The Outsourcing Revolution – Why It Makes Sense and How to Do It

Citation

Steinbuch, P.I. (2007), "The Outsourcing Revolution – Why It Makes Sense and How to Do It", Leadership & Organization Development Journal, Vol. 28 No. 4, pp. 379-380. https://doi.org/10.1108/01437730710752256

The Outsourcing Revolution is organized around three key areas:

1. 1.

   Outsourcing and the global economy;

2. 2.

   The disciplines of outsourcing; and

3. 3.

   The outsourcing enterprise.

Michael Corbett does an excellent job of bridging theory and practice. The author allays the perceived fears from outsourcing by presenting a cogent analysis of the benefits of outsourcing. In particular, Corbett asserts that outsourcing is a logical and sound management practice, which makes companies more productive and competitive. He counters the public debate by providing a factual analysis highlighting both the proliferation of outsourcing and its role as a key management tool in providing returns to shareholders. The Outsourcing Revolution is not simply a how‐to book. Instead the author provides a framework, based on the incorporation of actual outsourcing initiatives, for companies to reengineer their operations toward achieving an adaptable and innovative organizational structure able to compete in the ever‐growing global economy. Particularly noteworthy, is the author's organization of the material – beginning with high level overviews in the early chapters and then progressing to detailed discussions concerning the actual process of outsourcing. He includes an important chapter on the impact on employees and overcoming public perceptions. It seems as if Corbett anticipates readers' questions and, with an informative and lucid writing style, provides guidance, supported by actual case studies, on preparing the initial business case, pricing, contracting and ultimately managing an interdependent organization. By doing so, Corbett has written a book applicable to a variety of readers. Although aimed primarily towards the executive, this book is a terrific read for anyone who is interested in current business trends and global competitiveness. The inclusion of a wide variety of case studies, both specific to chapter topics and as general examples is an excellent way of showing the audience the variety of applications across diverse industries. The clear presentation and detail provides a manageable framework for those unfamiliar with the subject. Although the book deals with the complexities of business process engineering, it does so without being obscure and vague. Corbett has produced a book which can be used as a text, reference source, general reading for those who want to stay current and a how‐to guide all at the same time. The author has the ability to intrigue the reader by balancing theory and real‐world examples. For what is generally considered a complex subject area, the author has done an excellent job of addressing the concepts and complexities in a manageable and reader friendly manner.

The book is organized around 14 chapters. The book begins with a discussion of the history of outsourcing, most notably that it has been practiced in various forms for quite some time. Chapter 2 examines outsourcing beyond its obvious role in cost cutting and instead as a tool for business process improvement. In this chapter the author moves from simple transaction based outsourcing toward a framework that focuses on improving customer service and ultimately the creation of new revenue sources and business growth. Off‐shoring is addressed in Chapter 3. Despite the controversy concerning job loss, the author shows how the movement from manufacturing to information‐based work has improved customer service and response in a global economy demanding round the clock response. Chapters 4 presents sourcing as a strategy for an organization and backs this up with its role in enhancing the value model and its effectiveness when using a zero based budgeting approach. Chapters 5 through 6 explain approaches to developing a global strategy and how to optimize and prioritize opportunities.

Chapter 7 drills down on implementation issues, specifically creating and leading successful teams. The case study of Bell Canada provides a management tool kit as a guide for implementation. Chapter 8 provides an actual quick reference guide and moves from the more general to specific steps needed to successfully outsource. Chapter 9 looks directly at costs, both budgeted and full, to develop a sound forecast of outsourcing impacts. Chapters 10 through 12 drill down on contracting, pricing and negotiation, internal employee management and the actual migration of company functions. The last section of the book “The Outsourced Enterprise” examines the future role of outsourcing from the perspective of employees, executives and the enterprise as a whole. The final chapter provides case studies of actual businesses and the results of their outsourcing initiatives.

The Outsourcing Revolution is comprehensive, current and well balanced in its approach bridging theory with actual examples and guidelines. Corbett does an excellent job of presenting a very broad subject in a manageable and practical manner. He uses the successes and demands of the global economy to address misconceptions and the charged debate concerning outsourcing. Corbett is particularly effective and thorough in presenting a framework with well‐identified steps for a successful transition to business process reengineering focusing on innovative uses of outsourcing. The road map provided in this book is thorough and essential for any organization using or considering outsourcing. I recommend this book for executives, employees, students and the general public interested in business trends and the interdependencies required by the global economy.