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Modiri, Mahmoud, and Mohammad Dashti. "Strategic Decision Making for Outsourcing Information Systems with a Fuzzy Multi-criteria Decision-Making Approach." International Journal of Emerging Research in Management and Technology 6, no. 8 (June 25, 2018): 6. http://dx.doi.org/10.23956/ijermt.v6i8.112.
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Today, IS supplier selection is one of the most critical steps in the outsourcing process; the success of outsourcing is highly dependent on the selection of IS suppliers. This paper proposes a new hybrid fuzzy multi-criteria decision-making (MCDM) model, which uses decision-making trial and evaluation laboratory (DEMATEL) technique, analytic network process (ANP), and Vlse Kriterijumska Optimizacija I Kompromisno Resenje(VIKOR) to evaluate four potential suppliers using seven factors and five decision makers using a realistic case study. the results showed that Service support is importance for outsourcing. The proposed model can help practitioners improve their decision making process.
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Ensslin, Leonardo, Clarissa Carneiro Mussi, Ademar Dutra, Sandra Rolim Ensslin, and Sandro Natalino Demetrio. "Management Support Model for Information Technology Outsourcing." Journal of Global Information Management 28, no. 3 (July 2020): 123–47. http://dx.doi.org/10.4018/jgim.2020070107.
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This study deals with the problem of outsourcing management, presenting a structure to support decision-making on effective information-technology outsourcing and highlighting the advantages and disadvantages that must be addressed. Since the study involves multiple variables, partially defined and conflicting objectives, and the will of decision-makers to broaden their understanding of the impact of decisions, the study used the multicriteria decision aid constructivist method to lead data collection and analysis. The chief results presented are: (i) a structured appraisal arranged by 8 strategic objectives and 107 performance indicators; (ii) the strengths and weaknesses of the status quo; and (iii) a process diagram for generating improvements. To ensure presentation of scientific and practical recognition in accordance with the constructivist path, the epistemological view adopted meets the scientific and practical requirements to ensure validity, legitimacy, and effectiveness of a model to support a decision-making process in a practical environment.
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Perçin, Selçuk. "An integrated fuzzy SWARA and fuzzy AD approach for outsourcing provider selection." Journal of Manufacturing Technology Management 30, no. 2 (February 28, 2019): 531–52. http://dx.doi.org/10.1108/jmtm-08-2018-0247.
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Purpose Unlike previous literature, this study offers a novel integrated fuzzy approach to the field of outsourcing decisions. The purpose of this paper is to use design ranges of evaluation criteria that satisfy the functional requirements (FRs) of decision makers to solve the outsourcing provider selection problem. Design/methodology/approach In this study, considering the expected significance of outsourcing evaluation criteria, and the FRs of decision makers expressed in linguistic terms, a robust multi-criteria decision-making (MCDM) tool based on the integrated use of fuzzy Step-wise Weight Assessment Ratio Analysis and weighted fuzzy axiomatic design methods is proposed for use in decision process. Findings The proposed method is applied to a Turkish chemical company. A sensitivity analysis is performed and the outcomes of the proposed integrated framework are compared with those of other MCDM methods such as fuzzy-based Technique for Order Preference by Similarity to Ideal Solution, fuzzy Vise Kriterijumska Optimizacija I Kompromisno Resenje and fuzzy Multi-Objective Optimization on the basis of Ratio Analysis. This validates the usefulness and practicality of the proposed methodology. Practical implications The main contribution of this study is that it defines specific requirements that will assist company managers in eliminating alternatives that do not satisfy the needs and expectations of their company. Originality/value This paper compares the present study with other studies in the field of manufacturing. Additionally, it provides a well-documented case study, which makes the paper of value to researchers interested in the practical applications of MCDM methods.
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NAZARI-SHIRKOUHI, S., A. ANSARINEJAD, SS MIRI-NARGESI, V. MAJAZI DALFARD, and K. REZAIE. "INFORMATION SYSTEMS OUTSOURCING DECISIONS UNDER FUZZY GROUP DECISION MAKING APPROACH." International Journal of Information Technology & Decision Making 10, no. 06 (November 2011): 989–1022. http://dx.doi.org/10.1142/s0219622011004683.
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During the last decade, information system (IS) outsourcing has emerged as a major issue for organizations. As outsourcing decisions are often based on multicriteria approaches and group decisions, this paper proposes a structured methodology based on Fuzzy group decision making approach to evaluate and select the appropriate information system project (ISP) in an actual case. To achieve our purpose, we argue that seven criteria consisting of risk, management, economics, technology, resource, quality, and strategy and five ISPs should be considered for outsourcing decisions. Fuzzy analytic hierarchy process (fuzzy AHP) to find the priority and ranking of each ISP is considered. Using fuzzy theory for selecting the proper IS project can reduce ambiguities and uncertainties that are inherent in the selection procedure. A sensitivity analysis is performed to check the steadiness of the priority ranking and help decision makers to understand different scenarios that show alternative potential developments or different viewpoints concerning the relative importance of the criteria. Our proposed methodology can be applied by a cross-functional team of practitioners and IT managers to select the proper IS project. Also, the proposed approach can effectively consider complex and qualitative decision variables involved in the IS outsourcing decision-making problem. Finally, conclusion and potential issues for future research are presented. The main findings of this research have showed that the combination of AHP method and fuzzy concept to rank and prioritize of IS projects to outsource is a useful and practical tool to make traceable and reliable decision. According to results, a priority of overall score for the five candidates of IS projects reflects that project of "development of the supplier relationship management information system" performs the best, and project of "facilities management" performs the worst according to the experts' judgment in case study.
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Liyanagamage, C., and R. Ranasinghe. "Factors Determining Adoption of Outsourcing Logistics Functions: A Study of Manufacturing and Trading Sectors in Sri Lanka." Asian Journal of Engineering and Applied Technology 9, no. 2 (November 5, 2020): 36–44. http://dx.doi.org/10.51983/ajeat-2020.9.2.1087.
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This study aims at identifying the determinants of adoption of outsourcing logistic functions in Manufacturing and Trading companies in Sri Lanka. After careful review of the existing literature perceived cost effectiveness, quality concerns of logistics outsourcing, perceived risk and perceived professionalism of logistics service provider were identified for the study as their high theoretical and empirical importance in determining outsourcing decision. Primary data was collected by means of semi structured questionnaire from 60 organizations that carry out manufacturing and trading businesses in Sri Lanka. The collected data was analyzed using descriptive statistics and simple and multiple linear regression analysis. Initial simple linear regression analysis proved the statistically significant impact that each of the identified variables have on the adoption of outsourcing. However the multiple regression estimated in this study to analyze the collective effect of the suggested model concludes that the decision makers perception about the cost effectiveness of outsourcing and their perception of risk of outsourcing better explain the adoption of outsourcing in Manufacturing and trading sector in Sri Lanka. Hence, the outsource decision depends on the careful assessment of the decision-making company on its cost effectiveness and possible risk. Therefore, the findings of the present study suggest that outsourcing partners should be carefully selected in order to get the benefit of outsourcing.
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Russell, Roberta S., and Marilyn Smith. "Reeling In Outsourcing: Evaluating Supply Chain Risk And Reward Under Economic Uncertainty." Journal of Service Science (JSS) 2, no. 1 (June 1, 2009): 57–64. http://dx.doi.org/10.19030/jss.v2i1.4290.
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In todays climate of economic uncertainty, companies that have relied on outsourcing in the past to curtail costs are increasingly reeling in their outsourcing decision to more appropriately balance supply chain risk and reward. This paper provides a review of the literature on reversing supply chain outsourcing and frames the sourcing decision in terms of multiple options, including multi- sourcing, near sourcing, and in-sourcing. A decision tree model is presented to aid the decision maker in evaluating the expected value of various sourcing decisions when risks and returns are explicitly considered. Trends and conditions that influence the outsourcing decision are also discussed.
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Hunter, James D., and Allastair N. Hall. "From the shadows into the light: Let's get real about outsourcing." Journal of Management & Organization 17, no. 1 (January 2011): 77–94. http://dx.doi.org/10.1017/s1833367200001723.
