De-Outsourcing LO13996

Mike Jay (
Thu, 19 Jun 97 03:49:07 UT

Replying to LO13991 --

pmarais <> said:

>I am exited to see that there are people agreeing and even quoting that
>the de-outsourcing trend is already coming back.


I don't think in any way that outsourcing is on the way out. This is an
excerpt from a free e-mail column I write and I hope there's enough info
here to substantiate my hypothesis.



Most of us are familiar with outsourcing, that process where we hire other
people and organizations to do work on our behalf. However most of the
time, I'm not sure we really understand that by outsourcing those things
we don't do well, we make the things we are great at, better!

There are a number of reasons why we would want to outsource our
processes. Some of them are:

Focusing the company's strengths
Gaining access to world class competency
Accelerating change efforts
Spreading or limiting risk
Creating resource leverage
Making capital go farther
Using cash to grow prime business
Reducing or controlling costs
Buying expertise you don't have
Management limitations
embrace complexity

In 1996, over a $100 billion was spent on outsourcing with information
technology continuing to be the leader at 40% of the total. Dun &
Bradstreet has even started an "outsourcing index" to track the degree to
which companies have begun to outsource.

It is critical in business today that we evaluate our resources in terms
of value for dollars spent. Outsourcing provides a means with which to
benchmark internal processes, leverage the finite resources we do have,
focus our attention in those core areas of capability where we can be
world class and create partnerships and alliances with other world class
suppliers in serving our customers as well as dealing with the increasing
levels of complexity taking place in the market ecosystem.

Each decision made in our small and large organizations should take into
consideration, the question: Should we outsource this process and
concentrate on building core competencies that are important to our




"Mike Jay" <>

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