In or out? (Outsourcing)

Article Type: From: Strategic Direction, Volume 24, Issue 7.

Taplin R., Fry G. Banking Technology, December 2007/Jan 2008, Start page: 18, No. of pages: 3

Purpose To consider the broader costs and benefits of outsourcing. Design/approach/methodology Summarizes major points in the published survey edited by Taplin entitled: “Outsourcing and human resources management: an international survey”. Looks at insourcing and operations management,considerations when outsourcing and presents a decision matrix of ten “critical business issues”. Findings Finds that the problems and risks of operations do not pass to the outsourcer, but have to be managed inhouse. Proposes hiring a specialist team to work inhouse when there are work crises, at a lower cost than hiring and training new workers. Demonstrates many weakness in poorly constructed outsourcings. Practical implications Asserts banks should obtain hit teams for specialist problems from specialist agencies. Originality/value Presents a review of the authors’ own book, leaving open the practicality of having a highly trained team on an agency’s books able to move into a rival bank. ISSN: 0266-0865 Reference: 37AE271

Keywords: Banks, Cost-benefit analysis, Outsourcing