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AbstractDespite the continued popularity of outsourcing amongst managers and management researchers alike, signifi cant questions arguably remain as to the adequacy of the typical framing of the outsourcing decision. An extensive review of the literature revealed a skewed, partial and fragmented conceptualisation of the option, further exacerbated by a concerning tendency effectively to rank quantitative outcomes over qualitative outcomes, even ex post. In this article it is argued that a critical analysis of the theoretical frameworks that underlie this body of work suggests a more realistic conceptualisation of outsourcing, both for management researchers and management decision makers.
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Hunter, James D., and Allastair N. Hall. "From the shadows into the light: Let's get real about outsourcing." Journal of Management & Organization 17, no. 1 (January 2011): 77–94. http://dx.doi.org/10.5172/jmo.2011.17.1.77.
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AbstractDespite the continued popularity of outsourcing amongst managers and management researchers alike, signifi cant questions arguably remain as to the adequacy of the typical framing of the outsourcing decision. An extensive review of the literature revealed a skewed, partial and fragmented conceptualisation of the option, further exacerbated by a concerning tendency effectively to rank quantitative outcomes over qualitative outcomes, even ex post. In this article it is argued that a critical analysis of the theoretical frameworks that underlie this body of work suggests a more realistic conceptualisation of outsourcing, both for management researchers and management decision makers.
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Ravasan, Ahad Zare, Payam Hanafizadeh, Laya Olfat, and Mohammad Taghi Taghavifard. "A Fuzzy TOPSIS Method for Selecting An E-banking Outsourcing Strategy." International Journal of Enterprise Information Systems 13, no. 2 (April 2017): 34–49. http://dx.doi.org/10.4018/ijeis.2017040103.
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Selecting the appropriate IT outsourcing (ITO) strategy is important for firms in general and banking institutions in particular to achieve expected benefits, but it remains complex, risky and lengthy process for clients to select the appropriate ITO strategy. Previous academic efforts to support ITO decision incorporated a limited number of factors, which is over-simplification of multi-faceted real world problems. In this paper, after doing in-depth literature review for identifying influencing factors on such ITO decisions, a model with an application of Fuzzy TOPSIS based approach is proposed to rank and prioritize the alternatives. Throughout this study, the authors use data from a real banking case to run the model for supporting outsourcing decision for five ATM, POS, tele-banking, mobile, and internet-banking services. The proposed model can help ITO decision makers advance their decision making process, especially where parameters involve uncertainties and hardly can be assessed by human judgment.
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Liaw, Ching-Fang, Wan-Chi Jackie Hsu, and Huai-Wei Lo. "A Hybrid MCDM Model to Evaluate and Classify Outsourcing Providers in Manufacturing." Symmetry 12, no. 12 (November 27, 2020): 1962. http://dx.doi.org/10.3390/sym12121962.
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It is a common practice for enterprises to use outsourcing strategies to reduce operating costs and improve product competitiveness. Outsourcing providers or operators need to be aware of environmental protection and make products comply with the restrictions of international environmental regulations. Therefore, this study proposes a set of multiple criteria decision-making (MCDM) approaches for systematic green outsourcing evaluation. First, a team of experts is established to discuss mutually dependent relationships among criteria, and the decision-making trial and evaluation laboratory (DEMATEL) technique is applied to generate subjective influential weights. Then, a large amount of data from outsourcing providers is collected, and the criteria importance through the intercriteria correlation (CRITIC) method is used to obtain the objective influential weights. Finally, a novel classifiable technique for ordering preference based on similarity to ideal solutions (classifiable TOPSIS) is proposed to integrate the performance of green outsourcing providers and classify them into four levels. The classifiable TOPSIS improves the shortcomings of conventional TOPSIS and establishes a visual rating diagram to help decision-makers to distinguish the performance of outsourcing providers more clearly. Taking a Taiwanese multinational machine tool manufacturer as an example, the performance of outsourcing providers related to manufacturing activities was investigated to demonstrate the effectiveness and applicability of this proposed model.
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Magnezi, Racheli, Rachel S. Dankner, Ron Kedem, and Haim Reuveni. "Outsourcing primary medical care in Israeli defense forces: Decision-makers’ versus clients’ perspectives." Health Policy 78, no. 1 (August 2006): 1–7. http://dx.doi.org/10.1016/j.healthpol.2005.08.004.
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Atkinson, Mary Anne, Ozden Bayazit, and Birsen Karpak. "A Case Study Using the Analytic Hierarchy Process for IT Outsourcing Decision Making." International Journal of Information Systems and Supply Chain Management 8, no. 1 (January 2015): 60–84. http://dx.doi.org/10.4018/ijisscm.2015010104.
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Decisions related to managing IT resources - which resources to keep in-house and which resources to outsource - are critical to business success. The goal of this paper is to show the usefulness of the Analytic Hierarchy Process (AHP) as a decision-making tool for IT sourcing decisions, based on an analysis of factors that recent literature found to be associated with IT sourcing risk. Although the AHP previously has been suggested for IT outsourcing decision making, this study is the first to consider evaluating the risks of offshore outsourcing, rural outsourcing, and in-sourcing IT processes by using the AHP. From the perspective of the expert decision maker, three IT sourcing strategies were evaluated with respect to 58 criteria. The case study example presented in this paper shows the effectiveness of the AHP to support management for this business decision. The authors' results show that a systematic approach to analyzing outsourcing can reduce the uncertainty and risk that is common in such decisions.
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Hayes, David C., James E. Hunton, and Jacqueline L. Reck. "Information Systems Outsourcing Announcements: Investigating the Impact on the Market Value of Contract-Granting Firms." Journal of Information Systems 14, no. 2 (September 1, 2000): 109–25. http://dx.doi.org/10.2308/jis.2000.14.2.109.
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The objective of this research project is to examine the impact of information systems (IS) outsourcing announcements on the market value of contract-granting firms. This study is important to researchers, professionals, and policy makers as it provides empirical evidence from the capital market that outsourcing is considered to be a value-added business exchange for contract-granting firms. Research findings indicate positive and significant market value gains for smaller vs. larger firms and service vs. nonservice industry firms. The significant effects observed in this study are explained by the existence of information asymmetry in the capital market for smaller firms and service firms, and by the relatively higher investment made by service firms in information technology. This study contributes to accounting research by examining the importance of providing financial report users with nonfinancial forward-looking information concerning management's strategic decisions, such as the decision to outsource IS functions. Additionally, the current study complements and extends extant IS outsourcing research, as it integrates efficient market and capital market theory into ongoing investigations aimed at identifying the underlying determinants of IS outsourcing decisions.
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Mokrini, Asmae El, and Tarik Aouam. "A fuzzy multi-criteria decision analysis approach for risk evaluation in healthcare logistics outsourcing: Case of Morocco." Health Services Management Research 33, no. 3 (January 29, 2020): 143–55. http://dx.doi.org/10.1177/0951484820901668.
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Public–private partnerships in emerging countries are gradually considered a tool for growth development. One particular public–private partnership is that of outsourcing logistics in the healthcare sector. These partnerships provide several benefits for both private and public sectors but are generally associated with numerous risks that must be evaluated and subsequently managed. The aim in this paper is to develop a risk evaluation approach to rank risks when decision makers’ judgment is taken into consideration and where traditional risk evaluation techniques become less applicable. The proposed approach makes use of fuzzy multi-criteria decision analysis methods since they are efficient techniques to rank alternatives based on selected evaluation criteria and can accommodate human judgment and preferences. The approach treats predetermined risks like alternatives, and evaluation criteria are represented by areas of impact of the risks. To validate the approach, we applied it to a real case of logistics outsourcing to private service providers in a Moroccan public pharmaceutical supply chain. The ranking results obtained show that the two methods lead to some differences in ranking but are highly correlated. The obtained results support healthcare policy makers in setting priorities to effectively deploy preventive and mitigation efforts.
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Hodosi, Georg, Sanaz Manavi, and Lazar Rusu. "Risk Factors in IT Outsourcing and the Theories Decision Makers Use to Resolve Them." International Journal of Social and Organizational Dynamics in IT 3, no. 2 (April 2013): 41–54. http://dx.doi.org/10.4018/ijsodit.2013040103.
