Outsourcing/Rightsizing for the 1990s

The terms “outsourcing” and “rightsizing”, along with a third term, “downsizing”, have different meanings to different people. Looks into these as alternatives for managers in rejuvenating organizations. Outsourcing to many managers means the loss of control of an internal operation. It is not as foreboding as downsizing which, at first impression, has the connotation that jobs are on the line or that expenses must be reduced. Rightsizing may imply a shrinkage in managerial levels to arrive at longer term “fat free” improvements. In a fast‐moving environment traditional methods and organizational forms are too cumbersome, and inflexible to bring about creative organizational change. More radical steps are often needed to capitalize on leaner and more innovative measures which, at the same time, reduce non‐productive “baggage” which has developed over time in most organizations.