Outsourcing and Flexibility

by George Westerman

As I was sitting down to write this month's commentary, an e-mail appeared on my PC. It was Rob Austin's 19 September 2001 Business-IT Strategies E-Mail Advisor on the dangers of a pure profit-maximizing mentality in outsourcing decisions. He was eloquent in his assertion that benefit/cost calculations often de-emphasize potentially important costs when those costs cannot be scientifically proven. He mentioned that, in outsourcing airport security, managers may have emphasized cost savings over the potential risks. This purely financial decision may have had disastrous implications.

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Outsourcing and Flexibility 26 September 2001