ART - Current Trends in Outsourcing Practice - Government & Business 2008

The article discusses the current trends in outsourcing in both government and business sectors. It explores the causes and justifications for outsourcing, such as cost savings, improved services, and access to technology. The primary motivation for outsourcing in most cases is the cost-savings to the business. The article also examines the historical context of outsourcing and the interaction between private industry and government in promoting the practice. It discusses the role of organizational field and domain in shaping the popularity of outsourcing, as well as factors like elite influence, competition, innovation, and professionalism. The article traces the evolution of outsourcing from small businesses to larger enterprises, highlighting the benefits of outsourcing for specialized services and capital inflow. It also discusses the impact of factors like Just-In-Time purchasing and the use of temporary employees. The article concludes that outsourcing is seen as a leading supply chain reform that saves costs and enhances operating flexibility. It emphasizes the increasing scope of functions being outsourced, including procurement and enterprise resource planning, and the use of application service providers.