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Outsourcing- MBA/ MBS- Masters level
This document discusses outsourcing and provides an overview of key considerations for outsourcing decisions. It defines outsourcing as transferring work to outside suppliers to reduce costs. Common motivations for outsourcing include cost savings, accessing new skills and technologies, and focusing internally on core functions. However, risks include hidden costs, loss of control, and quality problems with outsourced work. When deciding whether to outsource, organizations should evaluate strategic, cost, functional, and environmental factors to help ensure outsourcing provides benefits without introducing undue risks.
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Outsourcing- MBA/ MBS- Masters level
- 1. Outsourcing Decision Support: Survey By Rajkumar Shrestha Rajdhani Model College, Old Baneshwor
- 2. Content Meaning ofOutsourcing 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??? Itis 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 servicesthat are scalable, secure and efficient while improving overall service and reducing costs.
- 6. Categories of Motivationfor 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 ofOutsourcing 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 toConsider Strategic Factor Cost Factor Functional Characteristics Environmental Factor
- 12. Conclusion Organizations expectto 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 meansa 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.
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Editor's Notes
- #7 Desire to save indirect cost may also drive outsourcing Some organizations outsource to achieve better control.