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Vested Outsourcing
Book

Vested Outsourcing

Five Rules That Will Transform Outsourcing

Kate Vitasek, Mike Ledyard and Karl Manrodt
Palgrave Macmillan, 2010

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Editorial Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

Outsourcing is a fact of life for most businesses, generally for services like facilities management, market research or trouble-shooting over the phone for customers. But traditional outsourcing arrangements don’t always deliver all the value they could for either the client firm or the outsource provider. Supply chain management consultant Kate Vitasek (writing with Mike Ledyard and Karl Manrodt) calls for a new approach to outsourcing that shifts the relationship from adversarial to collaborative, and thus delivers tangible benefits to both parties. The US Air Force, “which spends more than 50% of its entire procurement budget on procured services,” sponsored this study under the auspices of the University of Tennessee’s Center for Executive Education. This report provides a template for companies and providers searching for better outsourcing results and for more lucrative savings or profits. getAbstract recommends this thorough, illuminating guide to new and veteran outsourcing clients and providers.

Take-Aways

  • “Vested outsourcing” is a new partnership-based model wherein both the client company and the outsource provider benefit from being collaborative.
  • Typical cost-driven outsourcing creates an adversarial dynamic where the supplier has no incentive to improve service or cut costs for the client.
  • Ten defects can plague traditional outsourcing deals, from clients or suppliers who sacrifice quality to combative parties who view their relationship as a zero-sum game.

About the Authors

Kate Vitasek, founder of Supply Chain Visions, teaches at the University of Tennessee’s Center for Executive Education. Mike Ledyard is the co-author of Keeping Score: Measuring the Business Value of Logistics in the Supply Chain. Karl Manrodt teaches at Georgia Southern University.

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