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Smarter Outsourcing: An executive guide to understanding, planning and exploiting successful outsourcing relationships by Robert Morgan, Jean-Louis Bravard

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BPO v. business transformation outsourcing

Once a CEO has decided that savings of this order are viable, either through a ‘big bang’ approach or in phases, then business transformation outsourcing (BTO) becomes a viable and potentially much more effective option. This involves extending the approach formerly taken with one function to the whole of a division or an entire complex business. With BTO, the CEO takes industrial-strength characteristics and skill sets from suppliers, and swings them into line behind a drive to transform the performance of the division or business by stripping it down and rebuilding it like a car engine. Any component parts that are not suitable or that no longer fit will be thrown away.

The risk of disruption to the ...

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