Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Management : Outsourcing - Case Study Example

Comments (0) Cite this document
Outsourcing is a way to manage business processes more efficiently. The success of a company depends upon its ability to respond promptly to changing market conditions (Potk'ny, 2008). Outsourcing can be either onshoring or offshoring where 'offshoring' refers to relocation of jobs and production to a foreign country (Garner, 2004)…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.9% of users find it useful
Management study: Outsourcing
Read TextPreview

Extract of sample "Management : Outsourcing"

Download file to see previous pages The decision to outsource or insource could allow an organization to free up resources and to focus on core issues that could fetch higher returns (Kav'i' & Tav'ar, 2008).
Williamson's transaction cost theory in outsourcing suggests that markets are applied in low-cost transactional cost while hierarchies are applied in high transaction situations (Kav'i' & Tav'ar, 2008). Markets here refer to outsourcing or purchase from an external source while hierarchies refer to insourcing or making within the company. According to the resource based view, companies typically outsource no-core activities thereby conserving scare resources. The economic theory of comparative advantage provides the motivation for international outsourcing (Schniederjans & Zuckweiler, 2004).
Outsourcing excess manufacturing demand to smaller domestic or international firms is a strategic approach to balance the total production needs with the customer demand. A same form may keep functions such as production in-house but outsource other functions such as the use of lawyers, accountants and consultants. The decision is typically "buy-or-make" decision on products, processes and facilities.
The decision to outsource should typically be a five-stage evaluation process - identifying and weighting performance categories; analysing technical capabilities; comparing internal and external capabilities; analysing supplier organisational capabilities; and determining total acquisition costs (Conklin, 2005). This is applicable in all sectors - manufacturing or the service industry.
3. Benefits and risks in outsourcing
Outsourcing has several benefits applicable to all organizations although certain decisions have to be taken based on the industry and the business environment. Outsourcing frees an organization from the non-core functions which take up a lot of time (Potk'ny, 2008). Choosing the right method of outsourcing and the right partner can strengthen the company's key abilities and give it a competitive advantage. The organization can conserve resources as it does not need to invest in training and retaining specialized experts. Any changes in technology and skills of human resources that become necessary are provided by the service provider and the company need not invest in such areas every now and then. Apart from enabling focus on core activities, outsourcing reduced operating costs as well as the overhead costs. Loh and Venkatraman (1995) emphasize that the control issue is the major inhibitor in outsourcing decisions. In shifting the locus of competencies to external service providers, the company hands over the decisions rights over the assets to the vendors, who might not share the same goals and objectives as the client organization. There is also a possibility of deliberate opportunistic behavior by the vendors as they may indulge in self-serving behavior before and after the contract.
Outsourcing can improve a company's benchmarking and target setting but all depends upon the inter-company processes and structure that foster collaboration and trust (Conklin, 2005). Due diligence in outsourcing decisions is not enough as has been proved by the scandal of Satyam Computer Services, an Indian outsourcing firm (Pettibone, 2009). This should be an eye opener for the firms ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Management study: Outsourcing Case Study Example | Topics and Well Written Essays - 3000 words”, n.d.)
Management study: Outsourcing Case Study Example | Topics and Well Written Essays - 3000 words. Retrieved from
(Management Study: Outsourcing Case Study Example | Topics and Well Written Essays - 3000 Words)
Management Study: Outsourcing Case Study Example | Topics and Well Written Essays - 3000 Words.
“Management Study: Outsourcing Case Study Example | Topics and Well Written Essays - 3000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Management study: Outsourcing

Outsourcing And Supply Chain Management

.... Another advantage of outsourcing is that it creates flexibility for an enterprise. The cost savings achieve through outsourcing can be a critical success factor that keeps a particular company in business. In the auto industry companies often outsourced the production of auto parts. My sister was a victim of outsourcing because her company shut down operations in America to move to Asia. (2011). Outsourcing. Retrieved February 13, 2011 from 2. The supply chain management of an organization is a very important factor that can make or break a company. Supply chain management is the combination of art and science that goes into improving the way your company finds the raw components...
4 Pages(1000 words)Essay

