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Outsourcing -- Insourcing: Can vendors make money from the new relationship opportunities?

Outsourcing -- Insourcing: Can vendors make money from the new relationship opportunities?

Per V. Jenster, Henrik Stener Pedersen, Patricia Plackett, David Hussey

ISBN: 978-0-470-01480-6

May 2005

202 pages



Outsourcing became fashionable in the late 1980s, came of age in the 1990s, and is now a normal part of corporate life. Written by well-known and respected business authors and incorporating new research from Copenhagen Business School, this book covers the newest elements of outsourcing today and discusses how strategic alliances should be established between the buyer and supplier. Topics explored throughout include the scope, scale and importance of what is outsourced; the pricing and risk sharing involved; and changes to organizations which lead them to seek more outsourcing.


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.



“Outsourcing Insourcing comes at a critical time…” Supply Management, 12th May 05

“…the authors not only help readers explore the digital frontier but also empower them to identify, understand and assess these risks.” (Gulf Business, July 2005)