Welcome,
James Brian Quinn, best selling author and resident Dartmouth College business visionary, calls Outsourcing "one of the greatest organizational and industry structure shifts of the century".
Harvard Business Review similarly ranks outsourcing on its list of top business ideas of the past 100 years.
Dun & Bradstreet estimates outsourcing to be US $ 1 trillion global market.
The Outsourcing Research Council, US, reports that the typical executive will soon be spending one-third of his or her budget on outsourcing.
The worldwide
outsourcing marketplace is now estimated at US $350 billion, according to
Cutting Edge Research, and more than 90 percent of US companies outsource
at least one activity. Companies are looking to outsiders to run virtually
all operations that are not core to delivering their company's main
products or services.The Global Outsourcing objectives:
In some cases, outsourcing means essentially selling the existing assets of a company to an outside service provider and then working with that provider's experts to improve those assets. The result: better use of capital and potential gains of quality, productivity, and throughput.
Why Companies Outsource: A Chart
In other cases, outsourcing is a way to take an existing fixed cost structure and turn it into a variable one in which expenses can move up or down as the business climate dictates. Today, having a more variable cost structure has become a real priority for most executives. Creating that variability is now one of the top three reasons companies outsource. (See chart).
Cost reduction continues to matter and to be a key goal of outsourcing. Business must constantly increase both their efficiency and quality and therein drive greater profits to their bottom line.
But almost as important as reducing costs is making sure that business stays focused on its core. Modern businesses are simply too complex, and attempting to excel on your own at every aspect of your operation is just not possible.
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