Contemporary Management Outsourcing

...?Contemporary Management Article on outsourcing In a recent BBC article, the issue of outsourcing was highlighted. The plan of three police forces tooutsource services to private contractors fell through when the police and crime commissioners rejected the plan (BBC News, 2013). The Bedfordshire, Cambridgeshire, and Hertfordshire forces were the supposed beneficiaries of the plan if it was approved; and they were likely to benefit by contracting G4S to ensure joint IT and human resources. The decision was however made for the forces to resolve their work issues through international collaboration (BBC News, 2013). The G4S indicated that the outsourcing would have saved the three forces about 100 million pounds over the span of 10 years...
8 Pages(2000 words)Assignment

Supply Chain Management and Outsourcing

..., future research needs to develop a metrics for assessing the benefits and costs of outsourcing in supply chain. This study topic and discussion will have a positive influence in the field of supply chain management, and this might be experienced in future. The study has increased the knowledge on supply chain and outsourcing in supply chain. From the discussion, a company manager might learn the importance of outsourcing, and reasons why companies are encouraged to outsource in their supply chain. At the same time, one will be made aware that outsourcing in supply chain comes with various risks, which can however, be managed. In future therefore, company management that is concerned with supply chain, and are interested in outsourcing...
9 Pages(2250 words)Essay

Outsourcing in Strategic Management Accounting

... are suffering because of poor quality. Policy solutions to outsourcing are also being my criticism. One solution often offered is retraining of domestic workers to new jobs. However, some of these workers are already highly educated and already possess a bachelor’s and master’s degree. Retraining to their current level in another field may not be an option due to years of study and cost of education involved. There is also little incentive given that the jobs in their new field could also be outsourced as well. The risk factor is the biggest concern in outsourcing. A complete assessment of possible risks will give us an upper hand in being aware of our risks and studying them to ensure that they are managed well. The process of making...
13 Pages(3250 words)Essay

Bussiness Management and Outsourcing

...Business Management Introduction Outsourcing is one of the main strategic approaches used by modern organizations to reduce production and operating costs. The UK economy depends upon international labor supply and international business relations. Taking advantage of technology transfer opportunities, their rapid industrialization has been aided by the introduction of advanced (but standardized) technologies that result in labor costs substantially below those in similar industries in the developed economies. This in itself would contribute to the surge in exports to the developed economies. There are several problems with outsourcing faced by the state and companies. Recent years, a large number of engineers have been sent abroad...
12 Pages(3000 words)Essay


... IS Paradigm? Journal of Global Information Technology Management, Vol. 8 No. 2 pp. 1-4 In this editorial, the author affirms that low and middle level jobs would continue to migrate but this will open up new areas for employment which requires extensive training and education to prepare them for reemployment. These new areas would be highly specialized areas like risk assessment and US being innovation leaders, would easily be able to take the challenge. MSN Money (2004), Outsourcing actually creates U.S. jobs, study finds, 04 April 2007 Authors refer to a study by the Information Technology Association of America (ITAA) and contend that even though people have fears...
9 Pages(2250 words)Essay

Outsourcing Management

... Outsourcing Management Introduction The purpose of this study is to examine if IT Outsourcing Management acts as a strategic tool for Starbucks Cafe or not. Study encompasses a brief overview of its historic background highlighting the significance of "Kodak Effect". (Bryson, 185) Then, there will be a brief review of various types of Outsourcing Management Strategies used by the cafe like Selective Outsourcing, Value Added Outsourcing, and Cooperative Outsourcing and after that there is a brief description of the advantages and disadvantages of Outsourcing Management for the cafe. A general idea on its impacts at the Macro and Micro Level is also given in the discussion. History Currently Information Systems (IS) Outsourcing Management...
15 Pages(3750 words)Essay


...Outsourcing Boeing has developed a powerful within the aviation industry within its 96 years in existence. Recently, the firm has focused on building one of the biggest and most costly projects in its history; the Boeing 787 Dreamliner. As a means to remain competitive within a climate of global change, Boeing has almost redefined the process of outsourcing; choosing to have the airplane built in sections domestically as well as internationally and then assembled at a central location within Charleston, South Carolina (Hubbard 1). Apart from the engines themselves, nearly 60% of the aircraft is built overseas with only final fabrication and assembly taking place within the United States. The wings are built in Japan, the seat upholstery...
1 Pages(250 words)Essay


