Outsourcing the purchase of components or "hard goods" isn't a new phenomenon: it is referred to as the "buy" portion of an organization's common make-or-buy decisions. In the current service-oriented market, nonetheless, make-or-buy decisions are now normally do-or-buy decisions that represent the strategic question of whether entities that are outside should be hired to perform support service activities that are considerable. Support functions including customer service and information technology can be outsourced to supply many organizational benefits.
Outsourcing Support Functions Identifying and Managing the Good, the Bad, and the Ugly Case Study Solution
Firms often point to the price savings for labour and training, but also cite the advantages of releasing corporate resources for alternative uses and enabling the business to focus on its core competencies. Support functions that are outsourcing is not straightforward, though, and companies must manage the related strategic, quantitative, and qualitative risk factors.
This post discusses some of the possible hazards that must be confronted when a business outsources internal support functions, and describes how the Committee of Sponsoring Organizations of the Treadway Commission's Enterprise Risk Management (ERM) model can help in managing and controlling these risks.
PUBLICATION DATE: July 15, 2009 PRODUCT #: BH337-HCB-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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