In a recent posting on Business Week, I had written about the dynamic nature of outsourcing strategies and why companies must develop an exit decision model and an exit strategy concurrently when they first decide to outsource(offshore). The GM decision to insource their IT function, which had been 90% outsourced, might be a perfect example of that concept. They are currently looking for 10,000 IT professionals!!
Atul Gawande just wrote a piece in The New Yorker in which he applies The Cheesecake Factory (TCF – restaurant chain) model to the healthcare system. He cites soaring costs, mediocre service, unreliable quality and significant variability in outcomes/results as the dominant attributes of the current medical system in the USA. Sounds like the typical Supply Chain/Sourcing issues that almost all of us are trying to deal with on a daily basis.
Two weeks ago we talked about some of the techniques that can help launch a successful Spend Analysis (SA) project. This week we’ll focus on answering some of the tougher questions we get asked.