Customer Reviews

The Contracting Organization: A Strategic Guide to Outsourcing

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Professor Simon Domberger, an international authority on contracting out (outsourcing) has written THE book on this subject. Domberger has advised many governments and private companies on outsourcing; his wealth of experience is reflected in this 200+ page volume. In it, he carefully analyzes the costs and benefits of contracting out, using a wealth of examples and case studies to drive home his points. Further, Domberger places contracting out in its broader context -- as one of the strategies businesses and public organizations can use to improve, respectively, their bottom line or their delivery of public services. He squarely faces such issues as resistance to contracting out within the outsourcing organizations and suggests practical ways of coping with such hurdles.

In short, this book should be found in the library of every firm and public organization that is already contracting out and wishes to improve its operations. Furthermore, it is a "Must Read" for decision-makers who are contemplating contracting out for the first time.

While the book begins with the usual benefits of outsourcing and how the world is becoming globalized yada yada, two chapters are well worth the used copy price. They offer a nice review of research in economics research journals such as American Economic Review. The first is Chapter 5 on "Specialization", which discusses the economic side of specialization by outsourcing. It makes a compelling argument for both how outsourcing facilitates deeper specialization and the risks that are inherent in treading this path. The second worthy chapter is Chapter 7 on "Control and Flexiblity." This chapter reviews how outsourced activities ought to be controlled, how contracts ought to be structured, and the residual rights that often cause problems. A note of caution for non-academic readers: This is a research-focused book and not (in my opinion) intended for a general audience. The tone is very academic, so don't expect to see a Harvard Business Review style light reading here! The writing style is more like Management Science than American Economic Review. Browse at your local Borders before you buy. There are some insightful nuggets in this nice and concisely-written book. Recommended.

From this book I learned a lot about Outsourcing