Outsourcing in the State of Confusion

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Outsourcing in the State of Confusion

Paula Weber

September 18, 2000





“Sometimes companies just don’t think through their corporate strategy and business realignment projects." So says Hank Byrne, an elementary school science teacher and jaded former project manager whose former company is a good example of that. Lack of justification and planning led his company to disaster.

Hank's small telecommunications management company, WannaBe Tele-Technology, abruptly decided, in late 1998, to enter the outsourcing game as a ‘PM consulting’ company. The company had been sold to new management who was not content to putter along with a mere $10 million in yearly profits based on the sales of one product. "They wanted the big bucks, and they wanted them fast. They glommed on to outsourcing, being the latest trend, and decided to market themselves as consultants and project managers to go.”   

There was, however, a slight glitch in this master plan.  In order to use WannaBe’s consulting, outsourcing and PM services, clients had to buy the BigDeal product, and WannaBe had to implement it for them.



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