Outsourcing best practice: transformational and transactional considerations

This paper argues that outsourcing is a powerful strategic lever, which if effectively utilized by senior management can significantly differentiate the host organization from its competitors. As outsourcing is recognized as a more critical boardroom issue, it is considered that the nature of best practice outsourcing requires examination. A review of the literature highlights particular perspectives concerning outsourcing best practice. Further, the results of a Cranfield School of Management survey emphasize critical transformational and transactional considerations in pursuing best practice application. It is concluded that senior management holding a shared view concerning the strategic advantage outsourcing can provide and them attending to the details of the host organization/supplier contract, is the basis to outsourcing best practice. Copyright © 2003 John Wiley & Sons, Ltd.