Outsourcing, Insourcing and IT for Enterprise

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ISBN: 9781403903457 | 140390345X
Cover: Hardcover
Copyright: 2/8/2003

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Many firms are now developing policies for outsourcing IT and other basic functions, this book analyzes this issue from the perspective of both the outsourcer and the insourcer. Dimitris N. Chorafas describes management needs and shows how technology can be used to meet these needs. The book also highlights the benefits and risks that companies face when they attempt to differentiate themselves through new technology. The book is based on an extensive research project in the US, UK, Germany, France, Switzerland, and Sweden.

Preface

List of Abbreviations

xii

Part I Risk and Reward in the Economy of the Twenty-first Century

Enterprise Management in the Economy of the Twenty-first Century

(22)

Introduction

(2)

Definition of outsourcing and insourcing

(4)

The search for higher return in the new economy

(4)

The modern company is the network

(4)

Knowledge companies and supply chains

(3)

Business markets, consumer markets and the new economy

(5)

Outsourcing, Insourcing and Leveraging Business Operations

(24)

Introduction

(1)

Virtual companies and the sense of strategic outsourcing

(4)

Learning how to apply the practice of outsourcing

(4)

Outsourcing can focus on quality of service only when the deal is thoroughly planned

(5)

Outsourcing done for uplifting the balance sheet

(5)

Establishing the reasons for outsourcing and sorting out priorities

(5)

Operational Risk with Outsourcing and Insourcing

(22)

Introduction

(2)

Operational risk control in a service economy

(5)

How to play safe with operational risks from outsourcing

(3)

Measurement of operational risk through use of operating characteristics curves

(5)

Operational risks which require steady qualitative evaluation

(4)

Understanding the evolution of operational risk control policies and practices

(3)

Supply Chain Integration and the Management of Time; What Outsourcing Should Learn from the Internet

(26)

Introduction

(2)

The shift in paradigm with online supply chain

(2)

Living and working in Internet time

(5)

Fast flow mechanisms and dynamic pricing help in changing our culture

(3)

Client base, brand loyalty, and the security challenge

(4)

The management of technology requires clear objectives and lots of know-how

(4)

Understanding and avoiding the common hype about websites

(6)

Part II What's the Value Differentiation with Outsourcing and Insourcing?

Being in Charge of Outsourcing Agreements

(23)

Introduction

(2)

Satisfaction and dissatisfaction with outsourcing agreements

(3)

Evaluating benefits and selecting contractual norms

102

(4)

Potential efficiencies and inefficiencies with outsourcing

106

(3)

Service level agreements with insourcers

109

(4)

Beware of outsourcing deals that turn sour

113

(3)

The JP Morgan example: an entity may be both outsourcer and insourcer

116

(4)

Can We Leverage R&D and Engineering through Outsourcing?

120

(23)

Introduction

120

(2)

Innovation is basic to every strategic plan

122

(5)

How Charles Kettering characterised the process of innovation

127

(3)

Acquisitions and development. Risks associated to outsourcing

130

(3)

Multisourcing design tools and being aware of pitfalls with linear thinking

133

(3)

Project management. Is it wise to outsource it?

136

(3)

Meeting the challenge of design reviews

139

(4)

What It Takes to Outsource the Pattern of Production

143

(23)

Introduction

143

(3)

Markets, products and the manufacturing industry

146

(3)

Doing away with wrong ideas about production and outsourcing

149

(5)

The changing face of production: cell-based manufacturing and offshore outsourcing

154

(3)

Both outsourcing approaches and inhouse solutions must be foolproof

157

(4)

The changing pattern of production and the role of services

161

(5)

Outsourcing Information Technology and Managing IT Operational Risks

166

(25)

Introduction

166

(2)

The role of information technology in expanding the frontiers of globalisation

168

(5)

Outsourcing the services of IT professionals and their wares

173

(3)

Using the Web for outsourcing

176

(5)

An outsourcing-insourcing partnership must satisfy several prerequisites

181

(3)

Operational risk and the interruption of business continuity at Cantor Fitzgerald

184

(7)

Part III Advantages To Be Gained from Better Organisation and High-grade Personnel

The Prerequisite of Rigorous Organisation Studies

191

(24)

Introduction

191

(1)

Organisational studies, business objectives and span of control

192

(5)

Business continuity and other organisational responsibilities

197

(5)

Information technology investments and organisational change

202

(4)

Killing inertia and bureaucracy through better organisation

206

(3)

Why cutting organisational fat can be a rewarding exercise

209

(3)

Can outsourcing improve the efficiency of the organisation?

212

(3)

Personal Characteristics and Cognitive Complexity Required by the New Technologies

215

(26)

Introduction

215

(1)

Both an analytical mind and a doer's personality are important to success

216

(4)

Background reasons for personality traits and cognitive complexity

220

(5)

Creativity, awareness and the saturation of input-output channels

225

(4)

A company's growth, maturity, recovery and decay depend on the personality characteristics of its people

229

(4)

Interpreting the results of qualitative measurement of personality traits

233

(8)

Globalisation Needs Goals, Better Education and Life-long Learning

241

(24)

Introduction

241

(1)

Work environment and the challenge of staffing

242

(4)

Knowledge, paths of learning and the new economy

246

(4)

The shortfall of trained technologists

250

(4)

The new economy and the effect of the Internet on learning

254

(3)

Appreciating the role of Internet-based learning

257

(8)

PART IV Cost Control Helps the Bottom Line of Outsourcing

Extending Our Company's System of Cost Control to the Insourcer

265

(25)

Introduction

265

(1)

Standard costs and the measures needed for cost control

266

(5)

Profit centres, cost centres and the insourcer

271

(4)

The crucial role of overheads in financial results

275

(6)

Why cost control is a very serious business

281

(5)

Sharp and steady cost control separates the good insourcer from the rotten

286

(4)

Innovation and Cost Control in Information Technology through Re-engineering

290

(19)

Introduction

290

(2)

Re-engineering helps in promoting innovation and in improving efficiency

292

(3)

Without appropriate testing, re-engineering and downsizing are in no way 'sure bets'

295

(4)

The budget for outsourcing and for re-engineering must be tight

299

(3)

Cost awareness improves the strategic advantages gained with computer systems

302

(3)

Charge-backs and the auditing of IT applications

305

(4)

Return on Investment and IT's Impact on Outsourcing Agreements

309

(21)

Introduction

309

(2)

Assistance in innovation and benefits from fast response time

311

(5)

The need for increasing management's awareness of return on investment

316

(3)

Structural change is one of the channels of return on investment

319

(3)

Infrastructural interdependencies with IT outsourcing

322

(3)

The synergy between return on investment and streamlined organisational solutions

325

(5)

Epilogue

330

(2)

Notes

332

(4)

Index

336

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Outsourcing, Insourcing and IT for Enterprise

Summary

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Outsourcing, Insourcing and IT for Enterprise

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Author Biography

Table of Contents

Supplemental Materials

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