Bruce Nussbaum (on his new blog, congratulations Bruce!) argues that JetBlue has pushed prices down through smart operations while avoiding outsourcing. While I agree, one could say CEO Neeleman has been outsourcing in an innovative way for years, by not housing a call center and instead “homesourcing” this function to individuals’ homes. The cost advantages come from relocating the employees geographically and lowering overhead, the same as if he sent the function to India (but without the political backlash).
I don’t know how Neeleman arrived at this idea, but this is just the kind of solution I think can come from good decision design, of creatively generating further ideas in the face of convention to arrive at new and better options.