The location comes into it when the third party operates from beyond the borders making it off shore outsource process. The process of off shore on the other hand pertains to relatively large scale hand over of resources and other functions.
There are number of salient features to this concept and these include restoring function, crisis management, economic utility, broader options and variety of field selection. The potential downsides to it include more hassle of handling the global operations, ensuring for overall safety of operations and other potential embezzlements and privacy breaches.
The given concepts do bring along trends of cross cultural interaction as well. India in this regard serves as a hub towards the gr...
3 Pages(750 words)Essay

Knowledge Management in Outsourcing

...Knowledge Management in Outsourcing LIST OF FIGURES PG NO 1 Captive Facilities Call Center 25 2 Third Party Call Center 25 3 B-O-T Model Call Center 26 4 Component units of Call Center 27 5 Knowledge Management Model 30 6 Questionnaire 37 7 Questionnaire-Results 38 8 Pie-Chart 1 39 9 Pie-Chart 2 40 10 Pie Chart 3 42 11 Pie Chart 4 43 12 Pie Chart 5 43 13 Pie Chart 6 44 14 Pie Chart 7 45 15 Pie Chart 8 46 16 Pie Chart 9 47 TABLE OF CONTENTS PG No: Abstract 5 CHAPTER ONE: INTRODUCTION Introduction 7 Research Question 9 Scope of this study 9 Limitations of this research effort 9 CHAPTER TWO: LITERATURE REVIEW Outsourcing 11...
50 Pages(12500 words)Research Paper

Implementing Schedule of Time Management

...Running head: PHASE 5 INDIVIDUAL PROJECT PHASE 5: Individual Project Affiliation October 2008 How often have you heard it said that planning is waste of time? No sooner is the plan completed than someone comes along to change it. These same naysayers would also argue that the plan, once completed is disregarded and merely put on the shelf so the team can get down to doing some real work. To people management, we mean the planning activity that involves deciding on the types of people in form of resources that are required to fulfill the requirements of the project. In other words the types of skills and number of workers we need to complete the project (kwysocki, 1997). Whenever we talk about the methods involved in the project management...
6 Pages(1500 words)Coursework

Change Management

... of these, management must go out of their way to deal with organizational resistance to change because even the most carefully laid out or well intentioned changes can still meet resistance. Subsequently, an organisation’s ability to gain benefits from their change efforts is largely affected by their ability to create environments that encourage support and acceptance from other members of the organization. (Coetsee, 2003) Definition and application of resistance to change Some authors assert that resistance to change my be defined as behaviour that human beings depict when they are attempting to protect themselves from the effects of change; these effects may be real or they may be imagined depending on the situation under consideration...
10 Pages(2500 words)Coursework

A Comparative Study of the Origins of Ethical Thoughts

Do you know what they dug out? -- Wires! It proves that two thousand five hundred years ago, in the age of Pericles, the Greeks had telephones”. The Jew laughingly retorted: “Recently they were digging in Jerusalem. They dug out nothing. This proves that three thousand years ago when Solomon was the king of Judea, the Jews had the principle of wireless!”

ETHICS AND DIVERSE DEFENITIONS: One of the Dilemmas of the civilized human society was the fight between the soul and the flesh or rather the body and desires. The question is how to divert human energy in an intelligent, controlled way? Searching answers to this question one lands in the premise of ethics, personal as well as social. Ethics (English)...
11 Pages(2750 words)Case Study

