Outsourcing- MBA/ MBS- Masters level for Pokhara University

1. Outsourcing Decision
Support: Survey
 By
 Rajkumar Shrestha
 Rajdhani Model
College, Old Baneshwor

2. Content
 Meaning of Outsourcing and Why Outsource
 Outsource Decision Framework
 Categories of motivation for Outsourcing
 Areas of outsourcing
 Advantages of Outsourcing
 Potential Risks Of Outsourcing
 Potential Factors of Outsourcing
 Lesson Learn
 Conclusion

3. What is Outsource???
It is a practice used by different
organizations to reduce cots by
transferring portions of work to outside
suppliers rather than completing it
internally. It is effective cost- saving
strategy when it used properly.

4. Why Outsource?
Provide services that are
scalable, secure and efficient
while improving overall service
and reducing costs.

6. Categories of Motivation for outsourcing
 Cost Driven Outsourcing
Desire to save indirect cost may also drive outsourcing
Some organizations outsource to achieve better control.
 Strategy-driven Outsourcing
This results in a so-called “Virtual organization” where functions are
outsourced to multiple vendors under one agreement. Together the
suppliers perform an integrate set of services.
 Politically-driven Outsourcing
There is different purpose of organization. For Public & Private
Organization.

7. Areas of Outsourcing
 Call Centers
 Finance & Accounting Outsourcing
 Procurement Outsourcing
 Textiles
 Manufacturing
 Human Resource Management

8. Advantages of Outsourcing
 Cost Savings and Reduced Capital Expenditure
 Increased Speed & Productivity
 Access to latest technology/ Infrastructure
 Access to Skills and talent
 Increase focus on core function
 Copy Competitors & Reduce Politic pressures
 Better Management

9. Potential Risks of Outsourcing
 Hidden Cost and Less Flexibility
 Poor Contract or poor selection of Partner
 Threat to Security & Confidentiality
 Loss of managerial control
 Quality problems
 Lack of customer focus
 Lose talent inside within the company

10. Potential Factors to Consider
Strategic Factor
Cost Factor
Functional Characteristics
Environmental Factor

12. Conclusion
 Organizations expect to achieve many different
benefits through successful outsourcing, although
there are significant risks.
 Outsourcing is often undertaken to provide
enterprises a competitive advantage by
delegating business process to external agencies
and realizing the benefits of low labor, better
quality and improved innovation.

13. Lesson learn
Outsourcing means a process of
stimulating people to action to
accomplished desired goal. If we use it
properly then it will save the cost as
well as reduced Capital Expenditure
with Speed & Productivity by using
latest technology.

14. Any Queries?

15. Thank You!!!