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The Outsourcing Handbook


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Table of Contents

1 Ten common traps of outsourcing The ten common traps How to manage outsourcing engagements successfully 2 The outsourcing life cycle Stages of outsourcing Things to bear in mind 3 Strategic assessment Four elements of strategic assessment Business-value assessment Operational assessment Financial assessment Risk assessment Integrating the four risk elements -- the business case Conclusion and checklist 4 Defining your needs An in-depth look at operational assessment Outsourcing strategies Defining the needs Conclusion and checklist 5 Vendor assessment Types of vendor Response to the RFP and SOW The process of vendor assessment Common errors when choosing vendors Conclusion and checklist 6 Negotiation and contract management Negotiation management Contract management Conclusion and checklist 7 Project initiation and project transition Project initiation Project transition Key considerations Conclusion and checklist 8 Managing the relationship Work administration Communication management Knowledge management Personnel management Financial management Conclusion and checklist 9 Continuing, modifying or terminating the arrangement The argument for continuing Events that call for evaluation Modification or exit strategies Common decision errors The exit strategy Conclusion and checklist 10 Back on the dance floor -- repeating the process Knowledge management Metrics Outsourcing Management Maturity Model (OMMM) Relationship management office (RMO) Conclusion 11 Industry best practices Best practices The future of outsourcing Final comments

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This book focuses on the whole lifecycle process of conducting an outsourcing project - what it takes to establish, implement and manage successful outsourcing initiatives.

About the Author

Mark J. Power is the President of ROS Incorporated, an outsourcing education, process and consultancy company based in Lisle, Illinois. ROS advises and educates organizations on outsourcing strategies, design and implementation by using best practices that maximize return on investment. He has 20 years experience in the high-tech industry and has held senior management and executive positions. A seasoned global outsourcing executive, he has designed, implemented and managed multimillion-dollar manufacturing, IT and R&D outsourcing initiatives in the United States, Mexico, Europe, the Middle East and India. Kevin C. Desouza is the President of the Engaged Enterprise, a strategy consulting firm with expertise in a variety of areas, including knowledge management and crisis management. Also Director of the Institute for Engaged Business Research, he is the author of Managing Knowledge with Artificial Intelligence (Quorum Books, 2002), co-author of Managing Information in Complex Organizations (M.E. Sharpe, 2005) and Engaged Knowledge Management (Palgrave Macmillan, 2005) and editor of New Frontiers of Knowledge Management (Palgrave Macmillan, 2005). In addition, he has published over 80 articles in prestigious practitioner and academic journals. Mr. Desouza is frequently an invited speaker on a number of cutting-edge business and technology topics for national and international, industry and academic audiences. Carlo Bonifazi has 25 years of diverse experience in the technology field and has held senior management positions in software development and production, product development, strategic alliances, and IT. He has led global outsourcing product development and IT initiatives and is the Co-founder and Vice President of ROS Incorporated.


"A comprehensive, 'user-friendly' nicely organised reference and guide which is confidently recommended reading." The Midwest Book Review "Provides a strategy that any manager can implement." European Foundation for management development "A hands-on and applied approach to exploring the intricacies of commencing, managing, renewing and/or terminating outsourcing engagements." Journal of Economic Literature "Helps the reader understand each stage of the outsourcing process, improves and strengthens the process once it has been implemented and gives important details needed to ensure success." Abstracts of Public Administration, Development and the Environment "Provides detailed insight into the processes, issues, pitfalls and successes for any type of outsourcing activity. The detail and advice given in the core of the book are first class; the authors do not assume any prior knowledge of the subject matter and they provide a valuable set of customer outsourcing methodology activities" E-Code

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