generally entrepreneurs with a solution. Enter the world of professional … [ Read more ]
Content: Article | Author: Kate Lister | Source: OPEN Forum (American Express) | Subjects: Human Resources, Outsourcing / BPO, Small Business
Buffeted by years of offshoring, formidable Asian competitors and a global economic downturn, some companies are finding ways to make manufacturing in the U.S. a competitive advantage.
Content: Article | Author: Dale Buss | Source: Chief Executive | Subjects: Management, Operations, Outsourcing / BPO, Strategy
Everyone’s talking about “talent management” today as a way to boost the performance of the human resources (HR) organization. But what are the elements of a talent management strategy, leveraging advanced HR outsourcing solutions, that can actually drive high performance for an entire company?
This article offers an innovative and practical approach to talent management—planning and executing an integrated set of management processes that generate greater … [ Read more ]
Content: Article | Authors: Craig Mindrum, Ph.D., Sian Beacham | Sources: Accenture, HRO Today | Subjects: Human Resources, Outsourcing / BPO
For American companies, sending work overseas has been a hit or miss proposition. The winners cite the cost savings and expertise garnered abroad. However, for the losers, offshore projects gone awry can result in lost intellectual property and/or disgruntled customers. With the rate of offshoring on the rise, supply chain experts at Emory University’s Goizueta Business School and other Atlanta-area outsourcing experts say for companies … [ Read more ]
Content: Article | Source: Knowledge@Emory | Subject: Outsourcing / BPO
Low-cost-country outsourcing has become much more sophisticated, but that doesn’t mean outsourcing is the answer for every company. Not all products – and not all portions of a product’s supply chain-should be outsourced. Lasting competitive advantage requires a nuanced approach. You must consider internal costs and organizational processes in deciding what you send, where you send it, and how you operate. Even when outsourcing is … [ Read more ]
Content: Article | Authors: Hubert Hsu, Jim Hemerling, Jonathan Cowan, Katrina Helmkamp, Michael Zinser | Source: Boston Consulting Group (BCG) | Subject: Outsourcing / BPO
Companies continue to aggressively pursue offshoring, even in the face of negative onshore media attention. Why? Because offshoring offers potentially great rewards: It helps companies compete in a global age, creates value for their shareholders, and improves their operational performance.
Content: Article | Source: A.T. Kearney | Subjects: Best Practices, Outsourcing / BPO
Even as offshore outsourcing has matured, best practices have been few. Now two top academics reveal the principles that should guide CIOs.
Content: Article | Authors: Joseph W. Rottman, Mary C. Lacity, Stephanie Overby | Source: CIO Magazine | Subject: Outsourcing / BPO
Economists, including Paul Samuelson and Jagdish Bhagwati, vigorously debate whether offshore outsourcing in high-tech industries helps or harms the U.S. economy. The main issue is whether insourcing countries, such as China or India, will catch up with and eventually outcompete the U.S. Moreover, the dearth of off shore outsourcing data has hindered the study of the impact of offshore outsourcing. To explore the impact of … [ Read more ]
Content: Article | Author: Wendy Chuen-Yueh Li | Source: UCLA | Subjects: Innovation, Outsourcing / BPO
Forget everything you think you know about outsourcing. The promised results are not materializing and while companies continue to ink deals, they’re not the megadeals of the past. Today’s contracts tend to be smaller and shorter. As outsourcing deals change so must a company’s approach. It’s time to think of outsourcing as you do a product portfolio-with different strategies for different deals.
Content: Article | Source: A.T. Kearney | Subject: Outsourcing / BPO
The Index evaluates 40 countries as potential locations for the most common remote services, including IT services and support, contact centers, back-office support. Each country’s score is comprised of a weighted combination of relative scores on 40 individual metrics, which are grouped into three categories: financial attractiveness, people skills and availability, and business environment.
Content: Article | Source: A.T. Kearney | Subjects: International, Outsourcing / BPO
Knowledge transfer is one of the first tasks of transitioning to an outsourced model, but it’s sometimes overlooked or under-planned, resulting in a shaky start to the relationship. Here’s how to do it right.
Content: Article | Authors: AJ Warner, Neil Brown | Source: CIO Magazine | Subjects: Knowledge Management, Outsourcing / BPO
Booz Allen Hamilton research reveals that a third of those who outsource fail to achieve the expected benefits. Is that outcome inevitable? Absolutely not, if companies pay close attention to outsourcing governance.
Content: Article | Source: Strategy& | Subject: Outsourcing / BPO
International logistics partnerships are a key class of strategic alliance, but until now little has been known about their performance. The paper “Measuring the Performance of Intenational Logistics Outsourcing Partnerships: A Dyadic Perspective Analysis” introduces, for the first time, a reliable methodology to measure the performance of a partnership between a logistics provider and its customer. Using data from 75 top European logistics companies and … [ Read more ]
Content: Article | Authors: África Ariño, Alejandro Lago, Joan Jané | Source: IESE Insight | Subjects: Operations, Outsourcing / BPO
A recent Accenture global survey of more than 500 companies, combined with 32 in-depth interviews with experienced outsourcing executives, demonstrates a new maturity in the way businesses and governments are working the outsourcing lifecycle, and reveals hard-won expertise in getting the most from outsourcing partnerships. These executives embrace outsourcing as a mainstream management tool for improving performance and increasing productivity. Far from a one-shot quick … [ Read more ]
Content: Article | Authors: Adam Johnson, Philip A. George | Source: Outlook Journal (Accenture) | Subjects: Management, Outsourcing / BPO
Companies that send their back-office jobs offshore often cut their labor costs by as much as half. But new research by the McKinsey Global Institute finds that these companies risk leaving billions of dollars in savings behind if they merely replicate what they do at home in countries where labor is cheap. The savviest operators redesign business processes to exploit automation and take full advantage … [ Read more ]
Content: Article | Authors: Diana Farrell, Jaana K. Remes, Vivek Agrawal | Source: McKinsey Quarterly | Subject: Outsourcing / BPO
As more companies move to outsource services currently performed in-house, they’ll likely encounter a slew of risks, some of which become clear only when something goes badly wrong. Managers will have to mitigate these risks in order to reap the substantial benefits that outsourcing provides.
Content: Article | Authors: Andrew Chadwick-Jones, David Bovet, Olivier Fainsilber | Source: Mercer Management Journal | Subjects: Management, Outsourcing / BPO
Many companies today outsource the wrong processes to the wrong vendors in deals with the wrong structure. The resulting chaos and rancor that has come to typify much of the IT-outsourcing market is a clear indication of the need for a simplifying but rigorous framework that provides practical guidance.
Making the right outsourcing decisions requires answering three questions:
* What to outsource
… [ Read more ]
Content: Article | Author: Michael E. Raynor | Source: Deloitte | Subjects: IT / Technology / E-Business, Outsourcing / BPO