Outsourcing: guidelines for a structured approach

Outsourcing is a management approach by which an organization delegates some noncore functions to specialized and ef®cient service providers. In the era of ªglobal marketº and ªe-economyº, outsourcing is one of the main pillars of the new way to conceive the relationships among companies. Despite outsourcing large diffusion, huge business cases and big deals of documentation available on network or press, there is no structured procedure able to support the govern of the evolution of a generic outsourcing process. In accordance with the principles of total quality management, this paper describes a proposal of a new approach for managing outsourcing processes. The model, which can be easily adapted to different application ®elds, has been conceived with the main aim of managing strategic decisions, economic factors and human resources. The approach is supported by different decision and analysis tools, such as benchmarking techniques, multiple criteria decision aiding (MCDA) methods, cost analysis, and other process-planning methodologies. An application of the method to a real case is also provide

ANALISIS PENERAPAN OUTSOURCING PADA BANK SULSELBAR CABANG SYARIAH MAKASSAR

This research aims to discuss the application of outsourcing Bank Sulselbar Makassar Sharia Branch. Using qualitative approach data collection through in-depth interviews with the number of informants 7 people.The results showed that the application of outsourcing is going well. This can be seen from the indicators used as a reference in the application of outsourcing. These indicators are outsourcing planning, strategy selection, cost analysis, employer selection, negotiation stage, resource transition and relationship management.  From these indicators in general it has been well applied. However, there are still some shortcomings in the application of outsourcing, namely from the provision of guarantees and payroll of outsourcing employees. The application of outsourcing is running well due to the supervision carried out by external parties and internal parties. Keywords: Human Resource Management, Outsourcing, and Outsourcing Implementation.

The Role of Application Portfolio Management in Application Services Outsourcing: Explicating Variations in Application Portfolio Management among Outsourcing Gestalts

Prior research has identified different outsourcing strategy types most likely to succeed, described by the outsourcing extent, the contract type, and duration. Each of the strategy types serves a particular outsourcing outcome. Since application portfolio management pursues improvement and optimization in the application landscape, it supports and enables decisions in the field of application services outsourcing. The aim of our research is to investigate the varying role of application portfolio management (APM) for different application services outsourcing strategies. Therefore, we conducted case study research with eleven large German and Swiss companies. In order to identify the varying role of APM, we compared the behaviors of the companies successfully applying particular strategy types, analyzing the differences in APM capabilities, application portfolio structure, and the influence of application characteristics. The results reveal that the companies applying different strategies vary in the extent to which APM is implemented in an organization

ANALYSIS OF THE RELATIONSHIP BETWEEN OUTSOURCING AND HUMAN RESOURCES MANAGEMENT (HRM) IN HOTEL COMPANIES

The impact of outsourcing on human resources management in hotel companies must be viewed through activities with which one tries to achieve goals set at all levels of business. In the application of outsourcing it is necessary to take into account the impact of outsourcing to human factor, which is one of the most important business factors in the tourism sector, and all because of the fact that the functional human resources management is necessary for efficient operation in the hotel business. The goal of this study is to explore the application of outsourcing in hotel companies in the Republic of Croatia, that is to determine the relationship between outsourcing and human resources management. It is assumed that the increase of outsourcing level is in correlation with better human resources management. The analysis will include the characteristics of hotel companies regarding outsourcing application. Also, it will explore the relation between outsourcing level and certain indicators of human resources management which include average service length in the company in relation to age of the company, involvement of employees in decision making and education, remuneration and employee advancement. Likewise, the mentioned relation will put hotel company sizes in context where it will be examined whether the relation of outsourcing and human resources management is the same in all hotel companies. Finally, in accordance with obtained parameters and research results, a conclusion will be presented where limitations and guidelines for future research will be suggested. Methodology of research will be based on factor analysis, correlation and descriptive statistics

ANALYSIS OF THE RELATIONSHIP BETWEEN OUTSOURCING AND HUMAN RESOURCES MANAGEMENT (HRM) IN HOTEL COMPANIES

The impact of outsourcing on human resources management in hotel companies must be viewed through activities with which one tries to achieve goals set at all levels of business. In the application of outsourcing it is necessary to take into account the impact of outsourcing to human factor, which is one of the most important business factors in the tourism sector, and all because of the fact that the functional human resources management is necessary for efficient operation in the hotel business. The goal of this study is to explore the application of outsourcing in hotel companies in the Republic of Croatia, that is to determine the relationship between outsourcing and human resources management. It is assumed that the increase of outsourcing level is in correlation with better human resources management. The analysis will include the characteristics of hotel companies regarding outsourcing application. Also, it will explore the relation between outsourcing level and certain indicators of human resources management which include average service length in the company in relation to age of the company, involvement of employees in decision making and education, remuneration and employee advancement. Likewise, the mentioned relation will put hotel company sizes in context where it will be examined whether the relation of outsourcing and human resources management is the same in all hotel companies. Finally, in accordance with obtained parameters and research results, a conclusion will be presented where limitations and guidelines for future research will be suggested. Methodology of research will be based on factor analysis, correlation and descriptive statistics

