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BOOK SUMMARY
Chapter 1 – Why Outsource?
- Learn the drivers behind companies’ decisions to outsource
- Understand how outsourcing fits into the big picture
Chapter 2 – The $483 Billion Question – "When to
Outsource and When Not to Outsource?"
- Find out what the most
outsourced service on earth
today is - Understand the diverse landscape of outsourcing
- Discuss Core Competence as an elusive concept in the debate on outsourcing
- Learn how to navigating the grey area between "Must outsource" and "Must not outsource"
Astray by These Myths about Outsourcing
- Understand that outsourcing is an emotionally charged topic that
can be prone to fabricated myths - Learn about the seven myths that can fog your vision
- Learn how to debunk these myths
Traditional Outsourcing Fails
- Read and analyse various
examples of outsourcing catastrophes - Learn that outsourcing tasks does not transfer responsibility for
those tasks - Learn the specific implications of outsourcing failure
- Understand the key mistakes in large scale outsourcing projects and the reasons behind them
Doing about Outsourcing
Failures is Not Enough!
- An overview of different outsourcing models
- Learn how these models stack up against one another in various criteria, including:
- Modularisation and collaboration
- Control and flexibility of the agreement
- Strategy and degree of outsourcing
- Duration and stakes of the contract
- Resources needed and localization
- Size and assets specificity
Modularisation is the
Solution
- Learn the secret behind outsourcing success and the key pillars of Modularisation: Standardisation, Homogenisation, Commoditisation
- Understand benefits and approaches to Modularisation
- Get the overall taste of Results-Focused Outsourcing and Modularisation (ROM), the key model of this book
- Understand briefly what each stage of ROM entails
Critical
- Understand that the failure rate
of outsourcing is still high and failures often happen because of poor preparation process - Learn the key questions to ask during preparation
- Learn the key steps in
preparation: Set service
objectives - Analyse customers & product segmentation – Define service parameters - Get some key pointers about
issues to manage during the preparation stage
Engagement
- Understand the importance and benefits of the market
engagement stage - Learn the different engagement processes for different needs
- Learn the key steps in market engagement: Gather service data and requirements -Identify
Market Service Dynamics - Custom design market engagement process - Understand the importance of a structured approach towards market engagement
- Identify the five most common mistakes in vendor selection
- Learn the key vendor selection steps: Collate and analyse
vendors’ propositions – Select
the vendor – Create and agree on performance measures - Learn about different types of criteria, selection methods, types of suppliers
- Understand that negotiation should help you retain control
and its key steps
Integration
- Understand why integration is necessary for outsourcing to work
- Learn that a continuous flow of information, collaborative
partners enhance the relationship - Understand that Supply Chains
are morphing into integrative business networks and its implications - Learn the key steps in integration: Create data collection management & analysis
protocols - Create presentation standard for data and information -Put in place protocols, systems & processes - Learn how to motivate suppliers and the importance of corrective procedures
Creation
- Understand that value means
more than monetary gains - Understand the network effect
and the real power of business networks - Distinguish between Value accretion vs. Value synergy vs. Value synchronicity
- Learn how value creation distinguishes between good and bad outsourcing
- Identify the qualities that enable value creation when outsourcing
- Learn how to evaluate value creation
- Learn key steps in value creation: Prepare report – Benchmark – Analyse variance and root cause – Analyse corrective actions – Forward planning
Japanese shipbuilding
- Understand how ROM can boost business success with a historical case study of Japanese shipbuilding
- Learn who the mastermind
behind Japan’s success was as
well as his methods and ideas - Understand how the shipbuilding industry illustrated ROM key concepts
- Understand the key benefits of ROM in shipbuilding, which can
be applied across different
sectors.