Purpose
The purpose of this paper is to highlight an area in a financial organization that may be outsourced and prepare an executive summary document that focuses on the cost savings of the outsourcing/contracting process for the business process that I’ve decided to outsource. This analysis will justify my decision for the business process outsourced by the followings: * Establish the preliminary performance targets/level of service that will be required from the selected vendors * Establish the type of contract that you will use for each contract * Determine the evaluation criteria you will use to select the preferred vendor(s) * Identify the number of vendors that you will select to provide the services to be
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Vendor Considerations
I propose we use two vendors to perform the job for the bank; One vendor for our call center operations and another for our transaction and payroll functions. This is the appropriate number because research has concluded that if we use one vendor is can lead to a greater chance of experiencing poor quality of work. Also, I strategically want one vendor for our call center operations because we will be reducing cost substantially. The bank needs the focus of our selected vendor to be solely on this function and specializing in this function rather than a more “multi-function vendor” which leads to one or more of the functions suffering from lack of attention.
We will use multiple performance targets to track against each vendor. Response times will be used to track how fast vendors respond to queries and issues. This is important because we need to ensure that the delays in responses to issues are kept minimal to enable our entire HR process to run smoothly. We will also focus on: * Levels of completeness and accuracy * Turnaround times- How long will staffing actions take to complete * Service Availability
Key points that we will consider when selecting the appropriate vendors for our HR functions will consist around the following key areas: *
Because many businesses in the US have more often began outsourcing different business products instead of doing them in-house, it is important to understand why outsourcing may be the best option. Although many tie outsourcing to foreign markets, outsourcing can include both foreign and domestic markets. By entering into a contractual agreement, outsourcing allows organizations to pay for services they need. This gives the option for a business to get professionals to perform services for them that the business may not have the staff for. Outsourcing provides a cost saving-strategy that is usually more affordable. Ultimately,
ways of evaluating the return on Super. The first was an incremental basis that was
In the case of Providian Trust, the organization attempts to outsource the implementation of a major software system aimed at updating its internal business processes and outdated information system to be more cost efficient and provide more timely services to its customers. However, there are certain activities and processes that are needed to ensure that the procurement process is effective and the appropriate goods and/or services are acquired. For example, a needs analysis or feasibility study will need to be conducted prior to sending out the request for proposal (RFP). Specifically, for IT projects, such as the software development for Providian, this will pay off despite the chosen vendor as well as help avoid falling in love with a pretty interface and not what’s under the hood. In addition, the focus will be on solving business problems and seeing and understanding vendor capabilities and tool demos in relation to the project goals and objectives for the future. Additionally, there are some key criteria that should be followed to help ensure the success of a vendor selection and the procurement planning
List and describe at least three factors that a firm should consider when making an outsourcing decision.
Product Analysis is an important tool in the definition of the project scope. The identified vendors’ HRIS solutions should be analyzed to identify if their software functionality matches the collected requirements.
Overview: Leveraging its deep performance management beginnings, SuccessFactors has developed an innovative HR Business Suite product for small, mid, and large sized organizations using a highly usable, collaboration-friendly interface.
The first step in setting up the new Human Resource Application, (HRA), is to gather information about the system requirements and user needs from everyone that will be involved in the startup and rollout of the new system. The process of gathering information from involved stakeholders can be a tedious process if the wrong techniques are used. So, to expedite this in an orderly and timely manner we will be passing out questioners to all members of the Human Resource Department and to all Department heads. Using Questioners will help the IT department get an idea of what requirements are expected from the new system. It is not cost efficient to talk to each employee so, it would be very beneficial for all that every questioner is filled out in a timely manner. We will be emailed to each employee on Monday September 9th, 2013 and would like a response no later than Thursday September 12th, 2013, (for processing purposes). Questioners will also be available on the Employee Web Site under HR applications.
Since Smith’s Information Services Company is in the business of processing and analyzing consumer data, the minimum number of vendors to solicit for outsourcing the data center would be three, with a maximum of ten. This would provide not only a fair solicitation process, but also would ensure the company receives the best value for the services provided by the selected vendor. While the goal of the outsourcing is to reduce the company’s soaring overhead costs, simply selecting any cloud computing company based on cost alone would be foolish. Ensuring there are multiple vendors solicited for this service would ensure the company’s costs are reduced while still maximizing profits. Given that personnel costs account for the majority of a company’s overhead costs, followed closely by utilities costs, any vendor solicited should cost less than Smith’s Information Services is currently spending on its employees and utilities. Limiting the number of vendors solicited to ten or less would also ensure a quick evaluation period without the chance of getting mired in minute details between the
Performance targets to staff: customer service skills need to be 20 %, customer complaint rates should be no more than 2%, and product knowledge test needs to be 50%.
Customers must use the internet to fill out an online form to address their complaints or service needs. These forms are processed by employees in your department. Currently the turnaround time on any given form is between four to eight hours. This creates a number of other customer complaints. Project Call Center is designed to reduce this turnaround time by 75% by creating and staffing a call center in Tampa. Building acquisition, building renovations, building fit out, IT system upgrades, and hiring and training of staff are estimated to cost $8.5 million dollars. This $8.5 million dollars can be paid evenly in any two quarters in the next year. In addition, seven new employees will need to be hired at $40,000 burdened labor costs per year to staff the call center. Management of this project could easily be done with the current in-house staff. Most of the work of this project would be outsourced and will have minimal impact on day-to-operations.
How long has the vendor been providing these services? Ask for references that are at least 5 years old and ensure that these references are current clients. This will help to ensure that you are dealing with a company that not only knows how to obtain clients but also knows what it takes to maintain clients.
2. Based on the information in the case, which provider would you select (and why)? Argue in favor of and against each vendor before arriving at the final decision?
Contract Law Case Study Both the parties in the question have come to a problematic situation
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
The main purpose of this report is to distinguish and provide evidence to the fact that Anne Parish, a former employee at Ace Accident Insurance in Cairns was treated unfair by her former employer. In employment relations all employees should be treated and remunerated fairly, irrespective of them being an independent contractor or an employee (Fair Work Act, 2009).