Journal article
Examining the magnitude and sources of cost savings associated with outsourcing
Public Performance and Management Review, Vol.26(2), pp.148-168
2002
Metrics
33 Record Views
Abstract
This article analyzes the impact of outsourcing on the cost of maintenance and warehousing services in the New Zealand Army. Using a present-value framework, a costing methodology is developed that accounts for production costs, one-off costs (such as redundancy payments), and ongoing transaction costs associated with the outsourcing exercise. The authors find that expenditure levels have been reduced by between 24% and 37%. They also examine the sources of the observed savings and find that the majority of the savings have come from labor-saving technical change (23%) and labor shedding and reductions in inefficiency (58%), rather than cuts in the terms and conditions of employment (19%).
Details
- Title
- Examining the magnitude and sources of cost savings associated with outsourcing
- Creators
- Simon DombergerPaul H Jensen - Australian Graduate School of Management, Universities of Sydney and New South WalesRobin E Stonecash - Australian Graduate School of Management, Universities of Sydney and New South Wales
- Publication Details
- Public Performance and Management Review, Vol.26(2), pp.148-168
- Publisher
- M E Sharpe; Routledge
- Identifiers
- 991012877799802368
- Academic Unit
- National Centre for Flood Research; School of Business and Tourism; Management; Faculty of Business, Law and Arts
- Language
- English
- Resource Type
- Journal article