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In this paper the Risk Factors (RFs) in IT Outsourcing (ITO) theories from a service buyer perspective are explored. A comparative study about how Transaction Cost Theory (TCT), Core Competency Theory (CCT) and Agency Theory (AT) cover the RFs has been performed. A framework describing, how the theories cover the RFs has been developed and tested using a case study research methodology. The interviews with companies for testing the framework have been used to get an indication about which ITO theories the decision makers are using in their ITO. This study shows that TCT fully covers all RFs, AT covers almost all and CCT has the lowest coverage. The theories, which are used by the ITO decision makers, could only partially be answered. Risk handling could not be entirely mapped to the theories. Risk and risk mitigation were the main concerns for some of the interviewees, CCT for some others. This study recommends using both TCT and CCT for a successful ITO.
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Tjader, Youxu Cai, Jennifer S. Shang, and Luis G. Vargas. "Offshore outsourcing decision making: A policy-maker’s perspective." European Journal of Operational Research 207, no. 1 (November 2010): 434–44. http://dx.doi.org/10.1016/j.ejor.2010.03.042.
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IGNATIUS, JOSHUA, ADLI MUSTAFA, MUHAMAD JANTAN, CHEE PENG LIM, T. RAMAYAH, and JASMINE YEAP AI LEEN. "A MULTI-OBJECTIVE SENSITIVITY APPROACH TO TRAINING PROVIDERS' EVALUATION AND QUOTA ALLOCATION PLANNING." International Journal of Information Technology & Decision Making 10, no. 01 (January 2011): 147–74. http://dx.doi.org/10.1142/s0219622011004269.
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The practice of solely relying on the human resources department in the selection process of external training providers has cast doubts and mistrust across other departments as to how trainers are sourced. There are no measurable criteria used by human resource personnel, since most decisions are based on intuitive experience and subjective market knowledge. The present problem focuses on outsourcing of private training programs that are partly government funded, which has been facing accountability challenges. Due to the unavailability of a scientific decision-making approach in this context, a 12-step algorithm is proposed and tested in a Japanese multinational company. The model allows the decision makers to revise their criteria expectations, in turn witnessing the change of the training providers' quota distribution. Finally, this multi-objective sensitivity analysis provides a forward-looking approach to training needs planning and aids decision makers in their sourcing strategy.
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Rahman, Hanif Ur, Mushtaq Raza, Palwasha Afsar, Abdullah Alharbi, Sultan Ahmad, and Hashym Alyami. "Multi-Criteria Decision Making Model for Application Maintenance Offshoring Using Analytic Hierarchy Process." Applied Sciences 11, no. 18 (September 14, 2021): 8550. http://dx.doi.org/10.3390/app11188550.
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The phenomenon of Global Software Development (GSD) has attracted the interest of businesses all over the world. It brings together partners from various national and corporate cultures to develop applications with numerous advantages, including access to a vast labor pool, cost savings, and round the clock growth. GSD, on the other hand, is technologically and organizationally diverse and poses a number of obstacles for the development team, such as geographical distance, cultural differences, communication and language barriers. Global services are provided by selecting one of the suitable global delivery options, i.e., the onshore model, nearshore model or offshore model. Experts typically choose one of the models based on the nature of the project and the needs of the customer. However, the vendors and clients lack an adequate decision support system that can assist them in making suitable sourcing decisions. Therefore, the current study presents a Multi-Criteria Decision Making (MCDM) model for offshore outsourcing decisions of application maintenance. To achieve our target, two systematic literature reviews were conducted that explored a list of 15 influencing factors. The identified factors were further evaluated in the outsourcing industry by performing an empirical study that resulted in a list of 10 critical success factors. We propose a sourcing framework based on the critical success factors that can assist decision makers in adopting a suitable sourcing strategy for the offshore outsourcing of application maintenance. In order to further enhance the decision-making process, the MCDM model is developed based on the Analytic Hierarchy Process (AHP). The MCDM model is evaluated with three case studies in highly reputable international companies, including IBM Stockholm, Sweden, Vattenfall AB, Stockholm, Sweden and a London based company in the United Kingdom. The outcomes of these case studies are further reviewed and validated by the outsourcing specialists in other firms. The proposed model is used as a decision support system that determines the ranking of sourcing alternatives and suggests the most suitable option for application maintenance offshoring.
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Et.al, Glory Urekwere Orlu. "Outsourcing Provider Selection Model in Public Sector." Turkish Journal of Computer and Mathematics Education (TURCOMAT) 12, no. 3 (April 11, 2021): 1832–41. http://dx.doi.org/10.17762/turcomat.v12i3.1012.
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In recent times, decision outsourcing IT activities in the public sector is fast evolving in the world at large. This fact has been considered as a high level of strategic measure used in different industries particularly in the public sector where internal IT expertise is found wanting in the area of implementing IT activities to improve the performance growth of the public sector. Although outsourcing IT activities are beneficial to IT Practitioners, Decision-makers, and heads of departments, but the fact remains that choosing the right IT Provider is still a challenge that is inevitable to be avoided as they continue to make the mistake of choosing the wrong IT Provider during outsourcing provider selection. This study considered mainly the approach undertaken towards achieving the key objective of this paper which is the development of the proposed model that can support IT practitioners in outsourcing selection practices. However, this paper considered an appropriate technique that can be implemented in an uncertain and complex situation. Having reviewed thoroughly five existing techniques used in the prior researchers’ work, in-depth understanding on this justified that, fuzzy logic and its particular tools used Fuzzy Inference Systems (FIS) was found to be considered efficient and suitable for outsourcing selection practices in an uncertain and complex situation. Also, a pilot study and empirical study were conducted to ascertain the validity of the instruments (questionnaire data). The pilot study consists of 33 respondents while the empirical study consists of 133 respondents. Finally, the reliability test was carried out to determine the validity and reliability of the six influential factors selected, thereafter the proposed model was developed. The application of the developed Decision Outsourcing Selection Model (DOSM) will aid the IT Practitioners in their decision outsourcing Selection practices.
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Zandi, Gholamreza, Thee Kok Chuan, and Shaheen Mansori. "A Study of Accounting Outsourcing Decision: The Case of Malaysian SMEs." International Journal of Financial Research 10, no. 5 (June 10, 2019): 153. http://dx.doi.org/10.5430/ijfr.v10n5p153.
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Nowadays the costs of doing business have been increased and become more competitive than before. Hence, many organizations have been thinking to outsource activities which are not the core competence of the organization such as finance and accounting, information technology, human resources, and any other back-office activities. This research provides an understanding of the factors influencing of the organization intends to outsource the finance and accounting activities decision for the Small and Medium Enterprises (SMEs) in Malaysia. The research uses a qualitative exploratory and explanatory method. The qualitative data collected via individual interviews with Malaysia Small and Medium Enterprises’ decision makers and a higher level of management group which comprises of individual or organizations. The results suggest that Malaysian SMEs would shorten their decision-making process to make a business process outsource if they can see the success story of other organizations.
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Lisse, Stephen. "Applying system dynamics for outsourcing services in design-build projects." Journal of Project, Program & Portfolio Management 4, no. 2 (January 15, 2014): 20. http://dx.doi.org/10.5130/pppm.v4i2.3196.
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This study analysed a system dynamics model for outsourcing engineering services in a large and complex project organisational structure that is typically associated with design-build (DB) project delivery. A literature review indicated that most of the reviewed papers implied the project engineering resources were totally insourced or the authors were silent regarding any resources that were outsourced. Comprehensive sensitivity analysis of various model variables was performed, which indicates that the quality and productivity of the outsourced resources as well as the initial number of assigned experienced engineers significantly impacted the amount and timing of engineering work completion. Project outcomes were also impacted by varying the number of initial and changed engineering tasks. The decision to insource/outsource engineering work on DB projects may have significant cost and time impacts, which should be considered by decision makers.
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Steinberg, David Charles. "The Business Model of e-Learning in UK Higher Education." Industry and Higher Education 18, no. 3 (June 2004): 187–98. http://dx.doi.org/10.5367/0000000041517480.
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E-learning is not just an application of technology to teaching, but a new business model for higher education. By approaching e-learning as a business model, educational policy makers can begin to appreciate the scope of the integrated technology and services required to run a successful online degree programme or a blended programme that includes online courses. A strategic consideration should be whether to develop and/or deliver components of an e-learning business model solely with in-house resources or with one or more outsourcing arrangements. An e-learning business model framework is presented to help policy makers develop a unique model for their own institution. An e-learning ‘revenue engine’ is presented to tie the framework's components together conceptually. Finally, a set of e-learning outsourcing decision factors is presented, including an analysis of an internal versus outsourced cost structure. It is argued that UK HEIs should outsource components of their e-learning business model to realize greater operating and cost efficiencies.
