Outsourcing OUT--In-plant Back In

The company has benefited greatly from the in-plant's rebirth. Work that was previously sent outside is now being done more cost effectively by the 11-employee in-house staff. Jobs are turned around much faster, McFarland says, and customers are happier.

Blue Cross Blue Shield deserves credit for having the courage to reverse its earlier decision to outsource and do what was best for the company. Its experiences illustrate, though, how easily a company can be mislead by clever facilities management proposals.