A recent study shows that only 5% of companies that take the sub-contracting route reap high rewards and sufffer few drawbacks. For many others, the outcome is either mediocre or a total flop. Yet the steps to successful outsourcing are fairly clear. When British Airways' chief executive Bob Ayling introduced the airline's millennium restructuring plan last autumn he suggested that some of the £1 billion savings BA needs to make over the next three years to retain its competitive edge might come from a modest amount of outsourcing. Activities such as baggage handling and refuelling would be scrutinised to see whether they were being done as well by BA staff as they could be by outside contractors. If they weren't, subcontracting would be considered.
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