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Al-Hawary, Sulieman Ibraheem, and Mohammad Sultan Al-Syasneh. "IMPACT OF DYNAMIC STRATEGIC CAPABILITIES ON STRATEGIC ENTREPRENEURSHIP IN PRESENCE OF OUTSOURCING OF FIVE STARS HOTELS IN JORDAN." Business: Theory and Practice 21, no. 2 (September 11, 2020): 578–87. http://dx.doi.org/10.3846/btp.2020.11895.
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This research aims to investigate whether outsourcing mediates the impact of dynamic strategic capabilities on strategic entrepreneurship. The population of the research consists of top managers in five stars hotels. A sample of 215 respondents were selected for the research in which 186 questionnaires were valid for statistical analysis. Structural equation modelling (SEM) was used to test the hypotheses of the research. The results of the research indicate that outsourcing does not mediate the relationship between dynamic strategic capabilities and strategic entrepreneurship. All the dimensions of dynamic strategic capabilities have a statistical impact on strategic entrepreneurship, while the dynamic strategic capabilities dimension all affect outsourcing except the seizing capability. Based on the research results, managers and decision-makers have to focus on innovation functions by enhancing the role of knowledge management and R&D activities, as well as concentrate on employees training programs.
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Young, Suzanne. "Outsourcing: two case studies from the Victorian public hospital sector." Australian Health Review 31, no. 1 (2007): 140. http://dx.doi.org/10.1071/ah070140.
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Outsourcing was one process of privatisation used in the Victorian public health sector in the 1990s. However it was used to varying degrees and across a variety of different services. This paper attempts to answer the questions: Why have managers outsourced? What have managers considered when they have decided to outsource? The research was carried out in a rural hospital and a metropolitan network in Victoria. The key findings highlight the factors that decision makers considered to be important and those that led to negative outcomes. Economic factors, such as frequency of exchange, length of relationships between the parties, and information availability, were often ignored. However, other factors such as outcome measurability, technology, risk, labour market characteristics and goal conflict, and political factors such as relative power of management over labour were often perceived as important in the decision-making process. Negative outcomes from outsourcing were due to the short length of relationships and accompanying difficulties with trust, commitment and loyalty; poor quality; and excessive monitoring and the measurement of outcomes.
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Hamed MoosaviRad, Seyed, Sami Kara, and Suphunnika Ibbotson. "Impact of international outsourcing on the value adding of industries." International Journal of Logistics Management 25, no. 3 (November 4, 2014): 463–86. http://dx.doi.org/10.1108/ijlm-05-2013-0061.
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Purpose – The value adding of each industry represents the value difference between the outputs and inputs of that industry. The purpose of this paper is to investigate the effect of international outsourcing on the value adding of industries. Design/methodology/approach – Input output analysis and linear programming are used as for the research methodology. Australian Motor Vehicle and Parts Manufacturing (AMVPM) industry as an outsourcer and its main suppliers were selected for ten alternative international outsourcing scenarios in a case study. Findings – In all international outsourcing scenarios except the baseline scenario, the reduction in the value adding of Australia would be approximately three times more than the value adding reduction of the AMVPM industry. Moreover, the international outsourcing ratio has negative relationships with the value adding of the Australian industries and positive relationship with the international industries. Finally, it was found that the degree of supplier's dependency on the orders of the outsourcer effects the percentage reduction of supplier's value adding. Research limitations/implications – The aggregated data and the uncertainties in the technical coefficients are the main limitations of this research. The social and environmental costs, other tangible and intangible costs, as well as benefits of international outsourcing need to be further analysed in future research. Practical implications – This study would help decision makers at the macro level to analyse and control the effect of international outsourcing on the value adding of their economies. Originality/value – This study expands the current research at the industry level of international outsourcing by quantifying the effect of international outsourcing upon the value adding of all respected industries.
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Lu, Fuqiang, Hualing Bi, Min Huang, and Shupeng Duan. "Simulated Annealing Genetic Algorithm Based Schedule Risk Management of IT Outsourcing Project." Mathematical Problems in Engineering 2017 (2017): 1–17. http://dx.doi.org/10.1155/2017/6916575.
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IT outsourcing is an effective way to enhance the core competitiveness for many enterprises. But the schedule risk of IT outsourcing project may cause enormous economic loss to enterprise. In this paper, the Distributed Decision Making (DDM) theory and the principal-agent theory are used to build a model for schedule risk management of IT outsourcing project. In addition, a hybrid algorithm combining simulated annealing (SA) and genetic algorithm (GA) is designed, namely, simulated annealing genetic algorithm (SAGA). The effect of the proposed model on the schedule risk management problem is analyzed in the simulation experiment. Meanwhile, the simulation results of the three algorithms GA, SA, and SAGA show that SAGA is the most superior one to the other two algorithms in terms of stability and convergence. Consequently, this paper provides the scientific quantitative proposal for the decision maker who needs to manage the schedule risk of IT outsourcing project.
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Hoanca, Bogdan, and Richard Whitney. "Taking a Byte of Telephony Costs." Journal of Cases on Information Technology 12, no. 4 (October 2010): 18–34. http://dx.doi.org/10.4018/jcit.2010100102.
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In 2006, the University of Alaska Anchorage (UAA) upgraded the telephone system at its main campus in Anchorage from a traditional private branch exchange (PBX) architecture to a Voice over Internet Protocol (VoIP) system. This case describes the organizational decisions that led to the change; the scope and the process of upgrading; and the current status of the new VoIP system. The actual migration to VoIP was completed less than a year after the start of the project. The transition process went smoothly. User satisfaction with the performance of the VoIP system is very high. Based on extensive interviews with decision makers and the technical personnel involved, this case also describes financial considerations (including “creative” ways to stretch a limited budget), outsourcing considerations, training related issues, as well as lessons learned.
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Huang, Jih-Jeng, and Gwo-Hshiung Tzeng. "NEW THINKING OF MULTI-OBJECTIVE PROGRAMMING WITH CHANGEABLE SPACE – IN SEARCH OF EXCELLENCE." Technological and Economic Development of Economy 20, no. 2 (June 27, 2014): 254–73. http://dx.doi.org/10.3846/20294913.2013.860931.
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Multi-objective programming (MOP) is a branch of mathematical programming that has been widely used to deal with various practical problems. With the introduction of new technologies and business models, a paradigm shift in optimization problems is gradually taking place from fixed to flexible optimization. For example, many organizations use outsourcing or business process reengineering (BPR) to improve or upgrade their objective and technological coefficients to achieve better performance. Hence, traditional MOP models should be extended from the concept of fixed to changeable parameters, called changeable space, which includes decision space and objective space. In this paper, we propose three kinds of MOP model with changeable parameters to help decision-makers achieve the desired point (aspiration level), which is better than the ideal point.
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Talpeanu, Andreea Daniela Pana, and Lazar Rusu. "Influential Factors in IT Outsourcing Relationship in a Swedish Municipality." International Journal of Innovation in the Digital Economy 8, no. 3 (July 2017): 1–17. http://dx.doi.org/10.4018/ijide.2017070101.
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Information Technology Outsourcing (ITO) has generated considerable interest within Information Systems (IS) research as a consequence of its benefits in terms of cost efficiency and freedom to focus on core capabilities. This study covers the area of ITO in the public sector, specifically, in Swedish Municipalities where ITO has become a mainstream strategy. The influential ITO factors of the post-contract stage of an ITO relationship are examined and debated in light of existent research literature. The research is based on a case study of a Swedish Municipality and a direct IT vendor. A thematic analysis brings light upon three new ITO influential factors which are: (1) mutual understanding and long-term engagement; (2) Multi-sourcing, and (3) Communication between Municipalities, together with other seven factors present in the research literature that have an influence on the ITO relationship. The findings of this study can support ITO decision-makers from Swedish municipalities in improving the ITO relationship between their organizations and IT vendors.
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Akter, Nasrin, Prem Chhetri, and Shams Rahman. "Understanding the usage patterns, practices and decision process of third party logistics outsourcing in Bangladesh." Journal of Global Operations and Strategic Sourcing 12, no. 3 (November 1, 2019): 329–54. http://dx.doi.org/10.1108/jgoss-08-2018-0027.
