Mr. Sandip Chhettri
Karki Brother
New Delhi, India
Free Member
Joined :07/01/2004
No of Topics Posted : 25
Reply/Comments : 19
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TOPIC : Outsourcing: It’s Not Just About Cost Cutting
Outsourcing used to be viewed as little more than a ho-hum tactic for reducing the costs of back-room functions such as payroll and IT. It didn't have much pizzazz and was never confused with a breakthrough management idea. But things started to change in the early '90s, as companies began outsourcing more strategically significant functions such as manufacturing and logistics, and even product design and other innovation-related activities. Suddenly outsourcing had morphed into a critical management tool.Then came the inevitable backlash. Outsourcing, so simple in theory, was turning out to be pretty tough to execute well. It wasn't living up to its promise companies were outsourcing the wrong things for the wrong reasons and going about it the wrong way. Even so, now's not the time to give outsourcing the bum's rush. The real play with outsourcing, in other words, is to use it as a tool to drive strategic value, transform businesses, and even fundamentally change industry dynamics.
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