The Outsourcing Revolution
Book

The Outsourcing Revolution

Why It Makes Sense and How to Do It Right

Michael F. Corbett
Kaplan Publishing, 2004
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Editorial Rating

8

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Recommendation

Author Michael F. Corbett boldly stakes out the territory for his book on outsourcing. As a consultant and as an advocate of the offshore outsourcing movement, he states plainly that he wants this to become the essential guidebook for anyone considering outsourcing. Impressively, he takes great strides toward achieving just that. Clearly written and easily readable, his book refutes exaggerated concerns about job loss while providing nuts and bolts advice on getting started, picking a leader for your outsource project design team, negotiating contracts and maintaining your relationship with your outsourcing vendor. He makes a sound case for a strategic approach to outsourcing as a potential primary driver of the global economy. getAbstract finds that his comprehensive treatment of outsourcing issues makes this a must-read for anyone who seeks a better understanding of the outsourcing phenomenon, particularly executives thinking about dipping their toes into offshore waters.

Summary

Refuting Outsourcing Myths

The first myth about outsourcing is that it’s new. Actually, the term dates to the 1970s, when manufacturing companies seeking efficiency began hiring outside firms to manage less-than-essential processes. Outsourcing worked. Today many manufacturers outsource 70% to 80% of the content of their finished products. Large companies commonly outsource half of their IT operations. Organizations outsource their entire back office operations, including human resources, payroll and accounting.

Companies may soon be more outsourced than “in-sourced,” signifying a fundamental reorganization that will affect employees, managers, customers and executives. Consumer choices will increase, product costs will drop and workers’ roles will change. Today, outsourcing is at a crossroads. Companies no longer outsource only vertical business units. The new cross-functional approach follows a process horizontally throughout an organization – so-called business process outsourcing, or BPO.

Now more companies are seeking strategic advantages based on outsource alliances. While the relentless push to operate more efficiently remains the driving force behind ...

About the Author

Michael F. Corbett is president and CEO of Michael F. Corbett & Associates, Ltd., which provides outsourcing consulting, research and training. The firm produces The Outsourcing World Summit, an industry trade show. Corbett has testified before Congress, written for Fortune magazine and appeared as an analyst on several news programs.

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