Tuesday, December 4, 2012

Simple but effective rules for outsourcing


In the article “Simple rules for complex world” by Donald Sull and Kathleen M. Eisenhardt, there is a lot of emphasis on setting simple rules and following them as part of a manager’s strategy to align, adapt and coordinate work between teams. Expanding the argument further, the way in which outsourcing is done these days is becoming more and more redundant. The companies usually outsource the work to abroad which are routine and which they think will be easy to coordinate by the team. However, this under-utilization of resources leads to increased cost and inefficiency. But there are some rules that can be followed in-order to streamline coordination and increase alignment and efficiency. 

Black-boxing can ensure coordination across locations by reducing the need for team mates at different geographies to interact on an ad-hoc basis. Easing communication between employees via email, telephone or videoconferencing can help open up ways to effectively coordinate work in different time zones. Building a common ground on which there can be knowledge sharing between employees working offshore and onshore can lead to time-efficient business practices. These rules although have their own limitations can prove to be very effective in increasing operational efficiency of a company and can form an important part of a company’s strategy.

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