Outsourcing -- Insourcing: Can Vendors Make Money from the New Relationship Opportunities / Edition 1

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Outsourcing became fashionable in the 1980s, came of age in the 1990s and is now part of everyday corporate life. We are all familiar with the principles that underlie it – a focus on core competencies, cost analysis, and total quality management. But these relate to the buying organisation. And there are at least two organisations in any outsourcing decision.

Despite increased literature on outsourcing, there is little recognition of the supplier’s role in developing and implementing an outsourcing arrangement. What, for a buying organisation, is a strategic decision involving benefits, risks and change, is for the supplier a strategic opportunity, with a related but different pattern of benefits, risks and organisational implications.

Drawing on research from Copenhagen Business School strengthened by a balance of case studies and contributions from participating companies, Outsourcing-Insourcing offers insights on strategy and implementation for buyers and suppliers. Both will discover a wealth of new outsourcing opportunities, along with practical advice for leveraging them to maximise profits.

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Product Details

  • ISBN-13: 9780470844908
  • Publisher: Wiley
  • Publication date: 4/8/2005
  • Edition description: New Edition
  • Edition number: 1
  • Pages: 202
  • Product dimensions: 6.42 (w) x 9.30 (h) x 0.85 (d)

Meet the Author

Per V. Jenster is a Professor at Copenhagen Business School, where he has held the post of Associate Dean with responsibilities for various MBA programs. He was formerly a professor of marketing at IMD, Lausanne, Switzerland. He completed his doctorate in Strategic Management at the University of Pittsburgh and was later a faculty member at the University of Virginia. His industry experience includes extensive consulting in the areas of strategic management, marketing planning, competitive analysis and cost evaluation studies, and his research is widely published in books, articles and case studies.

Henrik Stener Pedersen manages Oxford Research, a Copenhagen-based international research company. He obtained his PhD from Copenhagen Business School, focusing on outsourcing and quality management, and has conducted studies and analyses in the fields of globalisation, HR policy, competence development and labour market issues.

Patricia Plackett holds a PhD in anthropology and is currently completing a PhD in industrial economics and strategy at Copenhagen Business School, where her research focuses on radical innovations. She has lectured in various MBA and other programmes. Her career also includes management positions in Canada and New Zealand.

David Hussey was for many years a well-known authority on strategic management, and wrote or edited more than thirty books. He spent fourteen years as Managing Director of Harbridge Consulting Group and was experienced as both a practitioner and a consultant to major global companies across many sectors and industries. He was a founder of the Strategic Management Society, Founding Editor of the Journal of Strategic Change, a director of the Japan Strategic Management Society, and a visiting professor at Nottingham Business School. For his contributions to the effective application of strategic management practices he was awarded the Japan Strategic Management Society Ansoff Award in 1999. David Hussey died in January 2003.

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Table of Contents



1. Understanding the opportunities.


What is outsourcing?

The origins of outsourcing.

Trends and pressures.

Initial concepts.

Outsourcing today.

Traditional activities.

Peripheral activities.

Critical activities and processes.

Strategic and problem-solving activities.


2. Moving to supplying total solutions.


Management issues for outsourced activities.

Traditional activities.

Peripheral activities.

Critical activities and processes.

Case Study: The 1999 crisis at the UK Passport Agency.

Strategic and problem-solving activities.

Case study: The European Chewing Gum Company.


3. Retooling marketing and the sales force.


The search for a better way to trap mice.

Market segmentation. variables

Segmentation approaches.

Criteria for initial screening.

Evaluating potential. segments

Defining the market.

Timing, niche markets and global considerations.

Sales force management in a changed environment.

Sales force development for supplying total solutions.

Building sales force. capabilities


4. Managing buyer/supplier relationships .


The challenges for suppliers.

Case Study: Timex Dundee.

Case Study: IBM Denmark.

Supplier Challenge 1 - The need for additional competencies.

Supplier Challenge 2 - Managing the entry phase.

Supplier Challenge 3 - Running the contract.

Case Study: Driver and Vehicle Licensing Agency, UK.

The challenges for buyers.

Buyer Challenge 1 - The pre-bid phase.

Buyer Challenge 2 - Identifying the key suppliers.

Buyer Challenge 3 - Awarding the contract .

Buyer Challenge 4 - Running the contract.


5. Pricing solutions and managing risks.


The value of strategic pricing.

Fundamental pricing concepts.

Pricing the bundle of goods and services.

Pricing when distributors are involved.

Price administration.

Understanding the risks to suppliers and buyers.

Mechanisms for bridging uncertainties.


6. "Transitioning" human resources.


Setting the scene.

The fundamentals.

Strategies for employee transfer.

Pitfalls and critical factors.


7. Structuring "next generation" IT solutions.


The changing role of IT departments.

The real problem with IT investments.

What ROI?

IT: Over-administrated and under-managed.

The IT paradox.

The "next generation" approach to IT .

Summary .

8. Achieving quality in outsourcing.


Understanding the role of quality management.

Defining quality for integrated products and services.

Challenges: Leadership and strategy.

Challenges: Processes.

Challenges: People

Factors conditioning quality management.


9. Getting a good slice of a bigger pie.


The outsourcing pie.

How good are we at making larger pies?

How sellers can make the pie larger.

How buyers can make the pie larger .

In the final analysis.

The Claimpower story.



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