Outsourcing - Common Sense or Nonsense?

Many school systems contract with a third party for essential and non-essential services. Some are quite successful, while others struggle to make the relationships work. Stories, both good and bad, abound in the industry about outsourcing. The most frequent targets for outsourcing or privatization are the support activities of the school system custodial, grounds, maintenance, transportation, and food services. These are often described as non-core activities, and therefore, thought to have less impact upon the organization's performance than so-called core activities. Although ancillary activities would seem to be likely candidates for outsourcing, Harvard professor and strategy expert, Michael Porter, believes that outsourcing is potentially risky for those activities because doing so limits modifications that might support your organization's strategy. This is especially true for those activities that contribute to or can influence the organization's strategic positioning. Out- sourcing too many activities, Porter warns, reduces your flexibility to adjust activities to create a unique value proposition.