Experts
Comment on Outsourcing |
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| I
believe you should outsource everything for which
there is no career track that could lead into
senior management.
Peter Drucker
in "Peter Drucker Sets it Straight", Fortune,
01/12/04
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| "Do
what you do best & outsource the rest"
- Tom Peters |
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| "If
we are not realistic about what we are good at,
then there is a chance of going backwards in the
face of further competition... Innovative
companies need to look at which things they should
do offshore and what they should do at home"
"For
Microsoft, outsourcing has been a way to temper
the expansion of our work force & reduce management
overhead. I hope this keeps us from growing big
in the wrong areas and becoming ineffective through
too much overhead."
- Bill Gates,
Microsoft |
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Your
back room is somebody else's Front Room
"Don’t
own a cafeteria: Let a food company do it. Don’t
run a print shop: Let a printing company do that.
It’s understanding where your real value added
is and putting your best people and resources
behind that.
Back rooms by definition will never be able to
attract your best. We converted ours into someone
else’s front room and insisted on their best.
This is what outsourcing is all about."
-
Jack Welch, ex-CEO of GE |
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| Offshore
outsourcing has been quietly building up for years
but 2003 will likely be remembered as the year
that it burst into the mainstream. Despite
concerns in the United States about unemployment
and lost innovation, there is no turning back. The
pressure on U.S. companies to cut costs and
compete globally is too compelling.
Forbes,
12/19/03
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| "Today,
outsourcing is not just a trend; it is an integral
part of how smart companies do business....The concept has matured. It now
connotes a strategic relationship between
partners, with shared risks and goals - a
relationship in which a company concentrates on
its core business and relies on outsourcing
partnerships to get the rest done. Unless managers
periodically reexamine how they make sourcing
decisions - and how resources get allocated - they
can find themselves... starving what is core".
- Harvard
Business Review |
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| It's
not a matter of whether to send work offshore but
rather under what circumstances and how to
minimize risks.
Business
Week, 01/12/04 |
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“When you have a company like GE stating
that it saved $500 million last year (2002) because
of its IT enabled Services set-up in India, that’s
very compelling reasoning indeed for myriad others
to follow suit.
Similar logic has been prompting global giants
like...American Express, Standard Chartered,
HSBC,
Delta Air Lines, America Online, and some 300
others from the Fortune 500 list, to do business
with Indian IT services companies, and that’s
extending to BPO as well.”
http://www.express-computer.com |
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| The
majority of people working for an organization
will be either part-time staff, multi-skilled
'portfolio workers' or outsourced
'deployees', managed either independently or
through a separate outsourcing organization.
Peter Drucker
in "The Next Society: a survey of the near
future", The Economist,
11/03/2001
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“The
structure of the world has changed. The U.S. no
longer has a lock on high-tech, white-collar
jobs"
-
Craig R. Barrett, CEO, Intel |
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"There
is no job that is America's God-given right
anymore. We have to compete for jobs."
-
Carly
Fiorina, CEO of Hewlett-Packard Co
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