Outsourcing: Towards the ‘Shamrock Organization’

Observes that organizations can gain agility and effectiveness by recognizing which activities it should stop doing, using external providers to undertake them on its behalf. Considers the concept of outsourcing and identifies five stages characteristic of most models of this process: embryonic, developmental, consolidation and inter-linking outsourcing, business process outsourcing and the use of bespoke and custom-built frameworks for outsourcing. Discusses the growth of outsourcing and the advantages that may be associated with value realization and value creation through outsourcing. Comments on the challenges, problems and risks associated with outsourcing and the drive to achieve a unique and distinct combination of core competences that distinguish the organization. Reflects on outsourcing as a partnership or transactional contract and the factors that organizations should consider when initiating and extending outsourcing