Outsourcing in Today’s Economic Environment (original) (raw)
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Outsourcing: assessing the risks and benefits for organisations, sectors and nations
International Journal of Operations & Production Management, 2005
Purpose -This research aims to assess the risks and benefits of outsourcing for organisations, sectors and nations. The literature on outsourcing contains little evidence of research on holistic issues of its impact at systems levels beyond the firm, notably sectors and nations. Design/methodology/approach -A Delphi study with senior strategists from private and public sectors captured perspectives and specific observations on benefits and risks of outsourcing. Emergent issues on outsourcing policy, strategy and decision-making processes were synthesised into a framework for analysing factors associated with outsourcing. Findings -The findings suggest that a more holistic view of outsourcing is needed, linking local, organisational issues with sector and national level actions and outcomes. In this way, aggregate risks and benefits can be assessed at different systems levels.
The Outsourcing Debate: Theories and Findings
Journal of Management & Organization, 2005
The linkage scheme encourages researchers to form industry partnerships for the research process, in order to develop research outcomes that are of industry relevance. It is stressed in the ARC guidelines that the research should not be a consultancy. One of the big-five industry companies, Transfield, was our industry partner. We have already acknowledged the support of the company and its executives. We should stress, however, that our research was conducted independently of the company and was in no way anything other than a dedicated research project. The authors would like to thank Transfield and Boston Consulting Group for their contribution to this study. They also would like to acknowledge the assistance of Rachael Weiss in helping to design the study and Rosie Stilin, for research assistance, as well as the participants in both the quantitative and qualitative study, and the helpful comments of Fons Naus, Robert Roe, John Sillince, Carl Rhodes, Tyrone Pitsis, Martin Kornberger and Robert van Krieken on earlier drafts.
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International journal of multidisciplinary and current research, 2016
Outsourcing has become very sophisticated and technology intensive. This is attributed to the demand for enhanced productivity and the maintenance of standards. It cannot be emphasised enough that skilled personnel is a key requirement when conducting outsourcing. This article investigates The Dynamics and Complexity of Outsourcing through the use of secondary method of data collection. The key findings suggest that the increase in outsourcing of core and non-core activities creates business opportunities. The successful management of outsourcing relationships, the adoption of Total Quality Management (TQM) and the skillful compilation of outsourcing contracts are considered to be of paramount importance in attaining successful outsourcing outcomes. Outsourcing creates jobs with minimal remuneration for vendor companies to attain higher profits and job loss of permanent personnel which is a complex issue to address. Union leaders globally have viewed outsourcing as unfavourable for their members. The challenge however lies in identifying suitable formulae to compensate retrenched workers and the compilation of favourable remuneration packages for outsourcing personnel. In conclusion, supply chains open markets globally allowing free trade to take place which consequently results in increased economic growth and development.
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Outsourcing became a relatively well-known term in the last three decades both in the academic and the business world. Contrarily or because of it there are so many different terms around the outsourcing model that many times it could confuse even the experts of the area. The aim of this research to collect all important outsourcing terms, organize them, create a framework or grouping them with different viewpoints. The framework could help to understand the similarities and differences about the different classes.
Outsourcing — The benefits and the risks
Human Resource Management Review, 2006
Outsourcing is promoted as one of the most powerful trends in human resources management. The rationale for outsourcing HR functions includes financial savings, an increased ability to focus on strategic issues, access to technology and specialized expertise, and an ability to demand measurable and improved service levels. However, there are some indications that these benefits are not being realized. Furthermore, there may be a serious impact on employee morale and a risk of transferring expertise and insider knowledge to vendors. Managing the outsourcing arrangement is critical.
This report aims at explaining how and why outsourcing is used in the public sector. The report will also explain the concept and application of outsourcing. It will explain outsourcing with the private sector and give application examples of outsourcing of public sector in relation to the private sector. The report will cover in detail the factors that lead to outsourcing, the merits of outsourcing and the potential risks that may be brought about by outsourcing. The report will explain the scenarios that may lead to an institution to transfer a job function to an external service provided. The report will explain the risks that are involved in outsourcing. Also, it will cover how outsourcing affects accountability of the public sector and also whether or not I would recommend for outsourcing.
Outsourcing by Private and Public Organisations: How much Could Public Bodies Learn?
ACTA VŠFS, 2013
Outsourcing is already for longer period used in private sector as a tool of rationalization of internal processes. As the result of New Public Management changes it was started to be implemented also in public organizations. The paper starts with brief introduction of the concept of outsourcing, both in relation to private and public sector practices. Its core parts are devoted to analysis of experience with outsourcing of internal services in private and public organizations in the Czech Republic and Slovakia. Some interesting conclusions are derived from the research. First, outsourcing is relatively frequently used by private firms in the Czech Republic. Second, we may argue that the “quality” of implementation of outsourcing in the private sector in the Czech Republic is a bit limited. Results from our analysis support general expectations that in conditions where the private sector is not able to deal with outsourcing perfectly (and risk of corruption is relatively high), the ...
OUTSOURCING AS A MANAGEMENT STRATEGY
Abstract As a result of the disappearance of the borders as well, outsourcing has become a modern management technique , which is used quite commonly by businesses wanting to increase productivity .Starting in the 1980s ,gaining momentum in the 1990s applications of subcontracting initially has a cost reducing function,but in the course of time ,with the contraction request and focus of the core competency of the companies, the use of outsourcing has become a management tool that provides competitive advantage.Nowadays businesses focus on core competencies that provide themselves advantage of competition, making goal-oriented collaborations rather than expanding corporeally.They aim at increasing quality lowering costs and thus gaining business profibility, handing over activities that directly have nothing to do with their area of specialization to outer businesses specialized in this area.This study , as a management strategy, aims at investigating the causes of outsourcing use in businesses and benefits and drawbacks brought on by the use of outsourcing. The study is comprised of four sections and the causes of outsourcing use are explained under ten sub-headings in the second chapter after introduction.The third section deals with benefits and losses that the use of outsourcing secures for businesses and finally the study comes to an end with the conclusion. Keywords: Outsourcing, Management Strategy, Core competency
Business outcomes of outsourcing: lessons from management research
Outsourcing has been broadly recognized as an important strategic choice made by companies and other organizations to achieve a wide variety of goals. Many studies have focused on the economic and fi nancial impacts and on the relationship between outsourcers and outsourcees. This chapter offers a comprehensive overview of actual outsourcing outcomes found in management research, including impacts on human capital. Analysis of the evidence on outsourcing in the OECD STAN database (OECD 2011: 1970-2009) shows that both the number of transactions (deals) and their scope (activities involved) have increased constantly during the last 20 years. Over time, outsourcing popularity peaks have coincided with certain trends, such as business process reengineering, strategic focusing on core business, outsourcing/offshoring strategies, shared services and corporate downsizing (e.g. Brunetta and Peruffo 2014). Furthermore, as recent research shows, companies are expeditiously outsourcing non-core business processes and functions in order to maximize their profi ts. Business profi ts can be increased through reducing costs and/or via acquiring external sources of strategic differentiation (e.g. higher-quality raw materials or distinctive expertise/competences able to improve the overall quality of products and services, enabling companies to sell them at higher prices) (De Fontenay and Gans 2008; Gospel and Sako 2010; Angeli and Grimaldi 2010; Doellgast and Gospel 2012; Giustiniano et al. 2014).