Business Process Outsourcing

Business Process Outsourcing (BPO) is gaining widespread acceptance throughout the US, Europe, South America and Asia Pacific as the top executives of leading multinationals turn to outsourcing as a strategic management tool for improving corporate performance, profitability and shareholder value. BPO started to emerge a few years ago as follow-on to IT outsourcing. The concept is not new; BPO is the contracting of a specific business task. Outsourcing focuses on adding value typically to non-core and non-complex activities by buying in best practices and economies of scale. Because reduce costs, focus on core strategic activities and improve customer service, an increasing number of organizations in both the public and the private sector are looking toward BPO as a solution to their needs.Business Process Outsourcing, IT outsourcing, the extended enterprise, Application Service Provider, Application Maintenance Outsourcing

Governance of Offshore IT Outsourcing at Shell Global Functions IT-BAM Development and Application of a Governance Framework to Improve Outsourcing Relationships

The lack of effective IT governance is widely recognized as a key inhibitor to successful global IT outsourcing relationships. In this study we present the development and application of a governance framework to improve outsourcing relationships. The approach used to developing an IT governance framework includes a meta model and a customization process to fit the framework to the target organization. The IT governance framework consists of four different elements (1) organisational structures, (2) joint processes between in- and outsourcer, (3) responsibilities that link roles to processes and (4) a diverse set of control indicators to measure the success of the relationship. The IT governance framework is put in practice in Shell GFIT BAM, a part of Shell that concluded to have a lack of management control over at least one of their outsourcing relationships. In a workshop the governance framework was used to perform a gap analysis between the current and desired governance. Several gaps were identified in the way roles and responsibilities are assigned and joint processes are set-up. Moreover, this workshop also showed the usefulness and usability of the IT governance framework in structuring, providing input and managing stakeholders in the discussions around IT governance

Application of Facilities Management Practice in High Rise Commercial Properties: Jos in Perspective

The article studied the application of facilities management practice in high rise commercial properties. Convenience sampling technique was used in administering questionnaires to the 60 respondents who responded to the survey. It was found out that the extent of application of facilities management in the subject properties is better described as below average. Similarly, the most frequently tools of facilities management in use and employed in the properties were outsourcing and in-house sourcing. This was influenced by the level of their familiarity with the tools. Planned and Preventive maintenance should be taken regularly in order to enhance the effectiveness of the facilities management and to satisfy both the owner and customers of the organization. Keywords: Commercial Properties, Facilities Management, High Rise Buildings, In-house Sourcing and Outsourcing.

IT Portfolio Management: A Holistic Approach to Outsourcing Decisions

This chapter provides an introduction to the advent of Information Technology Outsourcing (ITO) and its impact on portfolio management in modern day decision-making. Specifically, it outlines the use of the Application Portfolio Matrix (APM) by companies in formulating their strategic IT direction and why such techniques may be unsuitable for outsourcing decisions, which are inherently complex and multi-faceted in nature. Consequently, there is a need for alternative decision support tools to enable companies to determine how to “best-source” various aspects of their business. This chapter subsequently presents an analysis of ten outsourcing decision-making frameworks, identified from the literature, highlighting their commonalities, strengths, deficiencies and the potential misalignment between the theory and practice of outsourcing as determined by focus group discussions. This chapter gives a background introduction to the practitioner-driven Holistic Approach {Business, Information, Organizational} (HABIO) Framework, which adopts a holistic approach to outsourcing that examines underlying issues from the business, information (i.e. technical) and organizational perspectives. The framework adopts a “card/deck” analogy in its design, allowing for the flexibility and scalability required to accommodate the intricacies of heterogeneous outsourcing decisions in varying industry and context. The chapter outlines its application to two case studies, involving multi-million contracts from the finance and retail sectors, which is of particular interest to academics seeking accounts of current practices and practitioners seeking a systematic guide to ITO portfolio management

The application development outsourcing contract decision: The effect of service quality, relationship quality, satisfaction, and switching costs on continuation and discontinuation decisions

Although the popularity of IT outsourcing has grown over the last two decades, approximately one third of outsourcing contracts are discontinued. This discontinuation of contracts has resulted in renegotiations with the original outsourcing vendor, switching to another vendor, and backsourcing, or the return of previously outsourced functions in-house. IT outsourcing is expected to grow to a $160 billion industry in the United States alone by 2005. Given the conclusion by some researchers that so many outsourcing arrangements end in vendor switches or backsourcing, it is apparent that a large amount of money is being needlessly wasted. By better understanding the factors that may lead to the discontinuation of outsourcing contracts, perhaps outsourcing vendors can increase the success rate of outsourcing agreements and companies can make better outsourcing decisions. Thus, the objective of this research is to determine what factors may be associated with the decision to switch vendors or backsource. IT application development managers were surveyed and 160 responses are analyzed. This data set was subjected to logistic regression analysis to determine the factors associated with application development outsourcing discontinuations. Constructs utilized include service quality, satisfaction, relationship quality, and switching costs. These constructs were chosen as a result of a broad review of the IT and marketing literatures for factors associated with bringing services in-house or switching to another service provider. Overall, poor communication, lack of timeliness, low user understanding, low reliability, high lost performance costs, high pre-switching costs, high sunk costs, and high management costs are significantly related to the decision to discontinue an application development outsourcing contract. These factors span across the four constructs proposed. This research answers a call by Lacity and Willcocks (2001) to investigate backsourcing, as well as a similar outsourcing outcome, switching vendors. The results not only help fill a void in the academic IT outsourcing literature related to outsourcing contract discontinuations, but also provide practitioners with a valuable indication of the factors associated with outsourcing contract discontinuation