Morgan Chase, Allstate, Prudential, Dell, Cisco, Microsoft and Motorola have all adopted it in some form as they shift their managerial frames of reference toward the requirements of the global-network era. Companies would do well, the Oddou (1999) advises, to think rationally - not emotionally - about off shoring's relevant issues: What are their core competencies What form of governance is optimal How will work will be distributed and integrated to the new staff and how well they can get settles with the new environment
Since outsourcing contracts often last for five or more years, corporate officers responsible for selecting the manager with whom they wind up going down the legal path often compare the pact to that of a marriage. The reason is that trust is as important to an outsourcing manager as it is to a spouse. But before an outsourcing relationship reaches that point, many outsourcing managers note that they wind up going through a systematic process of gathering intelligence about their possible partners, and often about themselves.
Manager or staff selection first involves self-assessment. Before even undertaking the manager's selection, a corporation should determine whether it needs to outsource in the first place. A company must assess the raw economics of a project, says Howard Rubin, executive vice president with the Meta Group Inc., which advises corporations on outsourcing. It also must weigh the fixed costs of moving production or a task to an outsourcing vendor, as well as the variable ones, he notes.
Once that's done, a strategic accounting must be completed. "If your business is building bridges, you don't want to worry about maintaining and painting the ones you've already built," Rubin says. Those are things you outsource if it takes away from your core business focus.
It's not unusual for a company to decide not to outsource. One outsourcing officer of a major industrial company based in the Midwest says half the time his company examines an outsourcing request from a business unit, no outsourcing assignment winds up being made.
There are numerous reasons for that, including fear about intellectual assets losing their protection once outside the corporate cocoon. "With IP (intellectual property), once you move outside, you're at risk of losing it," says one outsourcing manager in the Midwest.
That's why trust becomes so important when selecting a Manager. It must be someone who can respect proprietary information. Trust, of course, must be earned. It's somewhat intangible, and generally doesn't emerge until hard fact-finding is completed.
The Midwestern outsourcing manager says when an entire assignment is considered, and staffs needs to be selected, as many as 25 people can be working on a prospective mandate at his company.
In hiring managers from another country or culture there are three aspects to be considered, what codifiability, standardizability and modularizability. Codifiability refers to the extent to which the activities in an occupation can be described completely in a set of