Fourth Rule of E-business

The goal of new business designs is to create flexible outsourcing alliances between companies that not only off-load costs but also make customers ecstatic.

In order to deal with change, companies and autonomous business units need an effective business design that allows them to react rapidly and continuously, innovate ceaselessly and take on new strategic imperatives faster and more comfortably.

To deal with dynamic change, many organizations have adopted the option of outsourcing. The simple reason is that individual companies simply cannot do everything well. In the first generation of outsourcing, the focus was on gaining efficiency and cost reduction. For instance, because of the increasing complexity of computers and networks, more and more firms began outsourcing their technology management. Among the biggest beneficiaries of this trend have been computer services firms such as IBM, Anderson Consulting and EDS. BellSouth outsourced its entire information technology (IT) function to EDS and Anderson Consulting in a contract worth more than $4 billion.