Proj410 Case Study 2
Executive Summary
Student Name
August 14, 2010
PURPOSE/OBJECTIVE: The purpose of this executive summary is to outline the outsourcing / contracting process for Travel Magazine. This process will ultimately be used to determine which business processes at Travel Magazine will be outsourced and which will remain in-house. In addition, this summary will include various vendor selection considerations, such as evaluation criteria and performance measurements, for those processes that will be outsourced.
GENERAL OUTSOURCING INFORMATION: The following is some general information regarding the outsourcing of business processes: * Outsourcing promises valuable opportunities, but may also pose substantial challenges and risks * One of the top reasons for outsourcing failures is due to the mismanagement of agreements * The outsourcing market is still overall relatively immature (Krell, 2007)
OUTSOURCING DECISION MAKING PROCESS: Before deciding whether or not to outsource any of our business processes, we decided to use three evaluations, other than cost, to ensure that a sound outsourcing decision will be made. We want to ensure that our decision ultimately aligns with our overall strategy, objectives, capabilities, and plans. The three evaluations include: * Identify Strategic Drivers – Identifying the company-specific strategic drivers for the outsourcing decision of each business process is essential to keep everyone on the same page throughout the process. * Evaluate the Full Range of Options – A thorough evaluation of the full range of options includes considerations of shared service arrangements, as well as all sourcing possibilities. * Assess Internal Capabilities – Assessing the internal capabilities of each sourcing option must include an honest evaluation of systems and controls, as well as the skills necessary to transfer and effectively manage the outsourced process (Krell, 2007).
GENERAL BENEFITS OF OUTSOURCING: There are
Student Name
August 14, 2010
PURPOSE/OBJECTIVE: The purpose of this executive summary is to outline the outsourcing / contracting process for Travel Magazine. This process will ultimately be used to determine which business processes at Travel Magazine will be outsourced and which will remain in-house. In addition, this summary will include various vendor selection considerations, such as evaluation criteria and performance measurements, for those processes that will be outsourced.
GENERAL OUTSOURCING INFORMATION: The following is some general information regarding the outsourcing of business processes: * Outsourcing promises valuable opportunities, but may also pose substantial challenges and risks * One of the top reasons for outsourcing failures is due to the mismanagement of agreements * The outsourcing market is still overall relatively immature (Krell, 2007)
OUTSOURCING DECISION MAKING PROCESS: Before deciding whether or not to outsource any of our business processes, we decided to use three evaluations, other than cost, to ensure that a sound outsourcing decision will be made. We want to ensure that our decision ultimately aligns with our overall strategy, objectives, capabilities, and plans. The three evaluations include: * Identify Strategic Drivers – Identifying the company-specific strategic drivers for the outsourcing decision of each business process is essential to keep everyone on the same page throughout the process. * Evaluate the Full Range of Options – A thorough evaluation of the full range of options includes considerations of shared service arrangements, as well as all sourcing possibilities. * Assess Internal Capabilities – Assessing the internal capabilities of each sourcing option must include an honest evaluation of systems and controls, as well as the skills necessary to transfer and effectively manage the outsourced process (Krell, 2007).
GENERAL BENEFITS OF OUTSOURCING: There are
References: Krell, E. (2007). Management accounting guidelines – Outsourcing the finance and accounting functions. Retrieved from http://www.cma-alberta.com/index.cfm/ci_id/13357/la_id/1/document/1/re_id/0 New magazine startup guide. (n.d.). Retrieved August 14, 2010 from http://www.magazinepublisher.com/startup.html