Preview

Thesis Guidline

Powerful Essays
Open Document
Open Document
2939 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Thesis Guidline
Strategic outsourcing for success
Summary results of the 2008 outsourcing report

Making an informed decision

BEST

Audit Tax Consulting Financial Advisory

. .

.

.

For Five Years Running

Outsourcing is generally recognised as a strategy for producing cost savings, however, by simply following a traditional cost-focused approach, companies may be missing opportunities to gain further competitive advantage.
Why Settle For Less? Deloitte Consulting 2008 Outsourcing Report is a global survey report that addresses this issue. The report outlines the findings of a comprehensive research effort to analyse the outsourcing approaches that companies are currently taking, and identify the leading practices, common pitfalls, and lessons learned from the outsourcing experience. The survey team polled over 300 business and IT executives representing outsourcing buyers, outsourcing vendors, and legal firms.

Treating outsourcing as a strategic objective - Are you looking at the bigger picture? In reality, successful outsourcing - and in particular, outsourcing that drives transformation and helps achieve broad strategic goals requires companies to follow a disciplined process that keeps them focused on taking the right steps and making the right decisions. In short, outsourcing initiatives succeed by design, not luck. The report explores the key dimensions of this design - five main dimensions of the outsourcing process that companies must progress through, as well as the factors that must be considered within each in order to reap the full benefits of the outsourcing. These dimensions are: 1. Rightsizing the deal 2. Building a solid foundation 3. Vendor selection now means something different 4. Striking the deal

Cost reduction is the primary factor motivating most outsourcing decisions
Did you know? Our survey found that a large percentage of the companies that implemented outsourcing reached their financial objectives and averaged a

You May Also Find These Documents Helpful

  • Better Essays

    References: Bragg, S. (2006). Outsourcing: A Guide To-- Selecting the Correct Business Unit-- Negotiating the Contract-- Maintaining Control of the Process. John Wiley & Sons. Retrieved from http://books.google.com/books?id=8bybqhKyuQYC&dq=outsourcing&source=gbs_navlinks_s…

    • 1256 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Tegan Hrad Write Up

    • 3041 Words
    • 13 Pages

    Outsourcing has seemed to acquire a rise in popularity and usage in our modern times. Outsourcing involves entering into a contract in which an in-house company process, or processes, is ultimately handed over and dealt with from a third party’s perspective. I would have to say that there are three primary, helpful factors to outsourcing, especially when it comes to the world of business. To start off, the cost of operations can be trimmed down through outsourcing. This, in turn, would assist a corporation or business in accumulating more lucrativeness. Secondly, every organization out there has the intention of delivering top-of-the-line services and goods. Outsourcing can contribute to more efficient deliveries. Specifically concerning information technology or something that would be considered to be a bit more technical, outsourcing can bolster efficiency within that particular field of a technical nature. Thus, productivity would be improved through outsourcing. Thirdly and lastly, within a set interval of time, an establishment has the ability through outsourcing to complete projects promptly. This is due to the fact that while a third party is handling a certain progression of a certain company, that individual company can now use its human capital and employees – that may originally were going to have to deal with a peculiar development stage of a certain project which has now been outsourced – in other, more beneficial ways. More labor can be put into other areas.…

    • 3041 Words
    • 13 Pages
    Powerful Essays
  • Better Essays

    Outsourcing provides an increase in operating efficiency, higher return on assets, and increase in profits. Outsourcing can provide new revenue streams with fewer risk and lower collateral investment (Gnusche, Wallace, Wilson, Smith, 2004).…

    • 2422 Words
    • 10 Pages
    Better Essays
  • Better Essays

    When considering the costs it seems as though outsourcing would save a lot of money for the firm, however, we must think strategically. Thinking strategically means the long run, and using the statistics we were given we can estimate that…

    • 1062 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Office Supply Incorporated (OSI) is a company in crisis, with challenges in its cost structure and poor IT performance. Outsourcing to Technology Infrastructure Solutions (TIS) is an opportunity to both reduce costs and complexity for the firm, but first must consider whether outsourcing is a good strategic fit for OSI. Outsourcing is known as the practice of turning over responsibility of some or all of organizations information systems to a foreign firm in order to stay competitive. Outsourcing is not new to the business world, as it dominated the manufacturing sector the past couple of decades. There are various advantages and disadvantages. Advantages include lower costs, better quality, and downsizing to focus on the core competencies, highly motivated workforce, and Information System performance problems. Disadvantages include loss of jobs and its effects, hidden costs that are often not calculated security and confidentiality issues, cultural barriers, and lack of control over the supplier. Companies need to effectively research for to be successful in an outsourcing relationship because outsourcing failures are very costly and are difficult to reverse. Outsourcing is a now a popular strategy for many organizations as the worldwide market for computing services are projected to grow yearly. In the future, new outsourcing destinations such as Eastern Europe are expected to pop up. It is essential to carefully weigh both the advantages and disadvantages before heading into an outsourcing relationship with another party.…