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Purpose Bangladesh is becoming one of the emerging destinations for global outsourcing. However, little is known about the usage patterns of third party logistics (3PL) outsourced services. The purpose of this paper is to examine the extent of 3PL usage, the organisational factors affecting 3PL usage, impacts of 3PL and the future trend of 3PL usage in Bangladesh. Design/methodology/approach A survey questionnaire is used to collect data against a number of items pertaining to the extent of 3PL use and its impact on performance. A total of 1,000 organizations were randomly selected from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) database. The survey resulted in 243 responses, out of which 150 organisations have adopted 3PL services. A chi-square test is conducted to assess statistical significance of the hypothesized relationships among the variables relating to 3PL decision-making process and a regression analysis is conducted to assess the strength of those variables to predict the impact of 3PL usage. Findings Overall, the results reveal that 3PL services are extensively adopted by businesses (63 per cent) in Bangladesh. Freight forwarding, order fulfilment and shipment consolidation are the top three most frequently outsourced 3PL services. However, the extent of 3PL use varies between manufacturing and service organisations. Results also suggest that logistics system performance is the key predictor of the overall satisfaction of 3PL users. Research limitations/implications The key limitation of this study is that both manufacturing and services firms are collectively analysed. Future research will separately investigate the outsourcing 3PL services requirements for two categories of firms. Characterisation of 3PL usage patterns and their drivers has practical significance and strategic implications for logistics practitioners and decision-makers who opt for global outsourcing. Originality/value The implementation in the context of Bangladesh to provide an evidence base to formulate business strategies for increasing the adoption of 3PL usage is novel.
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Wu, Yong, Junlin Duan, Tao Dai, and Dong Cheng. "Managing Security Outsourcing in the Presence of Strategic Hackers." Decision Analysis 17, no. 3 (September 2020): 235–59. http://dx.doi.org/10.1287/deca.2019.0406.
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Nowadays, firms tend to outsource security operations to professional managed security service providers (MSSPs) as a result of the sophistication of strategic hackers. Thus, how an MSSP makes security decisions according to a strategic hacker’s action is worth researching. Constructing a contract theory model, this paper examines the interaction between an MSSP and a strategic hacker based on both parties’ characteristics. We find that the hacker will give up less valuable information assets, and thus not all information assets are worth protecting for the MSSP. For both parties, their optimal efforts do not necessarily increase with their respective efficiency, and the firm’s reputation loss has an opposite effect on its respective efforts. Moreover, we distinguish two types of security externalities including MSSP-side externality and hacker-side externality, and we find that the two types of security externalities have different effects on both parties’ optimal efforts and expected payoffs. We also find that as a result of the trade-off between the integration effect of the MSSP and the effect of MSSP-side externality, firms are still willing to outsource their security operations to the MSSP even when an MSSP devotes fewer security efforts than those of firms that manage security in-house. Last, we extend our base model from two aspects to generalize the main results.
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Dietl, Helmut M., Anil Özdemir, and Nicolas Schweizer. "Outsourcing sports sponsorship activities: a multi-theoretical approach." Sport, Business and Management: An International Journal 7, no. 1 (March 13, 2017): 77–96. http://dx.doi.org/10.1108/sbm-09-2014-0041.
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Purpose The purpose of this paper is to understand and explain why some professional sports organizations outsource their sponsorship-related activities to sports marketing agencies, whereas others purposely retain these activities in-house. Design/methodology/approach The paper applies transaction cost economics (TCE) and the resource-based view (RBV) to outsourcing of sports sponsorship activities. It examines the extent determinants descending from these theories influence the sourcing choice of professional sports organizations. Findings This paper argues that determinants derived from TCE and the RBV are useful to understand the factors likely to influence an outsourcing decision and to analyze which sponsorship-related activities are more or less likely to be outsourced. However, these determinants are insufficient to shed light on why sports organizations arrive at different conclusions about their internal and external environments. With recourse to contingency theory, the authors propose two additional contingencies that affect the sourcing decision: a sport organization’s size and its degree of professionalism. This integrative conceptual framework improves the understanding of sports sponsorship outsourcing, makes several propositions, and paves the way for future empirical research in sports sponsorship. Originality/value This is the first paper to apply classical theoretical concepts to outsourcing sports sponsorship activities. As a conceptual paper, it hopes to stimulate further research on outsourcing in sports sponsorship and on the relationship between sports organizations and sports marketing agencies.
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Lu, Qing, Mark Goh, Miti Garg, and Robert De Souza. "Remanufacturing in Asia: location choice and outsourcing." International Journal of Logistics Management 25, no. 1 (May 6, 2014): 20–34. http://dx.doi.org/10.1108/ijlm-10-2012-0125.
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Purpose – Remanufacturing is a process whereby value from old products is recovered by replacing and recovering used components to bring such products to a new or like-new state. Today, both original equipment manufacturers (OEMs) and third parties are engaged in remanufacturing activities, investing in many locations throughout Asia. The purpose of this paper is to examine the reasons for initiating remanufacturing activities as well as the location determinants for the remanufacturing sector in Asia. Design/methodology/approach – The authors conduct a multiple case study. Triangulation is applied to gain objective views from interviewing three OEMs, one logistics firm, and three local small enterprises. Real options theory is the theoretical lens used to examine the location choice of the OEMs. Findings – Firms engaged in remanufacturing tend to co-locate facilities with existing manufacturing facilities, and those investing in new sites for remanufacturing view the regulatory environment as the most important factor. OEMs tend to leverage on existing manufacturing facilities or third-party remanufacturers to reduce their cost of commitment when starting remanufacturing at new locations. Research limitations/implications – The sample size is still small for the generalization of the results. Further empirical study is needed to test the propositions from this paper. Practical implications – This paper could assist managers and decision makers in the multinational corporations to design appropriate logistics-related solutions for remanufacturing in Asia. Originality/value – The authors work contributes to the theory on remanufacturing location determinants. It shows that OEMs and third-party remanufacturers can have a collaborative relationship instead of the commonly assumed competitive one, which is currently not found in the literature.
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Martins, Ana Lucia, Henrique Duarte, and Daniela Costa. "Buyer–supplier relationships in IT outsourcing: consultants’ perspective." International Journal of Logistics Management 29, no. 4 (November 12, 2018): 1215–36. http://dx.doi.org/10.1108/ijlm-11-2017-0288.
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Purpose Supply chain relationships have often been analysed from the macro-perspective of the companies involved, but there is less evidence of how relationships relate to the micro-perspective of persons involved. The purpose of this paper is to investigate, in IT outsourcing (ITO), how the buyer–supplier relationship type strengthens buyer performance from the perspective of consultants. Design/methodology/approach IT consultants were surveyed, and analysis was performed considering the aggregated values of variables that characterise buyer–supplier relationships adjusted to ITO. Findings The results show that strategic relationships are associated with higher supplier investment in relational management than in transactional ones. Similarly, in this type of relationship, higher levels of trust are linked to the recognition of more activities shared between parties involved than in transactional relationships. The improvement of supplier development by buyers was also found to improve buyers’ performance. Research limitations/implications The model proposed here was developed for nonspecific industries but tested in the context of ITO. Further research should be undertaken to broaden generalisability. Originality/value The paper provides an understanding of the influence of the buyer–supplier relationship type on buyer performance based both on relational management and, more specifically, how the formal dimension of supplier development can also contribute to performance. ITO is increasing worldwide, and relational management affects outsourcing outcomes in broad supply chain integration. This analysis is usually visited from buyer and supplier perspectives using decision makers. This paper assesses it from the perspective of consultants.
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Sun, Dingqiang, Michael Rickaille, and Zhigang Xu. "Determinants and impacts of outsourcing pest and disease management." China Agricultural Economic Review 10, no. 3 (September 3, 2018): 443–61. http://dx.doi.org/10.1108/caer-01-2017-0011.
