New book outlines ways to navigate new phase of outsourcing

By Greg Chapman

The Road to Outsourcing 4.0, a new book by CQUniversity academic Assoc Prof Reza Akbari, is aiming to guide current and future business decision-makers through the new post-COVID digital world.

Assoc Prof Akbari says ‘Outsourcing 4.0’ is “a paradigm shift in business strategy, involving the convergence of advanced digital technologies, strategic partnerships, and a holistic approach to outsourcing for enhanced innovation and competitiveness.”

“As we step into this new era, ‘Outsourcing 4.0’ isn’t just an option, it’s an opportunity to reimagine how we work, collaborate, and create value in a digital world.

“Outsourcing means hiring external organisations or individuals to handle certain tasks or services that a company might otherwise do itself, like customer support, IT services, or manufacturing.”

He explains that over time, outsourcing has evolved through several key phases or revolutions.

“Outsourcing 1.0 was all about cost-cutting, moving tasks overseas to save money, Outsourcing 2.0 focused on improving efficiency and quality by building stronger relationships with suppliers while Outsourcing 3.0 introduced more strategic partnerships, with suppliers playing a bigger role in innovation and service delivery,” he said.

“Now we’re entering the fourth stage, “Outsourcing 4.0,” which aligns with the digital transformation brought by the Fourth Industrial Revolution, or Industry 4.0. This era is marked by smart technologies like artificial intelligence (AI), automation, big data, cloud computing, and the Internet of Things (IoT).

“In this context, Outsourcing 4.0 goes beyond saving costs - it’s about driving innovation, achieving greater agility, and using digital technologies to create smarter, faster, and more collaborative partnerships between businesses and their outsourcing providers.”

He said one example of Outsourcing 4.0 was a company partnering with an AI firm to automate customer service using chatbots, collaborate with a data analytics provider to improve decision-making, or engage robotics specialists to streamline warehouse operations. These arrangements allow companies to focus on their core strengths while tapping into cutting-edge innovation.

“The benefits of Outsourcing 4.0 include faster time-to-market, access to global expertise, improved efficiency, and the ability to quickly scale operations,” he said.

“However, it also comes with challenges, such as data privacy concerns, dependence on external technologies, and the need for strong communication across different cultures and time zones. Navigating these trade-offs is key to making the most of this new era in business partnerships.”

He said his book was a comprehensive reference for students, researchers, and practitioners in outsourcing by thoroughly explaining the different types, levels, and key terms in the field, such as such as reshoring, nearshoring, friendshoring, and rightshoring.

“This book is designed for a broad audience. Business leaders, supply chain professionals, consultants, and decision-makers will find practical insights on how to prepare for and implement modern outsourcing strategies,” he said.

“Students and academics can use it as a foundational text for understanding the transformation of outsourcing in the digital era. And even curious readers or journalists interested in how technology is reshaping global business will find accessible explanations and real-world examples.”

He added the concepts of Outsourcing 4.0 in the book was relevant across many of CQU’s course disciplines. 

“At CQU, the concept of Outsourcing 4.0 aligns closely with our commitment to delivering practical, industry-relevant training,” he said.

“What makes it especially powerful is its broad relevance across all fields and disciplines. Whether you're in healthcare looking to streamline patient services with AI, in agriculture applying IoT for smarter logistics, or in education using digital platforms to manage support services, the principles of Outsourcing 4.0 apply.”

Assoc Prof Akbari had the opportunity to talk about his book at the recent 28th Australasian Shared Services and Outsourcing Week Conference.

Learn more about Assoc Prof Akbari’s The Road to Outsourcing 4.0.