Per V. Jenster & Henrik Stener Pedersen 
Outsourcing — Insourcing 
Can vendors make money from the new relationship opportunities?

Outsourcing became fashionable in the late 1980s, came of age in the 1990s, and is now a normal part of corporate life. Written by well-known and respected business authors and incorporating new research from Copenhagen Business School, this book covers the newest elements of outsourcing today and discusses how strategic alliances should be established between the buyer and supplier. Topics explored throughout include the scope, scale and importance of what is outsourced; the pricing and risk sharing involved; and changes to organizations which lead them to seek more outsourcing.

Table of Content

Preface.

Introduction.

1. Understanding the opportunities.

Introduction.

What is outsourcing?

The origins of outsourcing.

Trends and pressures.

Initial concepts.

Outsourcing today.

Traditional activities.

Peripheral activities.

Critical activities and processes.

Strategic and problem-solving activities.

Summary.

2. Moving to supplying total solutions.

Introduction.

Management issues for outsourced activities.

Traditional activities.

Peripheral activities.

Critical activities and processes.

Case Study: The 1999 crisis at the UK Passport Agency.

Strategic and problem-solving activities.

Case study: The European Chewing Gum Company.

Summary.

3. Retooling marketing and the sales force.

Introduction.

The search for a better way to trap mice.

Market segmentation. variables

Segmentation approaches.

Criteria for initial screening.

Evaluating potential. segments

Defining the market.

Timing, niche markets and global considerations.

Sales force management in a changed environment.

Sales force development for supplying total solutions.

Building sales force. capabilities

Summary.

4. Managing buyer/supplier relationships .

Introduction.

The challenges for suppliers.

Case Study: Timex Dundee.

Case Study: IBM Denmark.

Supplier Challenge 1 – The need for additional competencies.

Supplier Challenge 2 – Managing the entry phase.

Supplier Challenge 3 – Running the contract.

Case Study: Driver and Vehicle Licensing Agency, UK.

The challenges for buyers.

Buyer Challenge 1 – The pre-bid phase.

Buyer Challenge 2 – Identifying the key suppliers.

Buyer Challenge 3 – Awarding the contract .

Buyer Challenge 4 – Running the contract.

Summary.

5. Pricing solutions and managing risks.

Introduction.

The value of strategic pricing.

Fundamental pricing concepts.

Pricing the bundle of goods and services.

Pricing when distributors are involved.

Price administration.

Understanding the risks to suppliers and buyers.

Mechanisms for bridging uncertainties.

Summary.

6. ‘Transitioning’ human resources.

Introduction.

Setting the scene.

The fundamentals.

Strategies for employee transfer.

Pitfalls and critical factors.

Summary.

7. Structuring ‘next generation’ IT solutions.

Introduction.

The changing role of IT departments.

The real problem with IT investments.

What ROI?

IT: Over-administrated and under-managed.

The IT paradox.

The ‘next generation’ approach to IT .

Summary .

8. Achieving quality in outsourcing.

Introduction.

Understanding the role of quality management.

Defining quality for integrated products and services.

Challenges: Leadership and strategy.

Challenges: Processes.

Challenges: People

Factors conditioning quality management.

Summary.

9. Getting a good slice of a bigger pie.

Introduction.

The outsourcing pie.

How good are we at making larger pies?

How sellers can make the pie larger.

How buyers can make the pie larger .

In the final analysis.

The Claimpower story.

Summary.

Index.

About the author

Per V. Jenster is a Professor at Copenhagen Business School,
where he has held the post of Associate Dean with responsibilities
for various MBA programs. He was formerly a professor of marketing
at IMD, Lausanne, Switzerland. He completed his doctorate in
Strategic Management at the University of Pittsburgh and was later
a faculty member at the University of Virginia. His industry
experience includes extensive consulting in the areas of strategic
management, marketing planning, competitive analysis and cost
evaluation studies, and his research is widely published in books,
articles and case studies.

Henrik Stener Pedersen manages Oxford Research, a
Copenhagen-based international research company. He obtained his
Ph D from Copenhagen Business School, focusing on outsourcing and
quality management, and has conducted studies and analyses in the
fields of globalisation, HR policy, competence development and
labour market issues.

Patricia Plackett holds a Ph D in anthropology and is
currently completing a Ph D in industrial economics and strategy at
Copenhagen Business School, where her research focuses on radical
innovations. She has lectured in various MBA and other programmes.
Her career also includes management positions in Canada and New
Zealand.

David Hussey was for many years a well-known authority on
strategic management, and wrote or edited more than thirty books.
He spent fourteen years as Managing Director of Harbridge
Consulting Group and was experienced as both a practitioner and a
consultant to major global companies across many sectors and
industries. He was a founder of the Strategic Management Society,
Founding Editor of the Journal of Strategic Change, a
director of the Japan Strategic Management Society, and a visiting
professor at Nottingham Business School. For his contributions to
the effective application of strategic management practices he was
awarded the Japan Strategic Management Society Ansoff Award in
1999. David Hussey died in January 2003.