Strategic Outsourcing: A Structured Approach to Outsourcing Decisions and Initiatives
Organizations are turning to external suppliers for everything from payroll processing to facilities management. The goal is better quality at lower costs, but too often the results are disappointing to dismal - simply because many buyers lack a clear outsourcing methodology. Using the concepts in this book, managers responsible for outsourcing will learn to avoid typical pitfalls and ensure success. Readers learn how to: * determine core competencies that should be kept in-house rather than outsourced * align outsourcing with overall corporate strategy * use outsourcing to support transformation strategies such as restructuring and TQM * evaluate, compare, and select vendors * develop targeted RFPs (requests for proposals), negotiate win-win contracts, monitor how vendors perform, and evaluate financial savings * handle ""recompetition"" as contracts end - an especially hot topic" "
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Project Management and Champions
Exploring Strategic Implications
Determining Core Competencies
Aligning Outsourcing With Strategy
Developing the Request for Proposal
Comparing and Evaluating Proposals
The Transition Process
account manager activities activity-based cost adjustments advisers agreement areas Arthur Andersen assets benchmarking benefits capital cash Chapter contract core competencies costs customers dead bands decision rights deliver discussions economic value added effective employees equipment evaluate example existing provider expertise factors of production focused function future human resources identify improve increase innovative insourced internal unit investments involved issues long-term measures meet ment Morrison Knudsen needs negotiation nization noncore operating orga organization organization's organizational Outsourced Outsourced outsourcing initiative parties percent performance personnel principled negotiation problems project champion project leader project team proposal provider's qualifications questions reasons to outsource recompetition reduce reengineering relationship manager relationship team responsibility risks scope senior management share significant skills sourcing specific strategic team members term sheet termination tion tool transferred transition understand underwriting unit's