Free Essays on Managing the Outsourcing Process

MANAGING THE OUTSOURCING PROCESS Introduction Outsourcing is a management strategy that helps organizations to focus on their core competences in order to gain a competitive advantage and to provide non-core functions or activities with efficient vendors. Outsourcing represents a sophisticated relationship between the organization and the vendor. Outsourcing process helps the organization to find its outsourcing vendor. Outsourcing process, which should include nine steps, is very, impotant in order to select the right vendor for the organization. (Arslantaà ¾ 1999): STEPS OUTSOURCING PROCESS 1st step Requiring Outsourcing 2nd step Defining Organization’s Needs 3rd step Making Outsourcing Decision 4th step Evaluating Outsourcing Strategy 5th step Formulating Request for Proposal 6th step Evaluating Vendors 7th step Selecting The Best One Among Vendors 8th step Negotiating Contract with The Vendor 9th step Building and Managing Effective Relationship with The Vendor Exhibit 1. Outsourcing Process (Arslantaà ¾ 1999) A-Requiring Outsourcing There are many reasons for an organization to consider outsourcing. Organizations require outsourcing in order to (Arslantaà ¾ 1999); achieve strategic goals reduce costs reduce investment expenditures improve core competence reduce risk downsize and increase flexibility accelerate reengineering benefits access the world class capabilities manage out of control function access to improved technology transfer assets increase quality redirect resources manage financial resources available. B-Defining Organization’s Needs When organizations require outsourcing, they should define their organizations’ needs. Especially, top managers determine which functions or activities should be completed internally and whi... Free Essays on Managing the Outsourcing Process Free Essays on Managing the Outsourcing Process MANAGING THE OUTSOURCING PROCESS Introduction Outsourcing is a management strategy that helps organizations to focus on their core competences in order to gain a competitive advantage and to provide non-core functions or activities with efficient vendors. Outsourcing represents a sophisticated relationship between the organization and the vendor. Outsourcing process helps the organization to find its outsourcing vendor. Outsourcing process, which should include nine steps, is very, impotant in order to select the right vendor for the organization. (Arslantaà ¾ 1999): STEPS OUTSOURCING PROCESS 1st step Requiring Outsourcing 2nd step Defining Organization’s Needs 3rd step Making Outsourcing Decision 4th step Evaluating Outsourcing Strategy 5th step Formulating Request for Proposal 6th step Evaluating Vendors 7th step Selecting The Best One Among Vendors 8th step Negotiating Contract with The Vendor 9th step Building and Managing Effective Relationship with The Vendor Exhibit 1. Outsourcing Process (Arslantaà ¾ 1999) A-Requiring Outsourcing There are many reasons for an organization to consider outsourcing. Organizations require outsourcing in order to (Arslantaà ¾ 1999); achieve strategic goals reduce costs reduce investment expenditures improve core competence reduce risk downsize and increase flexibility accelerate reengineering benefits access the world class capabilities manage out of control function access to improved technology transfer assets increase quality redirect resources manage financial resources available. B-Defining Organization’s Needs When organizations require outsourcing, they should define their organizations’ needs. Especially, top managers determine which functions or activities should be completed internally and whi...