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Outsourcing: A Guide to ... Selecting the Correct Business Unit ... Negotiating the Contract ... Maintaining Control of the Process, 2nd Edition

ISBN: 978-0-471-67626-3
400 pages
February 2006
Outsourcing: A Guide to ... Selecting the Correct Business Unit ... Negotiating the Contract ... Maintaining Control of the Process, 2nd Edition (0471676268) cover image
"As companies in growing numbers look to outsource functions not related to their core competencies, Bragg's work provides an excellent road map. Demonstrating a firm grasp of the topic, he intelligently walks the reader through the maze, analyzing all aspects of the process (including whether the function should or should not be outsourced). This is a must-read for both novices and veterans alike."
--Mary S. Schaeffer Editorial Director and Publisher Accounts Payable Now & Tomorrow

"Steve Bragg's Outsourcing gives business decision-makers the insights needed to make the case for or against outsourcing. The first half provides a thorough discussion of all aspects, including evaluating risks and rewards, selecting, contracting, and terminating. The second half provides in-depth analysis of ten different types of outsourcing services, including janitorial, customer service, and accounting. This book provides practical advice that will benefit everyone regardless of the extent of their prior experience."
--Dr. Will Yancey, PHD, CPA Independent Consultant

"Once again, Steve Bragg has compiled a comprehensive, well-written book that will yield an excellent return on time invested by readers. This is a must-have guide in outsourcing for any manager, whether newly exposed or an expert. I came away with some great ideas from the book!"
--James A. Bologa Executive Vice President and CFO Daticon Inc.

"Use of carefully considered outsourcing can be a critical component of any corporate strategy. In Outsourcing, Steve Bragg has given an excellent overview of why and when outsourcing should be considered, some precautionary thoughts, and specifics of how to successfully implement and manage any outsourced functions. He has created an excellent guide to the use of outsourcing as a means to enhance corporate success in today's challenging business climate."
--Richard V. Souders President and CEO Premier Data Services
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Preface.

About the Author.

1 Strategy of Outsourcing.

Overview of Outsourcing.

Outsourcing Risks.

Initiating Outsourcing.

Companies That Take Over Outsourced Functions.

Summary.

2 Outsourcing a Function.

How to Find an Outsourcing Supplier.

Evaluating Potential Outsourcing Suppliers.

Cost of the Outsourcing Relationship.

Personnel Issues.

Transition Issues.

Relations with the Outsourcing Partner.

Measuring the Service Level of Each Outsourced Function.

Summary.

3 Contractual Issues.

Constructing the Contract.

Contract Clauses.

Function-Specific Contractual Issues.

Summary.

4 Managing the Supplier.

Functional Coordinator.

Legal Management.

Outsourcing Advisory Committee.

Outsourcing Sponsor.

Management of Specific Functional Areas.

Management of International Suppliers.

Summary.

5 Terminating the Outsourcing Arrangement.

Termination Scenarios.

Termination Avoidance.

General Termination Issues.

Function-Specific Termination Issues.

Summary.

6 Accounting for the Outsourced Company.

Impact on Data Collection.

Impact on Financial Reporting.

Impact on Controls.

Impact on Performance Measurement.

Impact on Transactions.

Summary.

7 Outsourcing the Accounting Function.

Advantages and Disadvantages.

Transition Issues.

Creating Control Points.

Measuring the Outsourced Function.

Potential Customer Service Issues.

Summary.

8 Outsourcing Computer Services.

Advantages and Disadvantages.

Transition Issues.

Creating Control Points.

Measuring the Outsourced Function.

Potential Customer Service Issues.

Summary.

9 Outsourcing the Customer Service Function.

Advantages and Disadvantages.

Contract-Specific Issues.

Transition Issues.

Creating Control Points.

Measuring the Outsourced Function.

Potential Customer Service Issues.

Summary.

10 Outsourcing the Engineering Function.

Advantages and Disadvantages.

Transition Issues.

Creating Control Points.

Measuring the Outsourced Function.

Potential Customer Service Issues.

Summary.

11 Outsourcing the Human Resources Function.

Advantages and Disadvantages.

Transition Issues.

Creating Control Points.

Measuring the Outsourced Function.

Potential Customer Service Issues.

Summary.

12 Outsourcing the Logistics Function.

Advantages and Disadvantages.

Transition Issues.

Creating Control Points.

Measuring the Outsourced Function.

Potential Customer Service Issues.

Summary.

13 Outsourcing the Maintenance and Janitorial Functions.

Advantages and Disadvantages.

Transition Issues.

Creating Control Points.

Measuring the Outsourced Function.

Summary.

14 Outsourcing the Manufacturing Function.

Advantages and Disadvantages.

Transition Issues.

Creating Control Points.

Measuring the Outsourced Function.

Potential Customer Service Issues.

Summary.

15 Outsourcing the Sales and Marketing Functions.

Advantages and Disadvantages.

Transition Issues.

Creating Control Points.

Measuring the Outsourced Function.

Potential Customer Service Issues.

Summary.

16 Outsourcing the Administration Function.

Advantages and Disadvantages.

Transition Issues.

Creating Control Points.

Measuring the Outsourced Function.

Potential Customer Service Issues.

Summary.

Appendix Summary of Performance Measurements.

Accounting.

Computer Services.

Customer Service.

Engineering.

Human Resources.

Logistics.

Maintenance and Janitorial.

Manufacturing.

Sales and Marketing.

Administration.

Index.

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Steven M. Bragg, CPA, CMA, CIA, CCP (Certified Computing Professional), CPM (Certified Purchasing Manager), and CPIM (Certified Production and Inventory Manager). He is the Controller of Teague Equipment, a multilocation company that assembles trucks for the utility and construction industries (revenues of $16 million). He is responsible for all accounting, finance, internal audit, and IT functions.
Prior to joining Teague Equipment, he was the CFO of Isolation Technologies, a company that manufactures customized isolation chambers used to produce drugs in a cleanroom environment. Before that, Bragg was the Controller of Carts of Colorado, a subsidiary of the Pepsi Cola Company. His responsibilities included accounting, purchasing, production control, IT, and warehousing functions. Other positions that Bragg has held include Manager at Ernst & Young, Senior Cost Accountant at Jolly Rancher Corp., Assistant Controllers at Spinnaker Software Corp., and Staff Auditor at Deloitte & Touche.
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