Scribd
Upload
13 views

OUTSOURCING

Uploaded by

rpgervacio0203
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
13 views

OUTSOURCING

Uploaded by

rpgervacio0203
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 16

MBA 202 | By: KIMBERLY C.

GADON
Combining Strategic
Outsourcing and Project Management

• Organizations are continuously


examining ways to gain a
competitive edge and companies in
every industry have begun to take.

• To effectively compete in such a market, organizations must


provide top-notch products, processes and services; remain
focused; and have the ability to offer competitive pricing
and quick response services.
Combining Strategic
Outsourcing and Project Management

One increasing popular option for businesses striving to


compete in an ever-changing marketplace is
OUTSOURCING one or more non-core activities.
• It simply allows organizations to be
state of the art in all areas by
partnering with professionals in
non-core functions.
• Recognized as a powerful
management tool not only to reduce
operating cost but also provide
strategic benefits to organizations.
OBJECTIVES

Concept of Outsourcing

Reasons for companies to


outsource

Framework of integrating Project


Management into the Outsourcing
Process
CONCEPT OF
OUTSOURCING

This is the strategic use of outside resources to


perform activities traditionally handled by internal
staff and resources. Outsourcing is a management
strategy by which an organization outsources major,
non-core functions to specialized, efficient service
providers
CONCEPT OF OUTSOURCING

Companies have always hired special


contractors for particular types of work, or
to level-off peaks and valleys in their
workload. They have always
partnered-formed long-term relationships
with firms whose capabilities complement
their own; companies have always
contracted for shared access to resources
that were beyond their individual
reach—whether it be buildings, technology
or people.
To run a business, you need to be
rational and practical. Lawyers,
financiers, managers aim to optimize
expenses and reduce the time of
product and service creation.

Outsourcing is the
best way to do it.

OUTER-SOURCE-USING
1. Accounting Services
2. Legal Services
3. Logistics Outsourcing
4. Advertising
5. Cleaning Services
For OUTSOURCING
• Access to world-class capabilities
• Free resources for other purposes
• Improve company focus
• Make capital funds available
• Reduce operating costs
• Reduce risk
• Support resources not available
internally.
Example:

Online store and the Ninja Van Logistics tie up to provide time-definite
delivery with Lazada program.
OUTSOURCING PROCESS MODEL
This model uses the Planning and Managing Project process as
a guide for its implementation. The model has three phases.

Define and Organized Outsourcing

Plan the Outsource

Measure and Manage Outsource Relationship


Phase| Define and Organized Outsourcing

1.1 Establish Outsourcing Team


-teams for its various outsourcing projects.
1.2 Conduct Strategic Analysis
-effort must be based on a clear strategic direction
1.3 Identify the best Candidate
-Picking the wrong areas is often a source of failure.
1.4 Plan the outsource Contract
-clarify expectations and set performance metric
Phase| Plan the Outsource
2.1. Develop Outsource Work Requirement
-A clear definition of accountability is essential to success
2.2 Select Partners
-Providers must be selected based on their total capabilities and
cultural fit
2.3 Conduct Risk Management
-A detailed risk management plan needs to be developed.
2.4 Transition to Management
-operational details of moving to the new environment.
Phase| Measure and Manage Outsource Relationship

3.1 Collect status


3.2 Analyze Variance
3.3 Take Adaptive Action
3.4 Report Status
• Measurement is inherent to good structuring.
• Organizations can only achieve what they can
measure.
Outsourcing can help businesses reduce labor costs
significantly. When a company uses outsourcing, it
enlists the help of outside organizations not affiliated
with the company to complete certain tasks. The
outside organizations typically set up different
compensation structures with their employees than
the outsourcing company, enabling them to
complete the work for less money.

You might also like