Outsourcing: How to Make Vendors Work for Your Shareholders
Outsourcing promises tantalizing benefits: cost savings, improved responsibilities & fewer distractions. Unfortunately, those claims don't hold up under the harsh test of reality. The ugly truth is that outsourcing is often the last resort for executives frustrated with staff departments. But does it make sense to get rid of management headaches by eliminating an entire department? This book offers practical guidelines that answer the fundamental questions: When is outsourcing appropriate & when is it just throwing too much money at the problem?
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activity-based costing add value additional decision criteria advantages benefits budget-by-deliverables build business units Canadian Wheat Board competence competitive competitors Coordinator customer focus deliverables demand economies of scale ensure entire function example expensive extended staffing extended-staffing strategy external vendors firm firm's fixed costs funding Furthermore headcount hire improve in-sourcing insiders internal clients internal economy internal entrepreneurs internal provider internal service provider invest lines of business Long-term contract employees Machine-based Service Bureau manage vendors market share metrics negotiating offer ongoing organization's products Organizational Effectiveness outsourcing challenge outsourcing decision outsourcing vendors partnerships People-based Service Bureaus performance appraisals proactively product line product vendors products and services profits provider is expected quality of service Real cost/benefit require response save money sell shareholders skills solutions standards and policies strategic value subsidies and venture suppliers technologies utilize vendors vendors and contractors venture capital vested interests