Do or delegate : developing an outsourcing plan /

Globally, outsourcing has been a popular strategy to achieve a lower cost of production, get access to specialist and shorten the development period for firms. However, its effectiveness is largely dependent upon the way outsourcing is planned and executed. Future managers are expected to be aware o...

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Bibliographic Details
Main Authors: Hassan, Yusuf (Author), Pandey, Jatin (Author), Rajeev, Priya Nair (Author)
Format: Electronic eBook
Language:English
Published: London : Indian Institute of Management, Kozhikode, 2018.
Series:SAGE Business Cases.
Subjects:
Online Access:CONNECT

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500 |a Originally Published In Hassan, Y., Pandey, J. & Rajeev, P. (2018). Do or Delegate: Developing an Outsourcing Plan. Kozhikode, India: Indian Institute of Management, Kozhikode. 
504 |a Includes bibliographical references and index. 
520 |a Globally, outsourcing has been a popular strategy to achieve a lower cost of production, get access to specialist and shorten the development period for firms. However, its effectiveness is largely dependent upon the way outsourcing is planned and executed. Future managers are expected to be aware of the possible outcomes associated with an outsourcing decision that goes wrong. By indulging management students in activities resembling real life decision dilemma, they can be imbibed with skills to take appropriate outsourcing related decisions. Other than outsourcing process, the simulation can also be used to teach consensus and conflict management, problem diagnosis and critical thinking.The current simulation assigns students the role of chief strategy officer of a popular cricket league. The league has been incurring losses in the last three financial years. As a result, the management was forced to examine and identify potential solutions. To address the Series of discussions and brainstorming by the promoter and other stakeholders lead to the conclusion that league should retrench 70% their workforce and outsource all its major functions to an outsider. It would not only reduce their costs, but also improve the quality of their services (league tournaments).The task to finalize the list of activities to be outsourced was delegated to the respective functional heads of the league. These heads would retain their positions in the organization, except that now they the service provider (for respective functional tasks) would report to them. The management realized that the functional heads lack experience of handling outsourcing, Uniformity in their decision was must to prevent any unwarranted fallouts. Therefore, they decided to formulate an outsourcing strategy guideline cum advisory to help these functional heads in their decision making. The purpose is to make the outsourcing decision more logical and relevant for the overall benefit of the organization. Students as chief strategy officer have to develop these guidelines based on certain clues which would made available to them. 
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