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Many businesses today are cutting back on operations to focus on the core business, reorganizing their business practices by downsizing, restructuring or reengineering, and contracting out various functions and tasks. Outsourcing (or contracting out work) started in the manufacturing business in the early 1980s, primarily as a means of cutting back staff and saving on wages. Often a task is considered for outsourcing if the work performed by a consultant would require hiring additional staff if it were done inhouse. In addition, work handled by a former employee who may perform a specific service is also considered as outsourcing. The decision to outsource is mainly based on cost, set-up time, and the availability of expertise.
According to current literature, outsourcing is a trend that will continue. There are many benefits to outsourcing, including freeing up management resources, sharing costs, creating integrated networks, building new organization structures, training staff, and interfacing with other information systems. Outsourcing offers a company functional specialization and flexibility ("Farming Out the Farm," Economist 330 [7853] March 5, 1994, p. 79). On the downside, some of the negatives include difficulties in maintaining confidentiality, retaining control, and confronting transition problems. The following is a bibliography of publications dealing with outsourcing. The items listed here (as well as other publications on this topic) can be obtained through the local library, through the library's interlibrary loan system, or by contacting the publisher directly. Suggestions for future topics and/or items to include in this column can be sent to Cynthia C.
Ryans, Libraries and Media Services, Kent State University, Kent, Ohio 44242.
Periodicals
Bernstein, Aaron. "Outsourced - And Out of Luck," Business Week 3433 (Industrial/Technology Edition) (July 17, 1995), pp. 60-61. Outsourcing has expanded through most every industry since the early 1980s. The primary reason is to conserve staff in all areas of business. While lower wages may not be the prime motive to outsource, they are sometimes the result.
Burzawa, Sue. "Benefit Plan Administration Challenges Have Employers Looking at Outsourcing, Technology," Employee Benefit Plan Review (January 1995), pp. 8-11. As the adminsitration of employee benefit plans becomes more complex, companies are looking to outsourcing as a way to meet this challenge. This article reports on an interview discussing the challenges for new employers sponsoring benefit...