Outsourcing: Learning from the Past, Looking to the Future

by Norris W. Overton

The majority of this Executive Report focuses on a case study that traces the outsourcing process at Amtrak from its inception and, with the advantage of hindsight, relates the lessons the company has learned. It explores the impact of Amtrak's failure to adequately focus on the strategic benefits of outsourcing as a result of placing too much emphasis on tactical, short-term goals. It also examines how this failure was compounded by ineffective management of the contractual relationship. In short, this case study shows how Amtrak made the right moves at first but lost the potential benefits of outsourcing through mismanagement.

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Outsourcing: Learning from the Past, Looking to the Future April 2000