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1 – 10 of over 20000
Article
Publication date: 1 September 2006

Glenn Parry, Mike James‐Moore and Andrew Graves

The purpose of this paper is to introduce and provide an insight into the benefits of outsourcing the procurement function for engineering commodity items.

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Abstract

Purpose

The purpose of this paper is to introduce and provide an insight into the benefits of outsourcing the procurement function for engineering commodity items.

Design/methodology/approach

Research into the literature presents the development of outsourcing procurement functions and this manuscript adds to the body of knowledge through introducing the outsourcing of engineering commodity procurement, illustrated with the case study example.

Findings

A US Aerospace Fortune 50 company has made savings by outsourcing the procurement of commodity engineering parts. This has occurred in two stages. Firstly the commodity procurement was locally outsourced and staff migrated to the service provider to whom commodity procurement was a core competence enabling them to offer cost savings. Secondly the back office and telephone service was moved to India, further reducing cost whilst enhancing the service through an increased headcount.

Originality/value

The paper provides the first example of the two stages of outsourcing engineering commodity procurement.

Details

Supply Chain Management: An International Journal, vol. 11 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 20 February 2017

Heiko Gewald and Leonie Schäfer

The purpose of this study is to derive a prioritized list of the present and future topics that sourcing managers in large companies are mostly concerned with using a rigorous…

Abstract

Purpose

The purpose of this study is to derive a prioritized list of the present and future topics that sourcing managers in large companies are mostly concerned with using a rigorous methodological approach.

Design/methodology/approach

The Delphi method was chosen to derive the list. An initial list of topics was compiled based on a literature review combined with the results of an expert panel. This input was prioritized and extended by sourcing managers over three iterations.

Findings

The findings indicate that outsourcing remains a hot topic, even after almost 25 years of academic research. The authors identified four clusters where outsourcing scholars who are interested to provide insights and guidance for practitioners should focus their attention: managerial decisions (selection of the right partner and ability of the company to outsource parts of their business), managing the service provider (governance issues and relationship management and alignment), managerial responsibilities (integrated risk management and adherence to regulation and compliance) and increased flexibility (cloud computing and multi-vendor arrangements).

Research limitations/implications

The findings are only directly transferrable to large companies using experienced sourcing managers in Germany.

Originality/value

The findings may serve as input in formulating a research agenda which helps to align scholars’ focus and practitioners’ problems.

Details

Journal of Global Operations and Strategic Sourcing, vol. 10 no. 1
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 5 July 2021

Delshad Hoseini and Mohsen Shafiei Nikabadi

The purpose of this study is to achieve the dynamic model of outsourcing success factors in project-based companies.

Abstract

Purpose

The purpose of this study is to achieve the dynamic model of outsourcing success factors in project-based companies.

Design/methodology/approach

This study is descriptive-survey in terms of method and practical in terms of purpose. To achieve the dynamic model of outsourcing success, 1,000 outsourcing articles published in high-status journals from 2017 to 2019 were first text-mining. Then, using the clustering technique, the factors affecting the success of outsourcing were obtained. To achieve the key variables, the variables obtained by interpretive structural modeling (ISM) were then leveled. Then, the strategic options development and analysis (SODA) technique has been used to achieve a consensus and coordination on factors relationships. Finally, the dynamic model of outsourcing success in GHODRAT CONTROL PARS Company has been modeled and implemented.

Findings

In total, five clusters and nine factors were extracted (strategy, management, performance, market, R&D, supplier, product, organizational data and outsourcing findings). In central and domain analysis, two factors, “Strategy” and “R and D,” were recognized as factors that have the most interaction and centrality. The result of the dynamic model indicate that the organization will significantly reduce the construction time of the power plant by improving the “R and D” factor.

Originality/value

In this study, various techniques have been combined. Therefore, one of the aspects of innovation in the present study is the combination of methods that have not been used earlier. The second aspect of this study’s innovation is using SODA technique to design the dynamic model of outsourcing success factors. Given that the scope of this study is the component affecting the success of outsourcing, so extensive research has been conducted in the field of articles worked in the field of outsourcing to get a comprehensive view of the components affecting the success of outsourcing, which has not been reviewed in other articles. In this study, in addition to identifying the effective factors, their identified and also how these variables affect the successful performance of outsourcing in the form of a dynamic model, and then analyzed.

