| Foreword | 9 |
| Introduction | 13 |
| Part 1 | There Is No Alternative | 17 |
| 1 | Embracing TINA | 19 |
| Why Outsourcing Will Change Your Business | |
| 2 | The Alchemist's Dream | 23 |
| Extracting Wealth from Scrap | |
| What Exactly Is Outsourcing? | |
| Misconception of Losing Control | |
| Outsourcing Is Not Contracting | |
| The Nature of the Relationship | |
| Why Outsource? | |
| What Processes Are Outsourced? | |
| Cutting to the Core | |
| Outsourcing as a Solution | |
| 3 | The Trail to Outsourcing | 51 |
| Pioneers Who Traveled the Trail | |
| Globalization | |
| New Worlds to Conquer | |
| 4 | The Components of Value | 63 |
| Leverage--the Crucial Component | |
| The Buyer's Perspective in Recognizing Value | |
| How Can a Buyer Apply Leverage? | |
| Part 2 | Principles in Action | 85 |
| 5 | Finding the Right Formula | 87 |
| Pressure on the Container | |
| Five Steps to Eliminate Pressure | |
| Step 1 | Defining the Elements (Scope) | |
| Step 2 | Agreeing on an Appropriate Price | |
| Step 3 | Providing for Flexibility | |
| Step 4 | Making the Contract Short Term and Flexible | |
| Step 5 | Aligning Motivations and Objectives | |
| Additional Contributions | |
| 6 | Make Sure It's Gold | 123 |
| How to Establish Service Levels | |
| Establishing Metrics | |
| What Buyers Should Measure | |
| Challenges of Measuring | |
| Effects of Diagnostic and Business-Oriented Metrics | |
| Effects of Proactive and Forensic Metrics | |
| The Dangers and Problems in Metrics | |
| Automating the Metrics | |
| Continual Improvement | |
| 7 | The Price of Gold | 149 |
| Pricing Is More Than Establishing a Cost | |
| Two Common Practices to Avoid | |
| What Is a Fair Price? | |
| Factors to Consider in Establishing Pricing | |
| Price by Measurable Results | |
| Adjusting Price Through Negotiations | |
| Adjusting Price Through Benchmarking | |
| Adjusting Price for Cost of Living | |
| Paying for Additional Contributions | |
| Contingency (Incentive-Based) Pricing | |
| The Use of Co-sourcing | |
| Issues Inherent in Contingency Pricing and Co-sourcing | |
| 8 | Gold Purifiers and Inhibitors | 185 |
| A Supplier's Perquisites for Success | |
| A Buyer's Perquisites for Success | |
| Conflict Resolution | |
| Nurturing the Relationship | |
| 9 | From the Lab to the Shop Floor | 203 |
| Choosing the Best Approach to an Alliance | |
| Buyer-Supplier Alliances | |
| Contractual Structure of the Relationship | |
| Example of a Master Procurement Vehicle | |
| 10 | The Philosopher's Stone | 229 |
| Appendices on Additional Resources | 231 |