Video"Only about 3 percent of companies are really good at managing contractors and other nonstaff resources," says Walsh. One big problem is cost: the use of contract workers may push a project's cost up by 40 percent. But Walsh says that the sort of penny-pinching that prompts companies to cancel or delay projects exacts a price in the form of lost opportunities.
But if companies improve the way they manage external service providers, they can thrive in the new world order. "How often have you seen a contractor sit around for two weeks waiting for a phone, a PC, or a pass card?" asks Walsh. Better in-house management of such resources can lower costs and boost productivity. "The key is not to create a center of expertise focused on a function, such as E-business," says Walsh, "but one focused on human capital. That will have the most positive impact on an organization's structure." —S.L.
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