Outsourcing to overcome Development Bottlenecks

About this Publication

Overview
This Quick Insight covers the topic of outsourcing. It starts by clarifying the blur between the often confused but entirely different processes of open innovation and outsourcing. It goes on to cover why companies might outsource part or all of their development process to overcome process bottlenecks via faster, more efficient and higher quality outputs than those available from in house resources.

Implications
Development outsourcing has long been a recognized part of product development. However, with increasing focus on process efficiency, the approach not only offers a method to bolster stretched resources, but also eliminates inefficient non-core development activities. Specific implications of this approach include:

• Why employing an outsourcer can offer benefits when it comes to doing specialist work
• How to manage the people side of outsourcing, facing up to both the positives and negatives
• Creating the business case to justify the change
• The additional definers that can make or break an outsourcing relationship

Originality
When it comes to product development outsourcing there are many cultural barriers and potential minefields that hinder the adoption of this effective approach; from the typical “not invented here” attitude of internal developers, to concern over the loss of internal jobs. Developed from original source material, not published elsewhere, this product is a must read for anyone concerned with defining or implementing the practical aspects of outsourcing. With real world ‘Key Insight’s’ along the way, it will help you with everything from making basic efficiency improvements to outsourcer selection and key transition management issues.

Structure
The “Focus on… Outsourcing” section highlights company insights from Eli Lilly, Bose Corporation and Scalar Technologies and describes why real companies are choosing to outsource part or all of their development processes.

The “Realigning Resources to Dramatically Improve Process Speed and Quality” section details the thinking behind the decision to outsource the packaging artwork at Boots Healthcare International. It explains problems that existed, how the strategic direction of the company influenced the decision, and supplier selection. It goes on to describe how the internal consequences of outsourcing were managed and how contracts with outsourcers can be set up to ensure that previous internal issues are not experienced with the new external provider.

A “Comparator Case Study” item describes the criteria that Dräger Safety uses when it selects outsourcing partners highlights the criteria that should be used when it comes to choosing an outsourcing partner.

Table of Content

Key Insights