    • 1610 Words
    • 7 Pages
    Powerful Essays
  • Best Essays

    McCray, S., 2008, The Top 10 Problems With Outsourcing Implementations, TPI, viewed 2 November 2011,…

    • 3964 Words
    • 16 Pages
    Best Essays
  • Satisfactory Essays

    As it is stated in our book, outsourcing contributes to enhancing competitive business advantage as it allows organizations to remain focused on their core strategic activities. Instead of spending a lot of company’s money on learning, developing and producing some of the parts or whole products in the United States, organizations have a great opportunity to outsource it and concentrate on something what they are good at. They would not have to devote their time to all these elements of production, and instead they could work on their other important issues.…

    • 365 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Outsourcing is the contracting out of an internal business process to a third party organization. The term "outsourcing" became popular in the United States near the turn of the 21st century.(6) Outsourcing is big business today even for small businesses. Like every business decision we are faced with the advantages as well as the disadvantages of relocating part or all of a business. Outsourcing is one of the fastest growing trends in business as large-scale organizations have latched onto outsourcing due to the almost immediate savings and quality improvement. (1)…

    • 1004 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Ups Business Plan

    • 6591 Words
    • 27 Pages

    In today globalise fast paced economy; many companies do not have the internal resources necessary to hire the top talents needed to succeed in the marketplace. With the constant pressure to reduce costs and focus on core competencies, many companies are replying on outsource providers.…

    • 6591 Words
    • 27 Pages
    Good Essays
  • Better Essays

    Pfeffer, J. (2006, March 1). The hidden costs of outsourcing. [electronic version]. Business 2.0 Magazine.…

    • 1636 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Outsourcing has many advantages, but also faces some disadvantages. To begin, an advantage in a globalized company because of working with external parties would be the expertise the outside company brings. They specialize in the task of the operation, and therefore, that specific task is completed faster and more efficiently. Also, costs are reduced, because it eliminates the need to hire talents to complete the jobs, and without the need of the labor, costs can be condensed from the recruiting expenses. A global, cost-efficient example is when the primary business outsources production to a third party in another country, such as China, who’s labor costs are significantly cheaper than in most countries. Also, management is able to accomplish more tasks and have a more detailed focus on the entire in-house operations resulting in higher quality outputs. Outsourcing in today’s economy is an intelligent business…

    • 711 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Is Outsourcing Good

    • 693 Words
    • 3 Pages

    Outsourcing is an attractive mechanism that has been practice for long time and some companies have had positive results. However outsourcing is not a magical path that leads to a profitable and successful business all the time. There are a lot of risks inherent to this practice and any company willing to outsource should evaluate these risks responsibly.…

    • 693 Words
    • 3 Pages
    Good Essays
  • Better Essays

    ResearchPaper

    • 1463 Words
    • 5 Pages

    Nevertheless, by a company outsourcing to a third party, its business can pay attention to what it does best in order to improve its position in the marketplace (Oshri, Kotlarsky&Willcocks, 2011). Common outsourced services for example are operations in the human resource department, telephone call centers, computer services and the design of products or components. Currently, companies do not only outsource from other companies to cutcosts,…

    • 1463 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    pg. 120). Outsourcing can be defined as having activities that were formerly done inside the organization now performed by an external supplier. The most common motive and proclaimed benefit of outsourcing concerns cost reduction, due to a supplier’s superior economy of scale. Other motives are release of resources and avoidance of investments (Bengtsson & Dabhilkar, 2009). Outsourcing is often thought of something that major companies and corporations do, but even small companies outsource activities such as payroll, customer care, and information technology. Other activities that are often outsources are marketing and research and development. Examples of outsourcing activities that tend to be outsourced are street maintenance, policing, and public safety. Other types of businesses outsource activities such as cleaning and catering services. With business globalization and the advances in information and communications technology, this has led to a growing trend for businesses within specific sectors to outsource abroad. With the attraction of cheap labor and minimal overheads, this appears to have overcome any worries pertaining to control factors (Ball, 2005). I have a family member whose company has recently started the process of outsourcing to their location in India. Prior to her relocating to TX, she and her family had been…

    • 2062 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Outsourcing; what does this term mean? "Outsourcing is the practice in which companies move or contract some or all of their manufacturing or service operations to other companies that specialize in those operations of to companies in other countries…When outsourcing involves the movement or contracting of those operations to foreign countries, it is properly called offshoring or offshore outsourcing." (Outsourcing, 2005). What does this mean to you? Many American jobs are now being sent to the overseas market. Jobs from many aspects such as blue jean manufactures, shoe manufacturers, software companies, and telemarketing jobs have moved overseas (Outsourcing, 2005). Why should we not outsource? Outsourcing jobs has many disadvantages; it can cause poor customer service, it creates a complex infrastructure, it has hidden costs, and it can cause a loss of jobs in America.…

    • 1620 Words
    • 7 Pages
    Powerful Essays