Global outsourcing and offshoring
The essence of the individual assignment is to apply various lenses to a real outsourcing situation in order to assess client’s and supplier’s capabilities, advise the parties on the risks faced and devise a plan to achieve success. In doing so, your paper will address one of the key issues in global sourcing, namely; how can suppliers and clients create value from engaging in sourcing relationships?
Further guidelines that include information about the content, grading, timeline and assessment procedures concerning the individual assignment are provided below.
1. Select an outsourcing project (you can consult with me by email about your choice)
You need to select an outsourcing project (offshore, nearshore or domestic) which meets the following criteria:
1. The contract was signed between 2005 and 2014
2. The deal concerns either an BPO or ITO (NO manufacturing outsourcing projects!)
3. There is sufficient information in public domain about the outsourcing project
4. There is sufficient information in public domain about the supplier and the client
5. You can envision getting access to either the supplier or the client to conduct interviews
with some leading figures, though this is not a must
3. Individual assignment
The analysis of the contract should include the following dimensions:
– A description of the project, the services outsourced and key contract terms
– A description of the client
– A description of the supplier
– An analysis of client’s sourcing capabilities
– An analysis of supplier’s capabilities
– An analysis of risks related to this outsourcing deal
– A plan proposed to both client and supplier to mitigate such risks
The assignment should conclude with some forward-looking recommendations by considering a possible change in the environment such as: new service concepts, consolidation in supplier market, bad financial position of the client etc.
The final report must be structured as follows (% of the final mark for each section included):
I) Introduction (5%)
i) Provide an executive summary of the paper, and what your key learning and conclusions are.
II) Outsourcing Project Overview (5%)
i) Information about the contract, key dates, what type of contract, which services were outsourced, where from, length of the contract, key players involved, how the bidding process unfolded, expected results.
III) Client Perspective (30%)
i) How experienced the client is in outsourcing?
ii) Is the sourcing model selected for this contract appropriate?
iii) Where the client’s outsourcing strengths and weaknesses rest?
iv) What retained capabilities related to the outsourced activities were developed?
v) What risks this client took in this outsourcing deal?
vi) What value this client expects to get?
i) Did the selected supplier make a good pick for this contract? Why?
ii) What advantages and disadvantages the selected vendor present with regard to its
ability to provide services in the specific context of this contract (country
attractiveness, global dispersedness, domain and managerial expertise)
iii) What risks the supplier took in this outsourcing deal?
iv) What value this supplier expects to get?
V) Recommendations (30%)
i) Considering the risks and expected results, how should the client safeguard their
ii) Considering the risks and desired value, how should the supplier extract value from
iii) How the supplier and client can arrive in a win-win situation in this contract?
iv) What would you change in the relationships at this stage?