Details

Journal of Facilities Management , vol. 19 no. 5
Type: Research Article
ISSN: 1472-5967

Keywords

Article
Publication date: 1 February 2000

Chris Fill and Elke Visser

The decision to outsource a part of an organisation’s activities is often the result of an initiative to realise potential production cost efficiencies. In order to avoid the use…

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Abstract

The decision to outsource a part of an organisation’s activities is often the result of an initiative to realise potential production cost efficiencies. In order to avoid the use of such narrow decision criteria this paper considers the use of a wider array of inputs. Following a review of the literature, a composite outsourcing decision framework is presented. This framework consists of three main components. The first seeks to utilise the unique contextual factors associated with each decision; the second considers the strategic implications of deciding to outsource and the third investigates the traditional cost aspects. The framework is then applied to a case study concerning an engineering organisation which had to decide whether to outsource part of its production facilities. The outcomes suggest that the framework was a useful instrument in assisting management in making this decision, although further work in this area is required.

Details

Management Decision, vol. 38 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 11 November 2014

Sankalp Pratap

The aim of this paper is to go beyond the “What to outsource” and “To Outsource or Not” debate. Recognizing outsourcing as a fast growing reality that firms have to depend upon…

4619

Abstract

Purpose

The aim of this paper is to go beyond the “What to outsource” and “To Outsource or Not” debate. Recognizing outsourcing as a fast growing reality that firms have to depend upon, the paper concerns itself with optimal management of outsourcing arrangements through the practice of “outsourcing capability”. It argues that outsourcing failure can be mitigated if organizations see outsourcing as an “ongoing activity” to be managed as opposed to treating it as a one-time opportunistic “act”.

Design/methodology/approach

Based on the review of existing literature and drawing upon recent instances of outsourcing successes and failures, the paper develops a conceptual framework which divides various organizational processes into four different classes. It delineates the varied aspects of “outsourcing capability” that a firm would need to use to manage these varied class of processes as and when they are outsourced.

Findings

There is no “one-size-fits-all” approach to managing outsourced processes. Different processes require emphasis on different aspect of outsourcing capability if outsourcing is to deliver the envisaged benefits.

Originality/value

The traditional focus in outsourcing literature has been on the core/non-core process with the recommendation to keep core processes in-house and outsource the non-core processes. This distinction can be transitory and hence detrimental in the era of hyper-competition. I argue that firms should instead focus on developing and refining aspects of “outsourcing capability” relevant to the varied class of processes that they wish/need to outsource.

Details

Strategic Outsourcing: An International Journal, vol. 7 no. 3
Type: Research Article
ISSN: 1753-8297

Keywords

Article
Publication date: 20 November 2009

Mingu Kang, Xiaobo Wu and Paul Hong

The purpose of this paper is to present a research model and case illustrations that explore strategic outsourcing practices for sustainable competitive advantages in the Chinese…

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Abstract

Purpose

The purpose of this paper is to present a research model and case illustrations that explore strategic outsourcing practices for sustainable competitive advantages in the Chinese context.

Design/methodology/approach

This study is based on in‐depth interviews of executives of three multi‐national firms (MNCs) from Switzerland, Korea and the USA that have been successfully operating in China for more than seven years.

Findings

This paper discusses how three MNC firms in China maintain clear and disciplined strategic outsourcing and achieve desired business outcomes. They race to the top by managing strategic insourcing for high risk and high profit items while outsourcing low risk and high profit leveraging items.

Originality/value

The paper presents a strategic outsourcing model and case studies of three multi‐national firms in China, which suggest both theoretical and managerial implications showing how to implement successful outsourcing practices in the global market.

Details

Strategic Outsourcing: An International Journal, vol. 2 no. 3
Type: Research Article
ISSN: 1753-8297

Keywords

Article
Publication date: 19 September 2008

Sheshadri Vyankatrao Kulkarni and Mamata Jenamani

This paper aims to present a strategic framework for make‐or‐buy (MoB) decision‐making process and a case study based on the framework. This framework can be applied to all the…

3106

Abstract

Purpose

This paper aims to present a strategic framework for make‐or‐buy (MoB) decision‐making process and a case study based on the framework. This framework can be applied to all the scenarios of MoB decision‐making that includes making decisions for new components and reevaluating the decisions for presently in‐sourced or outsourced components.

Design/methodology/approach

Based on this study of an Indian Automobile Company and review of the literature the paper proposes a strategic framework for MoB decision‐making. Unlike previous academic attempts, where a framework is developed first based on the existing theories followed by illustration through case studies, our approach starts with a case study, the paper then proposes a framework that best suits the company's need. Later the paper discusses the specific features of the framework that makes it applicable to other manufacturing sectors.

Findings

The sourcing decision‐making for any firm is a complex and dynamic process where, after stipulated period firms have to reevaluate their decisions. Existing frameworks treat both fresh and reevaluated decisions alike. It is found that the need for a framework with separate provision for outsourcing decision reevaluation. The paper identifies partial outsourcing as a strategic option to avoid supplier opportunism. It also explicitly suggests the exact decision point where risk evaluation is necessary during MoB decision‐making process.

