By looking at various possible scenarios and investigating the critical factors driving each one, we will attempt to say whether outsourcing will really become the dominant business model in the next 5-10 years. Will all businesses really break up into separate capabilities and buy each other's services whenever they need to achieve anything, or will there be clear limits to what can be outsourced?

This project is part of an ongoing programme of work on outsourcing which impacts IT departments not only because they are often outsourced themselves but because technology is a key enabler and driver of the general trend towards disintegrated business structures. By looking at the medium-term future we will make it easier to plot a path from here to there, understanding how to outsource the right things to the right providers and managing the relationships successfully to obtain services that are cheaper, better, quicker, more flexible or whatever is needed at the time.

The Output

The output of the project will be presented on the Research Services website in 6 parts covering the various scenarios we are examining and the critical factors that may drive each one - so if you are interested watch the website carefully. The final report will be available on the web in early December and the printed version will be published and mailed in December.

Part 1 - Four Scenarios
 
Four possible futures for outsourcing will be defined and fleshed out as a framework to think about the key factors influencing that future.  
Findings published July 25
Part 2 - The Cost Factors
 
How does outsourcing reduce costs? Does it always reduce costs and can it sustain the advantage in the long term? Are there areas in which additional management overheads make it uneconomical?  
Findings published July 25
Part 3 - The Focus Factors
 
How does outsourcing reduce the workload on managers and allow them to focus on the core business? Can it have the opposite effect? Is the notion of a 'core' business even a good way of thinking about what can and cannot be outsourced – and if not, how should we think about it?  
Findings published July 30
Part 4 - The Alignment Factors
 
Which kinds of activity and objective are easiest to manage because the interests of customer and supplier align? When does it become difficult to keep their interests aligned and what management approaches can be used to make them work?  
Development workshop July 29
Findings published August 6
Part 4 - The Innovation Factors
 
Does outsourcing stimulate or inhibit innovation? Under what circumstances and with what kind of relationship? Can ‘innovativeness’ be switched on when required and what is necessary to do so.  
Development workshop September 9
Findings published September 17
Part 5 - The Risk Factors
 
What kinds of risk does outsourcing introduce and what does it mitigate? Can risk management approaches be used to change the balance in favour of outsourcing?  
Development workshop September 23
Findings published September 30
Part 6 - Conclusion
 
How will the interplay of these various factors influence the future? Which scenario or combination of scenarios will win out and why? What capabilities will be critical to the success of customers and suppliers in this environment?  
Development workshop October 7
Findings published October 15
Report publication
 
On line Early December
In print Late December