Outsourcing the purchase of components or “hard goods” is not a new phenomenon: it is collectively known as “buy” part of a company make-or-buy decisions. In the current service-oriented economy, but make-or-buy decisions today are often do-or-buy decisions, which hired the strategic question of the need outside people to perform essential support service activities reflect. Support functions such as information technology and customer service can be outsourced to offer many o … Read more »

Outsourcing the purchase of components or “hard goods” is not a new phenomenon: it is collectively known as “buy” part of a company make-or-buy decisions. In the current service-oriented economy, but make-or-buy decisions today are often do-or-buy decisions, which hired the strategic question of the need outside people to perform essential support service activities reflect. Support functions such as information technology and customer service can be outsourced to provide many organizational benefits. Companies often refer to the cost savings for work and training, but also cite the benefits of releasing corporate resources for alternative uses and allow the company to focus on its core competencies. Outsourcing support functions is not easy, however, and companies need to manage the associated strategic, quantitative and qualitative risk factors. This article describes some of the possible risks that are faced when a company outsources to be internal support functions and describes how the Committee of Sponsoring Organizations of the Treadway Commission, Enterprise Risk Management (ERM) model can manage and control these to support risks.
«Hide

from
Cecily A. Raiborn,
Janet B. Butler,
Marc F. Massoud
Source: Business Horizons
10 pages.
Release Date: 15, July 2009. Prod #: BH337-PDF-ENG
Outsourcing support functions: Identifying and Managing the Good, the Bad and the Ugly HBR case solution

[related_post themes="flat"]