Originality/value

The proposed framework takes a detailed and critical look at actual outcomes in terms of costs, competences and risk. Three important considerations adopted from the literature and incorporated in the proposed framework, makes it unique: provision for reevaluating the MoB decision, consideration of partial outsourcing as a strategic option other than purely making or buying, identification of decision points where risk evaluation is necessary.

Details

Strategic Outsourcing: An International Journal, vol. 1 no. 3
Type: Research Article
ISSN: 1753-8297

Keywords

Article
Publication date: 1 November 2011

Navin K. Dev, Rahul Caprihan and Sanjeev Swami

The purpose of this paper is to analyze the case of a manufacturing firm situated in an industrial city of India, focusing on supply chain management issues of the concerned…

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Abstract

Purpose

The purpose of this paper is to analyze the case of a manufacturing firm situated in an industrial city of India, focusing on supply chain management issues of the concerned organization from two operational perspectives: supply side (or the procurement side) and the distribution side of the system.

Design/methodology/approach

The authors first considered the outsourcing decision‐making problem in a static environment using analytical expression by means of a variable fraction of demand. Next, the authors extended the scope of this problem by considering outsourcing decisions in a dynamic environment, using the sequential decision‐making approach with various operational and inventory factors. Finally, the authors carried out the study of the distribution side of the supply chain of industry using discrete event simulation.

Findings

It was observed that, in the case study organization, because of the rather unstructured approach in dealing with the outsourcing perspective, the authors suggested the adoption of a more scientific approach in computation of fraction of demand to be outsourced. Further, since the distribution network typically experienced high inventory levels throughout the supply chain, it was decided upfront to optimize this performance measure.

Originality/value

The primary objectives of this exercise are to: address the operational concerns of a real‐life manufacturing environment; apply the theoretical models in a realistic environment, and compare the results of theory with practice; and provide actionable managerial recommendations.

Article
Publication date: 25 January 2008

David Simmonds and Rebecca Gibson

The purpose of this paper is to provide an overview of approaches to outsourcing HRD in the UK.

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Abstract

Purpose

The purpose of this paper is to provide an overview of approaches to outsourcing HRD in the UK.

Design/methodology/approach

This paper employs semi‐structured interviews and case studies. The research model was developed from a literature review.

Findings

There are many problems associated with outsourcing any or all aspects of the HRD function. Approaches to outsourcing vary between firms, largely because their impetus for taking training outside is likely to differ. There are certain key issues that need to be considered when trying to make an outsourced HRD strategy successful in any organization: making the right decision about what to outsource; engaging the right providers; and putting measures in place to build and maintain a strong, trusting, effective relationship.

Research limitations/implications

The model should be further tested, applied and refined as necessary.

Practical implications

Organizations wishing to outsource HRD could be guided by the model and findings of this research.

Originality/value

A novel and innovative two‐part model was developed from a literature review and tested against two large well‐known UK organizations. It will be of value to HRD managers and researchers.

Details

Journal of European Industrial Training, vol. 32 no. 1
Type: Research Article
ISSN: 0309-0590

Keywords

Article
Publication date: 1 October 2018

Maqsood Ahmad Sandhu, Ahm Shamsuzzoha and Petri Helo

The purpose of this paper is to deal with the importance and obstacles of outsourcing strategy in project business in terms of product development perspectives. This strategy is…

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Abstract

Purpose

The purpose of this paper is to deal with the importance and obstacles of outsourcing strategy in project business in terms of product development perspectives. This strategy is intrinsically analyzed and evaluated with respect to the strategic business environments.

Design/methodology/approach

The objective of this research is to analyze the advantages and limitations of the outsourcing that have been identified in prior studies. This research has attempted to investigate the performance implications of outsourcing strategies in terms of theoretical considerations and implementation perspectives.

Findings

In this study, the authors have presented a general overview of outsourcing strategies in terms of both light and dark sides of this approach. Various driving forces of outsourcing strategy along with critical success factors are articulated within project to product development perspectives.

Research limitations/implications

Future research could be continued to measure various performance variables such as productivity, sales, revenues, career opportunities, manifest in power struggles, change jobs, change organizational cultures, etc. in multiple case companies, which affect with the success or failure of outsourcing arrangements.

Practical implications

The term outsourcing is nowadays a widely known business strategy, where manufacturing firms share partly or fully of their production process with outside organizations or suppliers. The research approach as articulated within this paper would be beneficial for project business organizations and specially the product designers and project managers for planning and developing their strategic business potentials with respect to outsourcing and in-sourcing decisions.

Originality/value

In this paper a high-level decision-making model for outsourcing and a cause and effect type framework are demonstrated with a view to ease the decision-making process for the organizations managers.

Details

Benchmarking: An International Journal, vol. 25 no. 7
Type: Research Article
ISSN: 1463-5771

Keywords

1 – 10 of over 20000