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Author:Hendry, J.
Title:Culture Community and Networks. The Hidden Cost of Outsourcing
Journal:European Management Journal
1995 : VOL. 13:2, p. 193-200
Index terms:ORGANIZATIONAL CHANGE
ORGANIZATIONAL DESIGN
MANAGEMENT STRUCTURE
ORGANIZATIONAL CULTURE
Language:eng
Abstract:One of the strongest and most sustained trends within business over the last ten years has been the trend towards outsourcing. In this paper John Hendry argues that, supported by political ideology, management fashion and short-term responses to recessionary pressures the benefits of outsourcing have become so obvious that they have hidden the very real associated costs. He first reviews the economic logic and competitive reasoning in support of outsourcing and show how these have been reinforced by both political ideology and management fashion. Drawing on an informational model of organisation, he then explores what is lost when an activity is oursourced and how this loss might affect the capability of the organisation. He conclude that any move towards outsourcing should be assessed in terms of its impact on organisational characteristics.
SCIMA record nr: 138606
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