This quarter’s post is from renowned business author Peter Drucker, from his book, Managing in a Time of Great Change.
(New York: Talley/Dutton, 1995).
Q. How will the manager operate in an environment free of old hierarchy?
A. Would you believe that you’re going to work permanently with people who work for you but are not your employees? Increasingly, for instance, you outsource when possible. It is predictable, then, that ten years from now a company will outsource all work that does not have a career ladder up to senior management. To get productivity, you have to outsource activities that have their own senior management. Believe me, the trend toward outsourcing has very little to do with economizing and a great deal to do with quality….
Relations between organizations are changing just as fast as relations between organizations and the people who work for them. The most visible is “outsourcing,” in which a company, a hospital or a government agency turns over an entire activity to an independent firm that specializes in that kind of work….In another ten or fifteen years, organizations may have outsourced all work that is “support”….This will mean that in many organizations a majority of people working might not be employees of that organization but employees of an outsourcing contractor.