Going Beyond Commodity Outsourcing

Millman, Gregory J.
September 2003
Financial Executive;Sep2003, Vol. 19 Issue 6, p55
Academic Journal
This article presents an examination of how outsourcing has gone from a practice used mainly to cut costs in the area of information technology and has moved to a more transformative process that is part of a company's strategic plan. The author notes that the process has grown much more complex than simply finding the lowest cost labor and it now involves trying to find ways to differentiate and improve how a company operates. The author notes that outsourcing at this level offers much more than cost reduction. The author notes that outsourcing began as a process of moving non-core activities outside of the company so it could focus on what it does best. This idea still applies; however, the author suggests that the future of outsourcing is going to be focused on transformation.


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