Transitioning from a domestic to a global economy has forced the U.S. and its many industries into a state of hypercompetition. Finding solutions to deal with the increasing pressures toward change drives business executives to look outside their company and even their borders for new methods and options for doing business.
Outsourcing became popular as a natural part of this process, and its evolution moved toward a new method, Laborgistics® in 2004. "Laborgistics®: A New Strategy for Management," by Dominique Roux, outlines the historical development of the economy from agrarian culture to present day. Societal and political changes are in progress that accompany this change in business practices.
Roux, professor at the University of Paris (Dauphine) and Jack R. Wentworth, faculty member and former dean at Indiana University's Kelley School of Business who contributed the book's foreword, joined forces to research the new global outsourcing practices of International Outsourcing Services. As the pioneer of Laborgistics, IOS evolved the concept of simple outsourcing to a level that encompasses much more than cost-cutting. Laborgistics does reduce costs, but is also designed to enhance revenue, open new market opportunities, save jobs and create new, skilled jobs. It's a strategic, goal-oriented decision, not survival-focused with a defensive posture like basic outsourcing.
Roux's textbook blends theory and practical application to explain the phenomenon of globalization and how and why it is happening and why it will continue as a popular business solution for supply chain management. Laborgistics as an evolved form of outsourcing is a long-term solution to providing products and services to a global market with a win-win result. The author explains that there cannot be a "head-in-the-sand" mentality toward this natural change, but rather a deeper understanding of what it means and how it positively affects businesses and jobs.
"Calling upon outside agencies is not only a legitimate practice, it is becoming indispensable to any company wishing to retain its niche in the market," said Roux.
In the forefront of American minds is job stability. Outsourcing provides jobs for workers in other countries who might otherwise not find employment, while allowing for more specialized training and skill-specific employment onshore. It allows companies to focus on research and development of products and services, and training of staff to coordinate the offshore activities and management roles emerging through the transition of fulfillment, assembly, packaging, kitting and similar jobs to other countries that can provide a more economical workforce.
With Laborgistics, the result is seamless integration of systems and people. Strategic procurement becomes more significant and requires tighter integration with strategic marketing and other elements of business operations in a flexible, responsive environment. Applying the right technology and quality control, a secure, effective process generates satisfaction on both sides for the outsourcing services provider and customer.
This book will be available in French and English versions in spring 2004.







