PURPOSE/OBJECTIVE: The purpose of this executive summary is to outline the outsourcing / contracting process for Travel Magazine. This process will ultimately be used to determine which business processes at Travel Magazine will be outsourced and which will remain in-house. In addition, this summary will include various vendor selection considerations, such as evaluation criteria and performance measurements, for those processes that will be outsourced.
GENERAL OUTSOURCING INFORMATION: The following is some general information regarding the outsourcing of business processes: * Outsourcing promises valuable opportunities, but may also pose substantial challenges and risks * One…show more content… In addition, we believe that it would be to our competitive advantage to continue with our strategic marketing and advertising plan as opposed to outsourcing this process.
RELEVANT FACT #2: The remaining seven business processes are candidates for outsourcing based on the above strategic deductive reasoning technique. Based on this information, please see the table below for further analysis of these processes and the feasibility of each regarding outsourcing.
BUSINESS PROCESS | OUTSOURCING PROS | OUTSOURCING CONS | Accounting (accounts payable, accounts receivable, payroll, general accounting, etc) | 1) Reduced personnel costs2) Access to better and more specialized talent3) Allows for better growth potential, particularly concerning shared services | 1) Takes away some level of control of accounting and bookkeeping processes2) Allows vendor access to potentially sensitive financial information | Photography | 1) Eliminates the need for internal photography staffing.2) Access to more expert photographers3) Reduces the costs associated with photography equipment | 1) Takes away some of the internal photographic creativity2) Prevents our staff from having as much of a choice with regards to photos (must rely more on photos from others) | Publishing | 1) Reduced overall costs associated with publishing2) Allows staff to concentrate more on creative writing and editorials | 1) As a magazine company,