6. Outsourcing Strategy

  1. Steven M. Bragg

Published Online: 13 DEC 2011

DOI: 10.1002/9781118268391.ch6

The New CEO Corporate Leadership Manual: Strategic and Analytical Tools for Growth

The New CEO Corporate Leadership Manual: Strategic and Analytical Tools for Growth

How to Cite

Bragg, S. M. (2011) Outsourcing Strategy, in The New CEO Corporate Leadership Manual: Strategic and Analytical Tools for Growth, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118268391.ch6

Publication History

  1. Published Online: 13 DEC 2011
  2. Published Print: 11 JUL 2011

ISBN Information

Print ISBN: 9780470912874

Online ISBN: 9781118268391

SEARCH

Keywords:

  • chief executive officer (CEO);
  • costs;
  • outsourcing decision;
  • outsourcing strategy;
  • senior management

Summary

A general strategy that the chief executive officer (CEO) should consider is the selective use of outsourcing for some parts of her company. The use of outsourcing has exploded, with many companies using it primarily to drive down their costs. This chapter includes a discussion of the many risks that go along with moving a function to a supplier. A large number of reasons are given that could form the basis for a decision to outsource a function, either individually or in combination. The chapter gives a short discussion of who should make the decision to outsource concluded that for all but the most minor functions, this decision should be confined to senior management. The chapter provides a brief description of the suppliers who provide outsourcing services—how they operate and why they can provide services of higher quality than a company’s in-house functions.

Controlled Vocabulary Terms

chief executive officer (CEO); costs; outsourcing; senior management