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Purpose The purpose of this paper is to investigate the determinants and impacts of outsourcing pest and disease management on rice production in China. Design/methodology/approach A multinomial endogenous treatment effects model which accounts for selection bias was used. Findings The results show that outsourcing decisions are driven mainly by the size of the farm, the age of the household head and other household characteristics. Further, the authors find that outsourcing labor for pest and disease control has no significant effect on pest control cost and rice yields, though it reduces the number of pesticide applications. Conversely, outsourcing of professional services can increase rice yields by 4.1 percent, and at the same time it increases pest and disease control costs by 50.6 percent. However, it is found that outsourcing of professional services exerts no significant impact on the farm profitability. Practical implications This study suggests that households with large farm size are more likely to outsource professional services and, therefore, service providers and governments should target those farmers to provide incentives and create greater awareness of the benefits from the outsourcing of professional services. Moreover, the increase in yields along with the government subsidy justifies the outsourcing of professional services by farmers. However, service providers and policy makers have a lot of leeway to come up with cheaper methods for pest and disease management in rice production. Originality/value This study is the first attempt to simultaneously evaluate the determinants and impacts of outsourcing pest and disease management on rice production in China.
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Poleto, Thiago, Thárcylla Rebecca Negreiros Clemente, Ana Paula Henriques de Gusmão, Maisa Mendonça Silva, and Ana Paula Cabral Seixas Costa. "Integrating value-focused thinking and FITradeoff to support information technology outsourcing decisions." Management Decision 58, no. 11 (July 6, 2020): 2279–304. http://dx.doi.org/10.1108/md-09-2019-1293.
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PurposeThe information technology (IT) outsourcing (ITO) decision is a key issue in strategic and operational management and is considered a main critical factor influencing successful organizational performance and technology assessment. The purpose of this paper is to propose a framework combining value-focused thinking (VFT) methodology and the FITradeoff method to support decisions regarding ITO.Design/methodology/approachThis study answers the following questions: How to identify, in a structured way, the objectives that should be considered in an ITO decision process in a changing environment? How to identify new IT services to be outsourced from the established objectives? The VFT method is recommended in this case to structure and model the problem. Moreover, the FITradeoff multicriteria method was considered in this study to support the evaluation and prioritization of IT services in an ITO decisionFindingsThe framework provides promising results for ITO decisions. This study revealed that a lack of strategic and fundamental objectives is a critical issue in making ITO decisions. Although the VFT methodology is subjective in nature, it promotes a better understanding of goals and values, and FITradeoff allows the decision-maker to make comparisons of consequences based on his/her preferences.Research limitations/implicationsThe recommendations of the study are restricted to the case study and cannot be generalized. In addition, applying the method requires attention in determining the criteria used for outsourcing IT.Practical implicationsThe strategic analysis of ITO provides a holistic view of the current situation since (i) the VFT methodology enables the IT manager to generate new alternatives to assist future decisions and (ii) FITradeoff has been demonstrated as a suitable option to evaluate ITO decisions.Originality/valueTo the best of our knowledge, this is the first paper to utilize a problem structuring method (VFT) to identify criteria and alternatives based on the organizational values and objectives. This is integrated with a multicriteria method that uses partial information and may consequently lead to fewer inconsistencies (FITradeoff) in the context of ITO.
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Shi, Honghua, and Yaodong Ni. "Multiple strategies for supply chain to recover from major disruptions." Journal of Intelligent & Fuzzy Systems 40, no. 5 (April 22, 2021): 9669–86. http://dx.doi.org/10.3233/jifs-202176.
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Today’s supply chains have a greater likelihood of disruption risks than ever before. Sometimes, a lengthy recovery period is needed for supply chains to return to regular operation after being disrupted. During the recovery time window, how to increase the performance of supply chains is not sufficiently studied. Furthermore, the works considering parameter uncertainty arising from the lack of historical data are also limited. To address these problems, we formulate the recovery scheduling of supply chains under major disruption as mixed-integer linear programming models. In the presented models, outsourcing strategy and capacity expansion strategy are introduced to increase the service level of the supply chain after the disruption. The effects of disruption risks on supply chain performance are quantified using uncertainty theory in the absence of historical data. A set of computational examples illustrate that cost may increase markedly when more facilities are disrupted simultaneously. Thus, decision-makers have to pay close attention to supply chain disruption management and plan for disruption in advance. Moreover, the results suggest that outsourcing strategy is more useful to reduce cost when a higher service level is required.
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HormozzadehGhalati, Hajar, Alireza Abbasi, and Abolghasem Sadeghi-Niaraki. "Optimal multi-product supplier selection under stochastic demand with service level and budget constraints using learning vector quantization neural network." RAIRO - Operations Research 53, no. 5 (October 9, 2019): 1709–20. http://dx.doi.org/10.1051/ro/2018096.
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In today’s competitive marketplace demand, evaluation and selection of suppliers are pivotal for firms, and therefore decision makers need to select suppliers and the optimal order quantities when outsourcing. However, there is uncertainty and risk due to lack of precise data for supplier selection. Uncertainty can impose shortage or overstocks, because of stochastic demand, to firms; in this case, considering inventory control is essential. In this research, an appropriate spatial model is developed for a multi-product supplier selection model with service level and budget constraints. Learning Vector Quantization Neural Network is used to find the optimal number of decision variables with the goal of maximizing the expected profit of supply chains. By analyzing a practical example and conducting sensitivity analysis, we find that corporate profit will be maximized if the optimal integration of suppliers and the optimal order quantities from each supplier is determined. In addition, budget and service level should be considered in the process of finding the best result.
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Oshri, Ilan, and M. N. Ravishankar. "On the attractiveness of the UK for outsourcing services." Strategic Outsourcing: An International Journal 7, no. 1 (February 11, 2014): 18–46. http://dx.doi.org/10.1108/so-11-2013-0022.
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Purpose – Outsourcing is in a new era: an era of value-adding services, innovation and transformation. An era that shifts competition to skills and expertise where the main focus of key players in the industry is on the strategic impact of outsourcing services. As the outsourcing landscape is changing, so competition between countries for outsourcing work is reconstructing. It is no longer competition for low costs, but a search for superior skills, both technical and managerial, that provides the strategic guidance and operational excellence needed in the twenty-first century. While the professional and academic literature has extensively studied the comparative advantage of low-cost locations such as India, we know very little about the attractiveness of Western countries, such as the UK, for outsourcing services. To contribute to this end, the purpose of this paper is to examine the UK attractiveness in light of three key trends in the outsourcing industry: the maturity of the outsourcing industry drives more client firms to seek impact on business and strategic performance from their vendors; client firms and vendors deploy complex sourcing models that increase the importance of sourcing managerial capabilities, such as relationship management, vis-à-vis technical and delivery capabilities; locations with promising entry points to lucrative markets are becoming attractive for outsourcing investments as part of the firm's growth strategy. Design/methodology/approach – The empirical base of this study is based on a comparative analysis of eight European destinations (UK, Germany, France, The Netherlands, Spain, Ireland, Czech Republic and Poland) to conclude that the UK, as a talent-base, value-adding country that also offers advanced sourcing capabilities, has positioned its economy to attract investments from both outsourcing vendors and client firms. While the authors acknowledge the relative high-cost base of the UK economy, they assert that the high service standards, access to skills, entry point to mainland Europe and the USA, government support and supportive infrastructure are superior value propositions offered by the UK in the context of outsourcing services. Findings – The findings of this study highlight the contribution of Western economies to outsourcing and their fairly strong comparative position to specific line of services such as contact centers, research and development and specific business process outsourcing services. Research limitations/implications – The main limitation of this study is the use of a country attractiveness framework which has been mainly used for low-cost countries. The authors therefore acknowledge the need to develop a country attractiveness framework which is suitable for Western countries. Practical implications – This study offers decision makers an extensive tool to assess their outsourcing investments by considering both low-cost and Western countries based on the value expected from each investment. Originality/value – This is the first study on the attractiveness of a Western country, such as the UK, which the authors defined as a talent-based, value-adding and advanced sourcing (TAVAAS) country. Through the examination of its comparative attractiveness the authors highlight the potential of the UK and many other Western countries such as USA, Germany or Canada to attract outsourcing investments.
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Loska, David, and James Higa. "The risk to reconstitution: supply chain risk management for the future of the US Air Force’s organic supply chain." Journal of Defense Analytics and Logistics 4, no. 1 (April 29, 2020): 19–40. http://dx.doi.org/10.1108/jdal-03-2019-0005.
