Global Outsourcing Strategies: An International Reference on Effective Outsourcing Relationships

Citation

Best, J. (2007), "Global Outsourcing Strategies: An International Reference on Effective Outsourcing Relationships", The Electronic Library, Vol. 25 No. 4, pp. 479-480. https://doi.org/10.1108/02640470710779899

This book is a collection of contributions from 22 highly qualified writers, predominantly academic, but including some practitioners in large international firms. The book is aimed at both academics and senior business executives, and provides both theoretical and practical viewpoints. The contributors present examples of outsourcing with advice on lessons learned from the UK, the USA, New Zealand, Australia, and a range of European countries. Contributions explore risks, critical requirements, legal aspects, service level agreements, building internal and external relationships, and impact on organisational structure. They concentrate on manufacturing rather than service industries, and on the private rather than the public sector.

Part one looks at the evolution and current state of global outsourcing. It notes that outsourcing has always been part of business, as no firm can produce everything it needs to produce its good or service. However outsourcing reverses the recent trend towards vertical supply chain integration. In outsourcing, companies seek cost reduction, quality improvement, or reduction in time to the market.

Part two looks at the impact of outsourcing on organisational structures and relationships. There is some practical advice on restructuring, and how to transfer learning quickly. Benson warns that there may be unanticipated consequences on morale, commitment and motivation of the remaining workforce, which negate the short‐term competitive advantage created by outsourcing.

Part three explores the perceived long term and global effects of outsourcing, mainly in economic terms, and at an academic level. Pulignano discusses the effect of outsourcing on trade unions and offers some high‐level strategic advice.

Part four deals with legal, ethical and risk issues. Relationship building with the firm to which the work is outsourced, is essential. Well‐written service level agreements and contracts are critical to maximize partnership behaviour and minimise opportunistic advantage‐seeking.

Part five offers three case studies, one from New Zealand (Kinleith Mill), one from Australia (Sir Charles Gairdner Hospital), and one on a small UK company providing market intelligence to construction companies. All draw useful lessons from the situations described. The case study by Hewitt and Boardman, on outsourcing hospital orderly services, is the only chapter in the book that focuses on outsourcing in the public sector. Although it discusses events in 1995, it provides interesting insights into the pros and cons of contracting out services from a government agency.

As a library manager, I found sections of the book useful for the improvement of decision‐making on what, how and when to outsource, and when this may not be the best option.

This book is a thorough exploration of the topic of private sector outsourcing and the current state of the art. It would be valuable in the library of a university or large business.