By letting those with the proper expertise use it, we are not reinventing the wheel. Continental's Micallef cites reduced overhead as a prime reason for choosing to outsource. The travel company can do its tasks in half the time it would take us to locate the best airfares, book it, and confirm the reservation. Still, responding buyers recognize that there are risks involved in outsourcing any function. Among the greatest perceived risk is loss of control.
Disadvantage is the branch manager's perceived loss of control.
Many buyers agree with him. As Purchasing Magazine finds in results of the earlier survey, respondents say that the key to reducing risks lies in early involvement on the part of the corporate purchasing department. Rupert's thinking follows the same lines. If handled properly there are no disadvantages to outsourcing. A good indicator of future supplier performance, agree responding buyers, is past experience.