When outsourcing goes from wrong to right: The importance of the neutral, experienced party

Abstract

Purpose

Reviews a case study of how an outside consultant turned an expensive stand off between two firms into a success.

Design/methodology/approach

Case study.

Findings

Big change in any company is always difficult. It gets more difficult if there is also an outside organization involved. And it gets really difficult if on top of that employees are expecting downsizing and redundancy. Emotions are running high and needs can appear to run at crossed purposes. Yet in the current economic climate, this situation is increasingly common. To keep operating costs down, many chief executives are making decisions that involve outsourcing the work of entire departments, taking advantage of a more specialized and most likely a cheaper workforce overseas. Unsurprisingly, such decisions invite multiple problems.

Practical implications

Advice on dealing with outsourcing change.

Originality/value

Offers advice on handling troubled initiatives from the perspective of a strategic consultant.

Citation

(2010), "When outsourcing goes from wrong to right: The importance of the neutral, experienced party", Strategic Direction, Vol. 26 No. 7, pp. 26-27. https://doi.org/10.1108/02580541011049000