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Purpose The future retirement of US Air Force (USAF) legacy weapon systems (WSs) removes their associated funding from within the Air Force Working Capital Fund and their parts from its organic supply chain inventory. The trending outsourcing of product support to contracted logistics support and its potential long-term consequences to the USAF government-owned, government-operated, organic supply chain and the reconstitution capabilities it enables in the USAF’s organic industrial base, suggests the need to assess its risks. Although there is an existing body of research into the risks of outsourcing the USAF’s industrial repair, and federal legislation such as Core 50/50 laws enacted to institutionalize its risk management, there is comparatively little research into the outsourcing risks to the long-term viability of the supply chain on which that repair capability is dependent. The aim of this research is to fill that research gap by assessing and modeling those risks. This research concludes by providing several future research directions that may be evaluated to provide more detail. Design/methodology/approach Leveraging a conceptual model derived from research and a multi-criteria analysis framework to assess supply chain risk. Quantifying the predicted impact of retirements on funding and inventories of unique parts. Modeling the potential risk due to WS retirement. Findings Results indicated long term enterprise risks to the Air Force’s supply chain correlated to the retirement of WSs and their associated funding and spare parts inventory. Originality/value This research provides an in-depth evaluation of the USAF’s supply chain to assess the holistic risk of product support outsourcing and its long-term impacts on viability by using resource-based view and contingency theory as theoretical underpinnings. In addition, insights and implications for defense supply chain managers and decision-makers.
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Morhulets, Oksana B., and Olena V. Nyshenko. "METHOD OF ASSESSMENT OF ENTERPRISE READY FOR OUTSOURCING IMPLEMENTATION." Management 30, no. 2 (February 11, 2020): 26–37. http://dx.doi.org/10.30857/2415-3206.2019.2.2.
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Introduction. Today Ukrainian enterprises operate under difficult economic conditions, which have developed against the background of the constant increase in the cost of raw materials, energy tariffs, changing geopolitical situation, difficult political situation in the country, which is why most of the enterprises struggle for survival instead of development. Against this background, competition with foreign producers is aggravated, accompanied by a narrowing of the domestic market.Given the complex economic conditions of Ukrainian enterprises, their success today depends on the effectiveness of management in these conditions. Businesses require a modern business process management tool designed to adapt to new challenges and find ways to mitigate the effects of external factors. The economic development of the enterprise is conditioned by the progress of information technologies, the emergence of innovative forms of management, new principles of division of labor, etc. Changes in the management of business entities now require new scientific and methodological approaches, from which the enterprise is regarded as a set of business processes. One of the modern ways of improving the business system is the attraction of external contractors, which is solved by the introduction of outsourcing and allows to increase the efficiency of the enterprise and its competitiveness in the market.Hypothesis. Assessing the readiness of an enterprise to implement outsourcing provides validity of the management decision on outsourcing of business processes and helps to increase the efficiency of utilization of the enterprise's potential.The purposeof this article is to develop a methodological approach to assessing the degree of readiness of the enterprise to implement business process outsourcing to improve the efficiency of the enterprise in the current economic environment and to strengthen its competitive position in the domestic and international markets.Research methods. The methodological basis of the research is a system of general scientific and special methods, the main of which are: dialectical approach, methods of classification and systematization, analysis and synthesis, statistical and logical analysis, concretization, expert assessments and economic and mathematical modeling.Results. A methodical approach to assessing the degree of readiness of an enterprise to use outsourcing in business process management is offered, which, unlike the existing ones, makes it possible to substantiate the outsourcing decision taking into account the existing potential of the enterprise with a greater degree of certainty.Conclusions. As a result of the research, the problem of scientific and methodological substantiation of the enterprise's readiness for implementation of business process outsourcing at the enterprise was solved. This methodological approach enables the management of a number of indicators and the appropriate scale to assess the degree of readiness – the sufficiency of the enterprise's capacity to implement outsourcing and to overcome the risks associated with it. The proposed approach enhances the effectiveness of the management decision to outsource, is versatile and can be used in the practice of any enterprise that plans or already uses outsourcing in business.
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Hodosi, Georg, Lazar Rusu, and Seungho Choo. "A Risk Based View of Influential Factors in IT Outsourcing Relationship for Large Multinational Companies." International Journal of Social and Organizational Dynamics in IT 2, no. 3 (July 2012): 29–47. http://dx.doi.org/10.4018/ijsodit.2012070103.
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Information Technology Outsourcing (ITO) is well spread among large Multinational Companies (MNCs) in Europe, and it is expected to increase even more. The authors’ focus is the service buyer company who needs a well working relation with its ITO supplier for handling emergent issues, daily operation and events that have not been foreseen. In the last years, an increasing attention has been paid to improve ITO relationship. Reviewing the research literature, they have not found any studies about Influential Factors (IFs) that could improve the ITO relationship, nor, how risk factors are interrelated to ITO relationship. Therefore, the authors address this issue by providing 15 IFs that could improve the ITO relationship for large MNCs and their providers and could help the service buyers companies’ to concentrate on these IFs. Additionally, the authors developed a framework that could support the ITO decision makers in both mitigating the risks and improving the ITO relationship.
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B, Karthik, Rakesh D. Raut, Sachin S. Kamble, Manoj Govind Kharat, and Sheetal Jaisingh Kamble. "Decision support system framework for performance based evaluation and ranking system of carry and forward agents." Strategic Outsourcing: An International Journal 8, no. 1 (February 16, 2015): 23–52. http://dx.doi.org/10.1108/so-02-2015-0008.
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Purpose – The purpose of this paper is to present a research model that explore strategic outsourcing practices for sustainable competitive advantages. In this paper, a decision support system (DSS) for sustainable performance measurement of carry and forward agents (CFAs) is proposed. Design/methodology/approach – The importance of seven criteria as a means of selecting the best CFA for warehouses under the aspect of sustainable environment is analyzed. The criteria are compared and ranked using analytic hierarchy process (AHP) with the combined assistance of literature review and expert opinions. This study makes use of unstructured interviews of Regional Distribution Manager and senior strategic leaders of the firms. Findings – This paper discusses how strategic outsourcing can help firm to achieve desired business outcomes. The selection of best CFA gives a direction to the company to move toward excellence and provides the key areas to work upon to achieve competitive advantage. The main contribution of this paper includes modeling the performance evaluation problem within the context of a sustainable supply chain based on triple bottom line (TBL) concept. Research limitations/implications – The identified selection criteria are bound with Indian transportation and logistics industry. Further, it is suggested to conduct a real-life application of this study to other companies from different countries, to obtain criteria based on globally acceptable norms. The results may yield the network-specific evaluation criteria and their evaluations. Practical implications – The developed excel-based tool could be used to record the inspection data, compare the CFAs and determine the best CFAs on the basis of selected criteria. With the help of this tool, CFAs know their position and ranking among all the CFAs and the focus areas they need to work upon to perform well. The training module could be used to keep the CFA staff on the right track which is very essential in a typical manufacturing industry warehouse. The improved performance of CFAs will in turn help to improve the manufacturing process, thus maximizing the gains along with environmental benefits. Originality/value – This paper provides a priority of sustainable issues for evaluating the performance of the best CFA. The paper presents a strategic outsourcing model, which suggest both theoretical and managerial implications showing how to implement successful outsourcing practices in the global market by analyzing the performance of outsourcing partners, i.e. CFAs.
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Santos, Henrique P. Z., Bruno N. Guedes, and Claudio T. Cristino. "Optimal pricing structure in a maintenance contract: a game theory approach." Contributions to Game Theory and Management 13 (2020): 388–401. http://dx.doi.org/10.21638/11701/spbu31.2020.21.
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This essay presents a novel look at Murthy and Asgharizadeh's study (Murthy & Asgharizadeh, 1998). The authors developed a decision problem applied to maintenance outsourcing involving two decision-makers (players). If a consumer buys a product, then outsources the maintenance actions to a maintenance agent (agent) who offers two maintenance options; a maintenance contract that holds a penalty clause which is activated if the agent's time to repair is higher than a specified time, and services on-demand. The model yields equilibrium strategies based on the subgame-perfect Nash equilibrium. The agent defines the optimal pricing structure for the maintenance options considering the equipment's useful life while the consumer maximizes their expected payoff by choosing one maintenance option. Our contribution to this research branches in three ways. First, once the model deals with random variables, it represents a stochastic optimization problem. We propose a different approach to estimate this penalty time by using the Monte Carlo method. The second contribution is to present a formal definition of this decision problem as a game, emphasizing the game theory's components. Finally, we reinterpret the players' equilibrium strategies.
