Outsourcing Success : The Management Imperative

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Format: Hardcover
Pub. Date: 2005-12-03
Publisher(s): Palgrave Macmillan
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Summary

Outsourcing of business processes has been a major and growing trend. Many major corporations have oursourced overseas and the next wave will include many SMEs moving outsourcing operations. The changes and implications for business are substantial. Based on the latest research and data, with extensive case studies, diagrams, and interviews with major corporations, this book provides a comprehensive analysis and highlights the best practice and pitfalls to avoid.

Author Biography

Alpesh B. Patel is a Financial Times Columnist and Bloomberg Television's award winning Internet and Online Trading Specialist and co-presenter of @Bloomberg and Bloomberg Money. He is also a Visiting Fellow in Business at Corpus Christi College, Oxford University.

Table of Contents

List of figures and tables
x
About the authors xii
List of abbreviations
xiv
Acknowledgements xv
Introduction 1(6)
What business process outsourcing means
7(22)
Definition of BPO
7(1)
What's the outsourcing imperative and does it work?
8(4)
Outsourcing: an economic imperative
9(3)
The BPO route map
12(2)
Scope of outsourcing
14(2)
Horizontal services
14(2)
Vertical focused services
16(1)
Market size
16(3)
By region
16(1)
By function
17(2)
Drivers of BPO
19(4)
Cost reduction
19(1)
Focus on core operations
20(1)
Shared infrastructure
21(1)
Improvements in service level
21(1)
Access to large talent pool
21(1)
Process and product innovation
22(1)
Leveraging multiple time zone
22(1)
Changing customer needs
22(1)
Improving the bottom line
22(1)
Inhibitors
23(2)
Services quality
23(1)
Data security
24(1)
Staff redeployment issue
24(1)
Geopolitical risks
24(1)
Cultural differences
25(1)
Regulatory issues concerning offshoring
25(1)
The chapters ahead
25(4)
The BPO competitive landscape
29(8)
Various segments of the BPO market
29(5)
Classification by the identity of the players
29(4)
Classification by the nature of the activities performed by the players
33(1)
How the BPO market is evolving
34(3)
Sourcing strategy: an imperative in the connected economy
37(10)
Sourcing strategy: the next step after the business strategy
38(2)
What are the drivers of a partnership-based world?
40(4)
Increasing competitive thresholds due to globalization
41(1)
Industrialization of service value chain
42(2)
Various dimensions of strategic sourcing
44(3)
Business goals
45(1)
Internal capability
45(1)
External market capability
45(1)
Sourcing alternatives and models
46(1)
Sourcing governance
46(1)
How to develop a sourcing strategy
47(41)
First step: strategic gap analysis
47(2)
Second step: market and risk analysis
49(1)
Third step: market engagement alternatives
50(5)
Source internally
52(1)
Sourcing of capabilities or deliverables
52(1)
Sourcing of services or solutions
53(2)
Fourth step: market engagement models
55(8)
Proposed models for ``key activities''
56(1)
Proposed models for ``potential activities''
57(1)
Proposed models for ``fundamental activities''
58(2)
Proposed models for ``common activities''
60(3)
Fifth step: alternative scenario assessment
63(2)
Final step: sourcing governance
65(12)
Investment banks
77(11)
Why
77(11)
Guidelines for choosing outsourcing partners
88(23)
Partner choices framework
88(1)
Defining and refining goals
89(1)
Requirements assessment
89(1)
Location decision -- which country for what?
89(4)
Zeroing in on the partner
93(1)
In the long run
94(3)
Considerations - smoothing out the road blocks
97(1)
Key principles for win--win client relations
97(2)
Trust and confidence
98(1)
Responsiveness
98(1)
Innovation
99(1)
Best practices
99(9)
The view of a CTO
108(3)
What informs your decision to outsource?
108(1)
What do you look for in a target company?
109(1)
What kinds of activities have you not outsourced?
110(1)
Would you consider outsourcing more? What are your fears about it?
110(1)
The CFO perspective
111(7)
Profit and loss perspective
111(1)
Balance sheet perspective
112(1)
Operational metrics perspective
113(1)
Outsourcing the finance functions
114(1)
The virtues and threats of virtual
114(4)
Sourcing investment banking research and independent stock research
118(9)
Regulatory changes altered the competitive landscape
118(4)
Equity research functions: a strong case for outsourcing
122(1)
Roadblocks in the way of outsourcing/offshoring research functions
122(1)
How are firms using the services?
123(1)
What operational structures?
124(1)
Key pitfalls?
125(1)
Learning from others' mistakes
125(2)
The politics of outsourcing: trends, risks and strategies
127(15)
The politics of offshoring
127(1)
Dissecting the offshore debate
128(4)
The economic impact
129(1)
Quality
129(1)
Security and regulatory compliance
130(1)
Exploitation
131(1)
Business risks
132(1)
Assessing the impact so far
133(4)
Strategies
137(2)
Understand current and future stakeholder concerns
137(1)
Develop a plan for displacement management
137(1)
Make the case for offshoring
138(1)
Ensure the highest standards
138(1)
Align offshore plans with your CSR strategy
139(1)
Conclusion
139(3)
The future: outsourcing, innovation and your company's and country's future growth
142(33)
Prosperity in the modern economy
142(1)
Technological advances
143(11)
Social
143(3)
Science
146(5)
Innovation
151(3)
Globalization
154(5)
Growth
155(1)
Production
156(3)
Sectoral change -- services
159(5)
Productivity growth
159(2)
Technology
161(1)
Location
162(2)
The knowledge economy
164(3)
Changing skills
164(2)
The global labor market
166(1)
Key challenges for a modern economy -- the U.K.
167(5)
Appendix 1: location summaries
172(2)
Appendix 2: the political issues
174(1)
References 175(2)
Index 177

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