Transfer risk by outsourcinginternal operations to highly qualified and specialized third parties with a vested and monetary interest in getting it right the first time.
Advisory boards are a growing trend for large and small businesses who want to tap into the expertise and thought leadership of professionals in specific industries or areas of focus without hiring internal headcount or outsourcing consultants.
One municipality that Tadelis considered in his research believed that it could cut costs by eliminating its two internal IT positions and outsourcing their work to local technology providers.
It is dominated by American and British companies outsourcing their internal operations to third parties in places such as Ireland, Canada and South Africa, but most of all in India.
Among the many things that surprised Michael Jordan when he arrived at troubled tech giant EDS last year was a deep and puzzling irony: EDS invented the business of outsourcing, overhauling other firms' computer systems and running them far more efficiently, yet its own internal network was a haphazard and disjointed mess.