The next step for the CEO

Abstract

Purpose This paper aims to distill research findings that will influence CEO and top team behaviour. Design/methodology/approach The findings are based on case study research into 650 plus organisations and their outsourcing arrangements in Europe, Asia Pacific and USA. Findings CEOs have five reasons for ensuring IT‐based services outsourcing is included in their strategy discussions. IT outsourcing impacts upon a firm's market value. The sheer size of outsourcing expenditure merits senior management attention. Getting outsourcing wrong can seriously damage corporate health. At the same time, the evidence shows examples of outsourcing playing a strategic role for many businesses, and only the CEO has the real bargaining power to make outsourcing deliver this strategic dividend. Research limitations/implications The research was carried out by the LSE's Outsourcing Unit and uses in‐depth longitudinal case studies to identify outsourcing practices that work, in terms of achieving superior business results. Practical implications The paper spells out the reasons why CEO and top teams should be engaged in their outsourcing decision making and management. Originality/value The paper establishes well researched grounds for why CEOs and top teams need to act differently if more effective outsourcing is to be achieved.

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