f. Ongoing Monitoring
The client should continuously monitor the processes to make sure that the performances of the third party are in line with the outsourcing contract (Wan, Wan & Zhang, 2010). Moreover, the auditor should assess and verify pre-defined ongoing monitoring and ensure its effectiveness. The process should include and not limited to the following; define and certify criteria for service supplier’s performance, ensure regular reports from suppliers on the agreed upon performance standards, evaluate market conditions benchmarking against other supplier options, and identify the probability for improvement, and finally, define negotiation procedures before implementation.
g. Security
The client must be concerned with data and
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The criteria in the RFP is important in identifying the service provider, considering team structure, outsourcing model, and ensure that the supplier suits and understands project background.
i. Legal Considerations
Working with offshore partners requires a clear layout of legal considerations since the legal systems vary from one country to the other (Aron, Clemons & Reddi, 2005). Loopholes in cyber security emanate from such instances. Even if offered similar legal provisions, the client would have to incur high price regarding time and money for a transnational lawsuit. Therefore, before a firm decides to use offshore outsourcing, it needs to consider legitimate issues in the outsourcing contract arrangements (Aron, Clemons & Reddi, 2005). For example, the United States-based companies outsourcing services from say India must be aware of the corresponding data privacy and intellectual property protection in India.
j. Quality Control
Clients must focus on quality as the basis and a top objective for outsourcing contracts. It is totally unacceptable for a vendor to issue products full of bugs and claim not to be responsible. According to Deloitte Consulting’s outsourcing survey carried out in 2012, about 485 of the surveyed firms had their contracts of outsourcing terminated due to issues in service quality (Mirkovic & Vu, 2007). Therefore, clients
As the healthcare system prepares to select a outsource company as its vendor for this project, what types of information should it give to and gather from each vendor under consideration?
Approach of outsourcing should be followed when there is a lack of expertise required for the development of that project. Outsourcing comes with huge number of
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.
Fiscal and IT staff will need to have an understanding of how to answer potential questions from staff or at the very least who the contact person would be to address the concerns. The outsourcing company will also need to provide the available training options that can be utilized during each phase of the transition.
The three criteria that would apply to most projects include payment terms, on-time delivery performance, and reputation. It is important for a company to use the reputable supplier and the one who it has partnered in past projects. These criteria are essential in the project success because these could
It is a concept that has evolved from a manufacturing perspective to a strategic perspective, which views the concept as a way for organizations to focus and be more competitive. The basic premise of outsourcing is that a specialist organization can perform a particular service more efficiently than can internal operations because a specialist organization has an inherent advantage in producing and delivering a service. Superior technology, management skills, or economies of scale may contribute to this perception. The type of sourcing relationship depends on whether a long-term or short-term need exists. To save funds used for benefits for regular employees, temporary workers are hired. In this case, the organization (outsourcer) provides all necessary resources except the workers, who are provided by the vendor. For long-term services, the vendor has full responsibility for delivering the service; the outsourcer provides only a liaison.
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.
Outsourcing has become an integral part of many organizations today. Outsourcing has its advantages and disadvantages that organizations will have to weigh to decide whether or not outsourcing is the best possible solution to their current problems and business operations. Outsourcing refers to the process of hiring external provider to operate on a business or organization function (Venture Outsource, 2012). In this case, two organizations or businesses enter a contract where there will be an exchange of services and payments. This paper will discuss the possible risks an organization may encounter in outsourcing in relation to the use of an external service
Make sure outsourcing company responsive to feedback and makes changes according to the requirements of hiring company. Monitor the process through representatives of hiring company to make sure mistakes being fixed before they incur additional cost.
In this research paper I will discuss the process of contracting out, issues of cost, credibility, accountability, and quality and quantity of services. My discussion will also include reasons for contracting out, opposition, and advantages and problems of contracting out.
The company could also eventually earn a reputation as poor supplier that cannot meet customers’ expectations which would potentially cause the company to lose money and in a worst case scenario, go out of business. Outsourcing an important process could also compromise confidential information, which could lead to the selected vendor using that information to acquire new business; therefore Donna must bind the selected vendor to a contract that prevents the vendor from supplying other customers with that product.
Meet customer demand and Increase customer’s satisfaction: Outsourcing could help DELL overcome the problem on inadequate field service. Since
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
This case addresses many issues that affect insourcing/outsourcing decisions. A complex and important topic facing businesses today is whether to produce a component, assembly, or service internally (insourcing), or whether to purchase that same component, assembly, or service from an external supplier (outsourcing).