Executive Summary
Student Name
August 14, 2010
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
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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,
Interviewee 1: the advantages are numerous in that it takes a shorter period. Most of the staff recruited is aware of what is expected of them and since most are sourced locally socialization, induction and training takes a shorter period.
They may want be interested in increasing staff efficiency and thus provide better service to clients enabling
Decrease costs related to turnover, burnouts, absenteeism & accident-related disability 2. Improvement in employee performance & therefore increase in productivity 3. Counselor can play the role of a business partner to manage behavioral problems brought about by organizational changes (Navare, 2008).
2) The company can increase its efficiency and focus on other areas of business if it outsources a particular process.
Outsourcing can be a means to perform the core functions of an organization effectively by having more time focused on the activities critical to the delivery of services to customer. The non-core activities are performed by the leaders in that area which will help to achieve better efficiencies. Outsourcing can substantially lower costs, help to access better technology and use innovative ideas etc.(Robert,2001). The advantages of outsourcing are: Cost savings:
- More opportunity for employees to make a difference and provide conducive ideas and input.
More whiteboard, comfortable bean sofa, multiple cafeterias, other places to read and work. Employees can move their desk and chairs rather than stay in the confined offices all day.
* Allows a company to concentrate on its core business, leverage its key resources and core competencies, and do even better what it already does best.
Reduced staff turnover: If employees are unhappy in their workplace they are more likely to leave. This is not an efficient way for an organisation to be run because each time an employee leaves they will have to spend time training and watching new employees which can be very time consuming on all staff who in turn will not be able to work as productively. This also can potentially be costly for an organisation because whilst looking for new employees, to cope with work load, employers may have to hire staff from outside organisations which can be expensive but
Outsourcing Work. Outsourcing means just what it says - going "out" to find a "source" to undertake the work. The most obvious advantage of outsourcing appeared to be the cost savings that would come with not having to purchase additional equipment or work space and not having to add to the employee headcount. However, it was noted that some organisations are now doing more themselves in order to develop or preserve their expertise and self-sufficiency.
However, the most common reason on seeking out this type of outsourcing service is the reduction of overhead costs that could be entailed for the recruitment and training of staff to handle this process. It is definitely for you and your business in soaring to greater heights, abundance and success. To be able to survive the tough industry of the business world.
While it lessens the burden on organizations, reducing and shifting the cost and risk of its IT operation, security and management issues to an external service provider or vendor, outsourcing any portions of an organization's Information System has significant risks that can sometimes become detrimental to the outsourced organization. According to the Commission on Government Outsourcing, "when outsourcing an organization exposes itself to significant risks in terms of security, accuracy, and completeness of information (Holroyd City Council, 2008)". Comprised in the rest of this document is an
Growing business organizations are constantly looking for ways to improve their performance by decreasing operational costs and increasing revenue. Business Process Outsourcing (BPO) is one of the strategies that can facilitate these goals. BPO refers to outsourcing of business processes to external agencies, with the goal of relieving the company of non-business-critical tasks, while concentrating on its core business.
Offshoring is the practice of relocating business processes to lower cost locations outside the country of origin. This is not a new practice for companies in the United States. Moving business processes to another country to take advantages of lower operating costs and cheap labor seems like a great idea. However, the dilemma for a company is whether the benefits of offshoring outweigh the risks. This dissertation will begin by briefly reviewing the history of offshoring. Next, it will examine the various advantages and disadvantages associated with offshoring. Thirdly, it will explore the growing trends of backshoring and nearshoring in situations where
Since the late 19 century, as described Mukherjee (Cited in Peng 2014) Indian Business Processing Offshoring (BPO) industry case study, outsourcing business processes offshore has been the vital strategy in response to the business survival of the rapidly internationalised resource environment. In essence, as described Mukherjee, it is the complexity of definitive features for a successful BPO for Multi-National Companies (MNC) and the lack of regulative measure of examination and control of the BPO industry that resulted in a double edge sword; as offshore outsourcing highly value adding business process activities increases the potential in relieving operation process capacity, subsequently allowing effective optimisation of existing