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Shah, Sayed Mehdi, Michael Lütjen, and Michael Freitag. "Text Mining for Supply Chain Risk Management in the Apparel Industry." Applied Sciences 11, no. 5 (March 5, 2021): 2323. http://dx.doi.org/10.3390/app11052323.
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Text mining tools are now widely used for the efficient management of information and resources in business, academic and research organizations. This paper provides a comprehensive overview of research articles on the application of text mining techniques in the field of Supply Chain Risk Management and the apparel industry. Research articles published between 2000 and 2020, were obtained from various journals through two online databases, i.e., SCOPUS and IEEE Xplore. Through a systematic approach following PRISMA guidelines, 370 research papers were screened, filtered and finally classified into three main areas: Supply Chain Risk Management and outsourcing in the apparel industry, application of text mining in Supply Chain Risk Management and application of text mining in the apparel industry. In this study, we have identified a comprehensive list of various available data sources for text mining, methodologies and risks associated with outsourcing in the apparel industry. We classify the gaps in expanding the application of text mining in the apparel industry’s Supply Chain Risk Management. Extracting useful information from online newspapers through text mining could vividly enhance the ability to monitor supply chain risks and provide the ability to link data to provide decision makers with the right information at the right time.
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Alégroth, Emil, Tony Gorschek, Kai Petersen, and Michael Mattsson. "Characteristics that affect preference of decision models for asset selection: an industrial questionnaire survey." Software Quality Journal 28, no. 4 (December 28, 2019): 1675–707. http://dx.doi.org/10.1007/s11219-019-09489-8.
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AbstractModern software development relies on a combination of development and re-use of technical asset, e.g., software components, libraries, and APIs. In the past, re-use was mostly conducted with internal assets but today external; open source, customer off-the-shelf (COTS), and assets developed through outsourcing are also common. This access to more asset alternatives presents new challenges regarding what assets to optimally chose and how to make this decision. To support decision-makers, decision theory has been used to develop decision models for asset selection. However, very little industrial data has been presented in literature about the usefulness, or even perceived usefulness, of these models. Additionally, only limited information has been presented about what model characteristics determine practitioner preference toward one model over another. The objective of this work is to evaluate what characteristics of decision models for asset selection determine industrial practitioner preference of a model when given the choice of a decision model of high precision or a model with high speed. An industrial questionnaire survey is performed where a total of 33 practitioners, of varying roles, from 18 companies are tasked to compare two decision models for asset selection. Textual analysis and formal and descriptive statistics are then applied on the survey responses to answer the study’s research questions. The study shows that the practitioners had clear preference toward the decision model that emphasized speed over the one that emphasized decision precision. This conclusion was determined to be because one of the models was perceived faster, had lower complexity, was more flexible in use for different decisions, and was more agile on how it could be used in operation, its emphasis on people, its emphasis on “good enough” precision and ability to fail fast if a decision was a failure. Hence, we found seven characteristics that the practitioners considered important for their acceptance of the model. Industrial practitioner preference, which relates to acceptance, of decision models for asset selection is dependent on multiple characteristics that must be considered when developing a model for different types of decisions such as operational day-to-day decisions as well as more critical tactical or strategic decisions. The main contribution of this work are the seven identified characteristics that can serve as industrial requirements for future research on decision models for asset selection.
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Sokolovska, Zoia, and Oleksii Dudnyk. "Devising a technology for managing outsourcing IT-projects with the application of fuzzy logic." Eastern-European Journal of Enterprise Technologies 2, no. 3 (110) (April 30, 2021): 52–65. http://dx.doi.org/10.15587/1729-4061.2021.224529.
Full textAbstract:
An outsourcing IT project management model has been developed. The proposed model features taking into account the specifics of project management processes at outsourcing IT companies in terms of the uncertainty of the external and internal environment of their operation. The model is based on the stage-gate project management framework with fuzzy logic tools. The proposed modification of the fuzzy inference mechanism makes it possible to refuse to save the intermediate results which reduce the load on the database and create the possibility of using semantic networks. The technology of expert consultations was demonstrated by the example of decision-making regarding the assessment of the current status of the IT projects accepted by the outsourcing company for development. Dynamic nature and cyclical management of the portfolio of IT projects involves constant monitoring of the results of implementation with an appropriate regular portfolio reforming. The model was developed to improve the efficiency of the software development sub-process and minimize the negative consequences of financial dependence on the customer. The application software developed on the basis of the model of management of outsourcing IT projects and modification of the fuzzy inference mechanism has found practical application and was implemented in the computational practice of HYS Enterprise B.V. outsourcing IT company. Testing of the program shell has shown positive results in the course of solving the tasks peculiar to concrete stages of IT project management. The proposed structure and composition of the fuzzy knowledgebase of the expert shell are quite typical in terms of IT outsourcing problems. It is expedient to use the developed model at outsourcing IT companies in the process of project portfolio management
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Claude Mutiganda, Jean. "Circuits of power and accountability during institutionalisation of competitive tendering in public sector organisations." Qualitative Research in Accounting & Management 11, no. 2 (June 10, 2014): 129–45. http://dx.doi.org/10.1108/qram-04-2014-0034.
Full textAbstract:
Purpose – This study aims to analyse the role of circuits of power in institutionalising competitive tendering in public sector organisations and effects on accountability among public decision makers. Design/methodology/approach – The study used intensive field research data based on interviews, meeting observations and document analysis in a city, referred to as Sunset City, in Finland from 2008 to 2013. Findings – The relationship between institutionalisation of competitive tendering and accountability for total costs of public services depends on how public officials use management accounting and control systems to limit procurement risks and how political decision makers hold public officials to account. This study uses the concept of organisational outflanking within the circuits of power to analyse and explain the finding of ceremonial accountability. Research limitations/implications – Empirical findings cannot be generalised to other situations, but the theoretical framework used in this study can be applied elsewhere. Practical implications – It is advisable to avoid institutionalising macro-institutional market-based mechanisms, such as open competitive tendering in public health care organisations and municipalities in the EU, the consequences of which in terms of total costs, quality of services and accountability among organisational actors at local levels cannot be foreseen, minimised or controlled. Originality/value – This study uses the framework of circuits of power to extend the Burns and Scapens institutional framework to accountability for using public funds in outsourcing services during the ongoing financial crisis.
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Gonçalves, Leandro Rodrigues, and Fernando Carvalho De Almeida. "How Technology Intelligence is Applied In Different Contexts?" International Journal of Innovation 7, no. 1 (January 2, 2019): 104–18. http://dx.doi.org/10.5585/iji.v7i1.271.
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Technology Intelligence is one of the many ways of applying Competitive Intelligence. As CI, TI intends to detect and process weak signals in order to identify opportunities and threats and provide actionable information. There is still a gap in reported cases of companies actually applying Technology Intelligence. This article intends to answer the research question: How companies build an actionable technology intelligence project? Case Study and Action-research approaches were applied for this research. The article describes two application cases: a research institute with a petrochemical industry as a client; and a private petrochemical industry. Companies seem to not know how to deal with Technology Intelligence. When outsourcing, they are more willing to pay for an extremely comprehensive project that not necessarily needs to be so deep and complex. When doing it internally, decision makers are not willing to wait and give the TI analysts resources to conduct a project in the right deepness and complexity. It seems like a “goldilocks problem” applied to Technology Intelligence.
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Perera, Indika, and Pramuk A. Perera. "Developments and leanings of crowdsourcing industry: implications of China and India." Industrial and Commercial Training 46, no. 2 (February 25, 2014): 92–99. http://dx.doi.org/10.1108/ict-06-2013-0038.
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Purpose – Since crowdsourcing can be taken as a new field, the purpose of this paper is to suggest an idea/movement to motivate pro or anti-ideas/movements from scholars and experts to develop a synthesis in future. Design/methodology/approach – The paper provides a quantitative analysis of world leading outsource provider markets: China – manufacturing sector: and India – service sector. The paper uniquely presents the much needed analysis details along with a model that fits crowdsourcing into outsourcing setup. Findings – There is a strong need of policy implications and business process re-engineering strategies to harness the benefits of crowdsourcing into the present industry norms taking into account the macroeconomic norms as well as the potential impact on individual workers or participants of the crowd. Originality/value – The paper indicates a possible shift in the scope of management from managing a firm to managing beyond boundaries. Implications drawn in this paper can provide high impact support for decision makers and future research.