Diversity Management in Organisations

...Managing Diversity in Workforce Contents Introduction 2. Diversity Management: Challenges and Benefits 2 3. Managing Diversity 3 3 Significance of Involvement culture 3 3.2 Impact of Organizational Ethnicity on diversity 4 4. Best Practices to Manage Diversity 4 5. Conclusion 5 6. Bibliography 6 1. Introduction “Diversity” characterizes the massive amount of individual divergences that subsists amid persons. Workforce diversity is a gathering of the resemblances and discrepancies between workers in such sorts as “age, sexual category, cultural inheritance, physical capability and race.” (POLLITT, David, 2006) As of today, diversity in the place of work is widely acknowledged as an advantage that contributes to a business institution’s base...
6 Pages(1500 words)Case Study

The Management, Leadership and Teamwork Competencies Required by a Small Business Owner

On the other hand organizational leadership is defined as the ability based on the specific skill of an individual to lead his/her subordinates in a manner that pre-planned organizational goals could be achieved within the defined time-frame.

According to Burns (1978) and Bass (1985), transformational leadership has a set of category constructs such as values, morals, farsightedness, long term goals, principles, acute awareness about the dividing line between causes and symptoms, mission statements, strategic perspectives, and human resources. Similarly, they identify a set of category constructs in the transactional leadership also. For instance concentration on the task at hand, short term goals and tactics, confusion co...
6 Pages(1500 words)Coursework

Information Security Management

Security is a group of activities that include the policies, measures, and actions which are utilized to stop unlawful access or alteration, theft, and physical damage to information or computer. Security can be supported by an assortment of techniques and tools to safeguard computer hardware, software communications networks, and data (Laudon & Laudon, 1999, p. 502). In the modern age of information technology, there are many threats happened for organizational information. We need a security model that has the ability to manage and secure our information reserves. Technical administrative safety /security measures like security plans, actions and techniques are the main practices for the organizational information security m...
10 Pages(2500 words)Research Paper

People, Organisations and Management

Organizations and their management styles have evolved to a great extent in the service and manufacturing industry over the last century, and so have been the concepts of management and its functions. These evolutions can be traced to significant developments brought about by the industrial revolution, scientific management principles such as Taylorism and Fordism, transition of feudalistic to capitalistic approach and others in different sectors of manufacturing industries. However, the beginning of the industrial revolution was characterized by a rigid hierarchical bureaucratic way of organizing business enterprises, a style prevalent even today but only in military service organizations. Nevertheless, the manufacturing and busi...
8 Pages(2000 words)Assignment

Self Assessment: Conflict Management Style

...Please indicate Self Assessment: Conflict Management Style The assessment on conflict management that I took suggests that I am the type of person who tends to cooperate and work with people to achieve a desirable outcome. It suggests that when I am faced with a conflicting situation, although I listen and consider other viewpoints included in the discussion, I carefully evaluate and analyse every detail in accordance to my own. It depicts that I welcome other ideas or arguments but not easily swayed by them for I tend to make my point be heard and accepted as well, creating a really interesting discussion that in turn promotes a win-win situation. Furthermore, the assessment also indicated that second to collaborating attitude, I also...
7 Pages(1750 words)Essay

Management Theory and Practice in the Early Childhood Education Industry

...Management Theory and Practice in the early childhood education industry This Report applies management theory into practice in the early childhood industry, especially in the context of women leaders. Management issues play a significant role in the academic sector, because early childhood professionals need higher levels of motivation in order to avoid burnout . As pointed out in a study by Osgood and Halsall (2007) where they carried out research to examine the position of women in leadership or management positions, a “glass ceiling” exists for women in the academic setting, which could significantly impair motivation. Since many of the individuals employed in the early education sector are women, addressing this issue is even more...
6 Pages(1500 words)Coursework

Conflict Between Researh and Ethics on the Tuskegee Syphilis Study

... this would also boost the participation rates and thus help to achieve the desired research results (Sugarman, 2002). The management of an institution has the sole responsibility of setting up the IRB and to make sure that no kind of prejudice is shown by the members of the IRB towards a particular study due to financial or other pressures as this would result in overlooking certain aspects of the study which may prove fatal as the study progresses. They also have to ensure that incidences such as death should be immediately reported to the federal agencies involved in the funding (The Ethics of Social Research, n.d). It is also the responsibility of the management to ensure the well-being of the IRB members and that they are being...
7 Pages(1750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Management study: Outsourcing for FREE!

Contact Us