Chapter 10.pptx - Chapter 10 Outsourcing Challenges and...

Info icon This preview shows pages 1–6. Sign up to view the full content.

Chapter 10 Outsourcing: Challenges and Opportunities
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Overview Outsourcing is an excellent method for organizations to use to: discontinue activities that are not core competency shifting from a fixed-cost to variable-cost model reduces unit cost of performance minimizes capital acquisition and ownership costs
Image of page 2
How does outsourcing contracting vary from traditional services contracting? Additional factors such as: IP ownership Creative design Data ownership Traditional services contracting Individual task or range of tasks Completed in a specific time frame Supplement workforce/perform specialized task Outsourcing contracting Group of tasks or functions historically performed in-house and moves it to a Long Term services provider Reduce workforce, Knowledge drain => harder to ‘insource’ later
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Aspects critical to effective outsourcing Develop a comprehensive statement of work Establish baseline metrics for the services Develop SLA’s & KPI’s for all contractors Establish an effective costing methodology Separation of responsibilities Process mapping Process for dispute/conflict resolution Consider exit and transition strategy Read p. 192-194
Image of page 4
What is a Service Level Agreement?
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 6
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '15
  • Shell, Shell Deer Park, Deer Park Current

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern