Supply Chains and Porous Boundaries: The Disaggregation of Legal Services

The economic downturn has had significant effects on law firms, and is causing many of them to rethink some basic assumptions about how they operate. In important respects, however, the downturn has simply intensified the effects of some deeper trends that preceded it, which are likely to continue after any recovery that may occur. This paper explores one of these trends, which is corporate client insistence that law firms “disaggregate” their services into discrete tasks that can be delegated to the least costly providers who can perform them. With advances in communications technology, there is increasing likelihood that some of these persons may be located outside the formal boundaries of the firm. This means that law firms may need increasingly to confront the make or buy decision that their corporate clients have regularly confronted for some time. The potential for vertical disintegration is a relatively recent development for legal services, but is well-established in other sectors of the global economy. Empirical work in several disciplines has identified a number of issues that arise for organizations as the make or buy decision becomes a potentially more salient feature of their operations. Much of this work has focused in particular on the implications of relying on outsourcing as an integral part of the production process. This paper discusses research on: (1) the challenges of ensuring that work performed outside the firm is fully integrated into the production process; (2) coordinating projects for which networks of organizations are responsible; (3) managing the transfer of knowledge inside and outside of firms that are participants in a supply chain; and (4) addressing the impact of using contingent workers on an organization’s workforce, structure, and culture. A review of this research suggests considerations that law firms will need to assess if they begin significantly to extend the process of providing services beyond their formal boundaries. Discussing the research also is intended to introduce concepts that may become increasingly relevant to law firms, but which currently are not commonly used to analyze their operations. Considering how these concepts are applicable to law firms may prompt us to rethink how to conceptualize these firms and what they do. This paper therefore is a preliminary attempt to explore: (1) the extent to which law firms may come to resemble the vertically disintegrated organizations that populate many other economic sectors and (2) the potential implications of this trend for the provision of legal services,the trajectory of legal careers, and lawyers’ sense of themselves as members of a distinct profession

Private Roads, Public Costs: The Facts About Toll Road Privatization and How to Protect the Public

Provides an overview of trends in toll road privatization and discusses implications for the public, including loss of control, financial risk, and lack of transparency. Proposes principles that would protect the public interest in privatization deals

Discovering Strategies to Improve Business Value in Outsourcing Projects

This paper deals with the problem of leveraging client business value in a software development outsourcing relationship. We have observed software development projects from two different Dutch IT outsourcing companies and studied the approach they apply in their (successful) projects. The results show that they create a role dedicated to facilitate communication. This arrangement has the potential to put team members in a better position to communicate, facilitating the transfer of information supporting the rationale behind design decisions. Teams are thus better equipped to anticipate change and to react faster in solving everyday problems. This paper describes our observations and the practical implications we expect, such as the improvement of re-buy intention on the client's side

REVIEWING OUTSOURCING CONTROVERSY IN INDONESIA (An Exploratory Study of Human Resources Outsourcing Practice in Semarang City)

Outsourcing in Indonesia is still a controversy. The different concept of outsourcing between employers (vendors and users), employees/outsourced workers, and government makes another problem in outsourcing implementation, especially in industrial relationship either in enterprise and macro level. This study aims to determine the concept of outsourcing of each element of the tripartite, the problems that arise in the implementation, and solutions from each party, in dealing with the practice of the working system. The problems under study, based on specific issues related to industrial relations, including: wages, welfare programs, health and safety, discrimination, job security, and dispute resolution, and termination of employment. This qualitative research is an exploratory, with the data collection methods: focus group discussions, observations, interviews, and study documentation. The data collected from employers (vendors and users), the national unions, worker outsourcing, and government within the scope of Semarang city. The results showed that the problems that arise due to differences in each party's conception of the tripartite elements. Uncertainty rules of outsourcing is a major problem, giving rise to labor flexibility in the implementation, which implies profitable for each party, especially the workers of outsourcing. In the end, the regulation enforcement related to the implementation of the outsourcing firm is badly needed, to compromise the disputes of workers and employer interests

Diverse virtual social networks: Implications for remote software testing teams

This paper evaluates offshore outsourcing in the IT testing industry and determines what conditions determine its success. There is particular focus on the influence of diversity in teams on group relationships. Two studies are described: the first, investigated the perceptions of professional software testers on the critical factors of offshore outsourcing; and the second study looked at the ability for diverse teams to form close working relationships through virtual networks. We find that overt diversity factors inhibit interaction across nationality boundaries. The limitations of virtual networks for fostering personal communications is apparent in preventing group members from overcoming the initial aversion to mix with out-group members, which could be achieved with closer and more personal communications between members with different diversity factors in normal face to face communications. Where software testing teams are outsourced globaly, and must rely on virtual communications, there seems potential for significant difficulties in developing close working relationships, which on the one hand, can be negative for group cohesion, but one the other hand, can be positive for encouraging imparitality

Vision: December 2011

This document is part of a digital collection provided by the Martin P. Catherwood Library, ILR School, Cornell University, pertaining to the effects of globalization on the workplace worldwide. Special emphasis is placed on labor rights, working conditions, labor market changes, and union organizing.V_VisionDEC.pdf: 100 downloads, before Oct. 1, 2020

An evolutionary stage model of outsourcing and competence destruction : a Triad comparison of the consumer electronics industry

Outsourcing has gained much prominence in managerial practice and academic discussions in the last two decades or so. Yet, we still do not understand the full implications of outsourcing strategy for corporate performance. Traditionally outsourcing across borders is explained as a cost-cutting exercise, but more recently the core competency argument states that outsourcing also leads to an increased focus, thereby improving effectiveness. However, no general explanation has so far been provided for how outsourcing could lead to deterioration in a firm‟s competence base. We longitudinally analyze three cases of major consumer electronics manufacturers, Emerson Radio from the U.S., Japan‟s Sony and Philips from the Netherlands to understand the dynamic process related to their sourcing strategies. We develop an evolutionary stage model that relates outsourcing to competence development inside the firm and shows that a vicious cycle may emerge. Thus it is appropriate to look not only at how outsourcing is influenced by an organization‟s current set of competences, but also how it alters that set over time. The four stages of the model are offshore sourcing, phasing out, increasing dependence on foreign suppliers, and finally industry exit or outsourcing reduction. The evolutionary stage model helps managers understand for which activities and under which conditions outsourcing across borders is not a viable option. Results suggest that each of these firms had faced a loss of manufacturing competitiveness in its home country, to which it responded by offshoring and then outsourcing production. When a loss of competences occurred, some outsourcing decisions were reversed