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CLIPPINGS

CLIPPINGS The litmus test for evaluating a true outsourcing offer as opposed to a reengineering project is called the monkey test. Consider any particular set of context responsibilities those that do not affect share price as the monkey. The question is, at the end of the day, Who has the monkey on their back The fundamental value of any outsourcing offer is to move the monkey from you back to theirs. If the monkey stays on yours, you have not won back any of the scarce resources needed in the age of the Internetyou still are allocating time, talent, and management attention to managing the monkey. That's a bad deal. But conversely, if you can truly free yourself from the monkey, then regardless of whether there is an immediate cost reduction to take to the bottom lie, you have won the key battle of capturing scarce resources to refocus on core activity. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business Strategy Emerald Publishing

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0275-6668
DOI
10.1108/eb040109
Publisher site
See Article on Publisher Site

Abstract

The litmus test for evaluating a true outsourcing offer as opposed to a reengineering project is called the monkey test. Consider any particular set of context responsibilities those that do not affect share price as the monkey. The question is, at the end of the day, Who has the monkey on their back The fundamental value of any outsourcing offer is to move the monkey from you back to theirs. If the monkey stays on yours, you have not won back any of the scarce resources needed in the age of the Internetyou still are allocating time, talent, and management attention to managing the monkey. That's a bad deal. But conversely, if you can truly free yourself from the monkey, then regardless of whether there is an immediate cost reduction to take to the bottom lie, you have won the key battle of capturing scarce resources to refocus on core activity.

Journal

Journal of Business StrategyEmerald Publishing

Published: May 1, 2000

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