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Volume 27, Issue 4

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Thursday, 16 January 2014 17:27

Outsourcing: Good Contracts are Only the Starting Point

Stick to core competence and competitive advantage, and outsource the rest: such has been the mantra of businesses for decades now. The logic is simple. By using external partners specialised in the non-core activities, for example, accounting, logistics and pay, an enterprise can benefit from that partner’s economies of scale and superior expertise. Profits go up and business continuity is reinforced. Yet outsourcing still gives rise to disappointment and animosity. It turns out that while a watertight contractual agreement is a pre-requisite for dependable outsourcing, it isn’t sufficient.  Organisations need more.

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http://www.opscentre.com.au/blog/outsourcing-good-contracts-are-only-the-starting-point/