Introduction Evolution of Outsourcing Why Consider Outsourcing.pdfVIP

Outsourcing Table of Contents Introduction Evolution of Outsourcing Why Consider Outsourcing? Tactical Strategical Rationales Publishing Functions Analysis of Outsourcing Potential Preparing for Success Strategic Partnerships References Additional Reading About the Authors Outsourcing Planning for Strategic Partnerships A White Paper Prepared by The Sheridan Press A Restricted Distribution Document The Sheridan Press has commissioned this paper as a service to its customers and to the publishing community as a whole. Reproduction without the prior written approval of The Sheridan Press is prohibited. Publisher The Sheridan Press Contributing Editors Joan Weisman, President, The Sheridan Press Kevin E. Pirkey, Formerly Sales Manager, The Sheridan Press Authors Linda Beebe Barbara Meyers Copyright 1998, The Sheridan Press. Second Printing 1999, The Sheridan Press. Outsourcing--Planning for Strategic Partnerships Outsourcing . . .makes sense in an economy that no longer tolerates institutional bulk and demands agility and speed. – Elliot Torkko, 1996, p. 47 INTRODUTION Outsourcing, used previously to merely vend a variety of functions, has taken on a new imperative as a strategic management tool in recent years. Elliott and Torkko (1996, p. 47) define outsourcing as “a conscious business decision to move internal work to an external supplier.” In the past, outsourcing was viewed primarily as a cost-cutting measure. Now, however, managers are recognizing that smart outsourcing can result in an expansion of an organization’s ability to serve customers’ needs. Traditionally, the business literature has discussed outsourcing as a questions of commodities versus core function. A core function is “one of a limited number of functions that provides strategic advantage to the company. A core function is one that evolves slowly through collective le